Financing in Atlanta>Question Details

npeters121478, Home Buyer in Atlanta, GA

Is there any mortgage lenders that are doing FHA with my score a 602 and my fiances a 651...please help

Asked by npeters121478, Atlanta, GA Wed Jul 24, 2013

Help the community by answering this question:


Yes, there are very few lenders who do FHA with less than a 640 credit score, VERY FEW! See FHA allows buyers to use gift funds when they do not have enough of their own money to buy, they allow up to a 6% seller concession, they allow for some flexibility with debt-to-income rations, etc. When you have less than a 640 credit score, you are almost always restricted to not being able to have any seller concessions or gift funds, and almost always need to qualify for lower ratios which means you will have less options when shopping for a house. Most importantly, these lenders who allow lower scores, always charge significantly higher rates. Way too expensive.

If your scores are around 602, it is very likely that you might just need to lower balances on some of your credit cards (for example) and be able to have a 640+ credit score in a matter of a couple days after making the necessary payments. Speak with a Loan Officer who can tell you exactly what you can do now to increase your credit score by 40 or so points. This way you're not limited to using these very few strict and expensive lenders and you'll have the option to use any lender that everyone with a 640+ scores are able to benefit from. This is the best way to go about it and it'll ultimately save you tons of money, it just takes a little bit of work and a week or so of total turn time.

I am always available to help you. All my information is below. good luck!

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
0 votes Thank Flag Link Wed Jul 24, 2013
The answer in short is YES. Most lenders require a 640 minimum middle fico score but at Total Mortgage Services we can provide a loan on a 580 middle FICO score. Some guideline highlights you may find useful:

Purchase Transaction:
Debt to Income (DTI): 50% max and for First time home buyers (FTHB) 45%
Loan to Value (LTV): MAX LTV is 95%
Borrower’s own funds: 5% of down payment must come from client’s own funds
Mortgage/Rent lates: No lates in the last 12 months
Seller Concession: up to 6%
Bankruptcy (discharge date to application): 2 years
Foreclosure: 3 years
First time home buyer (FTHB) course: Required

Rate and Term Refinance:
Max DTI: 45 to 50% depending on LTV
LTV MAX: 95%
Seasoning: 18 months (at the time of application)
Mortgage Lates: 0x30 – 12 months
Bankruptcy: 5 years
Foreclosure: not permitted

The 30 year fixed is the safest product to be in but in addition to the FHA 30 year fixed we can offer a FHA 20 year, FHA 15 year, FHA 10 year, FHA 10/1 ARM, FHA 7/1 ARM, FHA 5/1 ARM, FHA 3/1 ARM. We can also work with you to raise your credit scores so that you can take advantage of lower rates and fees. When shopping for a mortgage, it is always important that you work with an experienced and qualified Lender/Banker/Broker that has an A+ rating on the BBB. Poor to low credit scores or challenged credit are not a problem it is just an opportunity to win your trust and business for life.

Fritz Walter
Toll free: 800-359-1996 x551
Direct: 203-783-4551
NMLS ID: 387922
Visit my webpage:
Company Website:
Total Mortgage Services, LLC - NMLS #2764

Total Mortgage offers a complete selection of mortgage programs including:
Conventional, FHA, FHA 580-639 FICO, FHA 203 Renovation (Streamline & Consultant), HomePath, VA, VA IRRL, USDA, Jumbo financing , and No Income or reduced income. Portfolio, jumbo, and conventional programs offered for self-employed borrowers as well.
1 vote Thank Flag Link Fri Jul 26, 2013
Please visit my website for lender information Best of luck
0 votes Thank Flag Link Tue Jun 2, 2015
Yes, some lenders are not so strict with their credit score requirements. Shop around and you should be able to have someone to work with you. You can also contact CFS Mortgage.

Dana Lindberg
CFS Mortgage -
0 votes Thank Flag Link Sat Oct 12, 2013

We accept as low as a 580, I would love to help you be able to finance a home. Please feel free to contact me at 770-847-9340 and I would be happy to help with any questions you may have or begin an application for you.

0 votes Thank Flag Link Wed Oct 9, 2013
Hello npeters121478 .

With guidelines becoming more conservative there are virtually no lenders that will lend on an FHA program with a credit score below a 640.

There are some things that you should look for on your credit report that could help to improve your score. Make certain that your credit cards are at or below 30% of the limit. Check for accuracy of your accounts. Don't apply for new credit. Having multiple creditors run your credit can also decrease your credit score. Not having any credit cards could also cause a score to be low too.

There are many factors that impact the credit score. Your best bet would be to contact a lender that has experience in assisting homebuyers with situations like this.

The good news is that your credit score isn't in stone. It's simply a snapshot of what your credit profile is at the time that it is pulled.

c: 404.465.1766
o: 678.381.2257
0 votes Thank Flag Link Mon Aug 26, 2013
CFS Mortgage,, has a flexible loan program. They allow a mortgage after a foreclosure, short sale, or chapter 7 bankruptcy. There is only a six month waiting period. This is perfect for individuals looking to become homeowners again.
0 votes Thank Flag Link Sat Jul 27, 2013
Good afternoon npeters121478,

We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.

It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.…

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes Thank Flag Link Fri Jul 26, 2013

I would be more than happy to take a look at your situation and assess your options. Brand Banking Company has been around Georgia since 1905.

Feel free to give me a call anytime.


George Cohen
Mortgage Banker
678.442.3401 Office
678.985.5923 Fax
770.843.5482 Cell
apply online:
NMLS# 75615 | 1078450
0 votes Thank Flag Link Thu Jul 25, 2013
For an FHA mortgage, most lenders require a 640+ credit score for the last 3-4 years now.

Prospect Mortgage is one of the few direct lenders to offer an FHA 580-639 FICO loan program. Credit profile is a major factor in a mortgage approval. Generally, there should be no late payments, new collections accounts/charge-offs/liens/judgments in the last 12 months. It is required that all open collection accounts must be paid in full if their cumulative balances exceed $1,000.

The 3.5% minimum down payment can be from the borrowers own funds or it can be gifted from a family member. Two months of reserves for the PITI (Principal + Interest + Taxes + Insurance) payment + HOA Dues will be required. This must be from the borrower’s own funds and not a gift. FHA loans will allow a seller contribution toward closing costs/pre-paids of up to 6% of the sales price.

Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes Thank Flag Link Wed Jul 24, 2013
Our preferred lender is Wells Fargo , Ryan Harwood 770-619-1403
0 votes Thank Flag Link Wed Jul 24, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer