Financing in Stockton>Question Details

Rollow484342, Home Buyer in Stockton, CA

I have a fha loan my credit score is 587 will any lenders do a streamline with this credit score

Asked by Rollow484342, Stockton, CA Mon Mar 15, 2010

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Even though FHA does not impose minimum credit score requirements, most lenders today require that you have a minimum credit score of 620 - even for streamline refinances.
1 vote Thank Flag Link Mon Mar 15, 2010
Hi Rollow

i do have FHA 500 program , call me i am in Stockton.


sincerely

Omar Khamisa
Loan Manager
Omar@MSJMortgage.com
NMLS#: 369325
Cell: 510-648-5535
We close your loan Fast & Easy
Web Reference: http://msjmortgage.com
0 votes Thank Flag Link Mon May 26, 2014
It seems that your scores in your range should work. Lenders like myself can go as low as 580 when it comes to credit scores. Of course, your other finances will need to be in place as well including your income, debt, assets, employment, expenses, etc. The best thing for you to do is to speak with a knowledgeable lender like myself to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!

Brian Nguyen
Sr. Mortgage Banker
NMLS # 659743
Phone: 949.667.2887
brian.nguyen@nafinc.com
0 votes Thank Flag Link Thu May 8, 2014
Lou is correct. FHA has one set of guidelines and they are typically trumped by the bank's own requirments. 620 is the minimum credit score I have come across. Bank of America will go as low as 580 however, you better have some supporting factors in your file to be even considered. Factors can be:
>>very good reason for 587 credit like fraud, divorce, old and paid derogitory credit, ect. (must have proof backing up your reason)
>>over 6 months worth of reserves in a bank account or IRA (6 months of principle, Interest, taxes & insurance or the cost of living in that home)
>>spotless credit in the last year with more than 3 tradelines.

I wish you luck Rollow484342.
0 votes Thank Flag Link Wed Oct 27, 2010
Hi, Rollow484342

At one time streamline where done without the need of a min credit score. So long as you had made your mortgage payments on time within a 6-12 month period, you were fine. Now that changed and for most lenders you currently need a min 620-640 FICO.
0 votes Thank Flag Link Wed Oct 27, 2010
We do the streamline. You need one of the 3 scores to be a 640 in order to qualify.
0 votes Thank Flag Link Tue Oct 26, 2010
Nowadays probably yes, FHA just lowered requirements. I got two relevant things for you to read -- this is a blog excerpt from Bill Zielinski...

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The FHA is introducing new guidelines on loan to value ratios and the minimum credit score required for FHA borrowers. As detailed in a Mortgagee Letter from the Department of Housing and Urban Development (HUD), the following credit requirements will apply for FHA borrowers, effective October 4, 2010.

* To be eligible for maximum financing, borrowers will need a minimum credit score of 580 or higher.
* Borrowers with a credit score between 500 and 579 will be limited to a loan to value of 90%. A sub 580 FICO credit score borrower will henceforth need to make a 10% minimum down payment on a purchase transaction.
* All borrowers with a credit score below 500 will not be eligible for FHA-insured mortgage financing.

HUD’s newly introduced minimum credit score and loan to value requirements will apply to all single family loan programs, except for Reverse Mortgages (Home Equity Conversion Mortgages) and Hope for Homeowners.

The new credit requirements are not expected to dramatically change the number of FHA mortgage approvals. Most lenders had already imposed a minimum credit score requirement of 640 or higher for FHA borrowers. In limited cases, borrowers with scores between 620 and 639 could still obtain mortgage approval.

Many potential FHA borrowers with scores below 640 who cannot obtain mortgage approval may be left wondering why this is the case if the FHA has established a minimum score of only 580. The explanation for this is that the FHA does not make mortgage loans but rather insures FHA loans made by lenders. Despite the FHA insurance, banks do not have an iron clad protection from loss.

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... rest of that blog at http://seekingalpha.com/article/223956-the-fha-s-new-minimum…


And I wrote a 10 part blog called "Top 10 Credit Myths" which is good..

http://www.trulia.com/blog/monirmamoun/2010/10/top_10_credit_myths
0 votes Thank Flag Link Sat Oct 9, 2010
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