>>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.
i do have FHA 500 program , call me i am in Stockton.
We close your loan Fast & Easy
Sr. Mortgage Banker
NMLS # 659743
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.
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.
HUDâ€™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.
... 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..