Financing in Milton>Question Details

K.day, Home Buyer in Santa Clarita, CA

I have a FICO score of 669, will I quality for a FHA loan?

Asked by K.day, Santa Clarita, CA Fri Apr 12, 2013

I haven't had the best credit, but my finacial picture is now good and I haven't had any late payments for almost three years. I do have two collection accounts, but those will be paid off within the month.

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Yes you will. So long as your yearly salary is decent and you have a down payment.

Easiest method to find out of you qualify is to go to your bank and ask them to pre-approve you. You do not have to use your bank for your loan, you can use any bank... but it is free if you go to your bank. You may want to try and pay off those 2 collections though.
0 votes Thank Flag Link Fri Apr 12, 2013
K,
Congratulations on turning things around. You should take pride in that. Your score will not be the issue for qualifying for FHA. There are other factors like income, assets, job time that all come into play when a lender evaluates an application.
Since you've done such a great job, let me encourage you to meet with a lender directly and get the other issues addressed directly. Only when an application is made and the lender pulls your actual scores can they approve, condition or deny you a mortgage.
I also want to encourage you to discuss paying off the collections before you do. There are cases where what seems like a good thing to do actually backfires. Depending on the age of the collections it may lower your score when you pay them off. If you have your application in and pre-approved first, the lender can tell you if that will be a good thing to do or not.
Best of luck.
0 votes Thank Flag Link Fri Apr 12, 2013
Hi K!

My mortgage professionals only need a score of 620 and higher with no late payments or negatives in the last 2 years (some exceptions for foreclosure) as the general rule. If you pay the collections, then we can have a rapid rescore completed for you as well. However, credit score is not the only component, time on the job, income and expenses all play factors as well.

Feel free to reach out to me direct at 253. 961.3613 and let me know how I can be of further help to you. Thanks for posting the great question!
Web Reference: http://www.mega-pros.com
0 votes Thank Flag Link Fri Apr 12, 2013
Most lenders will accept credit scores as low as 640 for FHA financing...some may go lower. Before you pay off your collections, do check with a lender and have them review your scenario. Depending on the amount of the collections and what type they are, you may not be required to pay off and close them... plus when you pay off collections, your credit score will probably drop a bit for a while because it's treated as a new activity on the collection.
0 votes Thank Flag Link Fri Apr 12, 2013
You should be fine as long as pay off collections. Let me know if you would to meet and go over. Thank you.
0 votes Thank Flag Link Fri Apr 12, 2013
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