Financing in Nashville>Question Details

Archie16, Home Buyer in Mount Juliet, TN

631 Mortgage Credit Score !! Turned Down for FHA.??

Asked by Archie16, Mount Juliet, TN Fri Apr 1, 2011

We qualified for 631 Credit Score.My husband's Chapter 13 is due to be discharged in 2 months. We have been trying to get pre approved for a Mortgage. Everywhere we inquired say we need atleast 640 for FHA. I felt in lieu of less than perfect credit a bigger downpayment wud help. Nothing is working and to up the credit score by 10 points it might take some time . Are there any lenders here in Nashville who can work with these scores for a pre approval.

Help the community by answering this question:


That is crazy! A lot of lender now want a 640 score but there are still lenders that require a 580 mid score, they just aren't always easy to find. The Lenders Network would be a good place to start, they work with many of the lenders that work with low scores.

Good luck!
1 vote Thank Flag Link Tue Dec 24, 2013
You can try Churchill Mortgage. They can qualify you based on underwriting. It takes longer, but it might a good alternative.
0 votes Thank Flag Link Fri Aug 12, 2011
Have you been able to purchase a house yet?
0 votes Thank Flag Link Fri Aug 5, 2011
Go to one of the homebuyer's workshop with NACA. They have classes twice a month. They have low rates, and no credit score required. They do require for you to have a budget, show proof of income, etc., I'll help you find a home when you get your pre-approval letter.
0 votes Thank Flag Link Sat May 28, 2011
Hi Archie16. First I want to clarify that when it comes to "mortgage inquiries" you can have quite a few of those withina 45 day period without it affecting your score. Given the size and significance of the purchase, credit bureaus realize your going to (at you should) shop around for the best terms and will not penalize you for such due diligenceNext, despite FHA's guidelines, there is still the lender's own guidelines to consider. Since it is the lender who is actually putting up the money, their guideline will supercede FHA's where applicable. And last, lender guidelines can/will vary from lender to lender. Perfect example: Despite FHA requirements, my mortgage now company requires someone to have been discharged from their Chapter 13 for at least 2 years before their eligble for mortgage consideration. Because we're supplying the money, this guideline supercede FHA's own regarding Chapter 13s.
0 votes Thank Flag Link Wed May 25, 2011
Try Prime Lending, Cindy Brown. 405-8913. Last I checked she said a 620 credit score would qualify. Some lenders that are working with private investors have more stipulations on top of the FHA regulations. She has been in business a long time and will be honest. Good Luck and call me if I can help.
Web Reference:
0 votes Thank Flag Link Tue May 24, 2011
Leneiva,I meant we can get financed after 1 yr of making Chapter 13 payments. In our case,my husband is done in May 2011.He will be out of Chapter 13 then.
0 votes Thank Flag Link Mon Apr 4, 2011
Hi Archie16:

You are correct, for Chapter 13 it is a year. Which is fine; however, you indicated a desire to get approved in a shorter amount of time than it would take to increase your credit score by 10 months. You also indicated your efforts to get an FHA loan. Realizing that they require a year wait, unless you get a conventional loan, the FHA guideline is going to be your barrier to getting financed sooner.

Regarding your credit score. If you have your credit pulled more than once in the same 30 day period for the same purpose (to secure a mortgage for a home), it only counts on your credit once, not each time your credit is pulled. I wouldn't recommend having a lot of lenders review your credit though. When I say a lot, I mean more than 4 in a 30 day period.

All the best to you!
0 votes Thank Flag Link Sun Apr 3, 2011
Lynn from Dallas, is correct be careful about letting to many people pull your credit, it will hurt your score each time it is pulled. If you have a copy of your credit report or you can pull a free one on then you can have an experienced person to look over this with you. They can make sure that all the items that were suppose to be in your bankruptcy are reported correctly. It is very typical that during or after bankruptcy things are not reported correctly and therefore need to be cleaned up. I would be happy to sit down with you and look over.
0 votes Thank Flag Link Sat Apr 2, 2011
If you KEEP being turned down each time you apply for a loan lowers your scores by approx. 5 - 10 pts. You can lower your debt ratio should improve your scores.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Sat Apr 2, 2011
Leneiva, That is for Chapter 7 . My husband filed for Chapter 13. If you look at FHA guidelines, it says we can qualify after 1 yr of regular payments even during Chapter 13.
0 votes Thank Flag Link Sat Apr 2, 2011
Call Jerry Vinett at 586-0111. He has been able to work magic with some of my buyers. Good luck and keep the faith.

Donna Garrett
Lighthouse Realty
0 votes Thank Flag Link Sat Apr 2, 2011
If a first time home buyer (defined as not owning a home in 3 years)I can usually work with 620 mid score. My number is 615-777-4663
George Margrave with Mortgage Investors group
0 votes Thank Flag Link Sat Apr 2, 2011
Hi Archie:

FHA requires that you be two years out of your bankruptcy.

There are lenders who'll
accept a lower score with 10%
down; however, you may
have to explore conventional
loan options which may require a larger downpayment.

I know that you'll get that
house. Be sure to visit my
website. I'm happy to
help you.
0 votes Thank Flag Link Sat Apr 2, 2011
Yes it is doable Archie. Ring me and we can discuss your options here. 615.414.9626.
0 votes Thank Flag Link Sat Apr 2, 2011
Mortgage loans can be confusing, that's why you need a Realtor that not only knows how to sell real estate but also knows how to work the mortgage system. I was a Banker for 16 years before I became a Realtor. I have handled every aspect of a real estate closing. I work very closely with a number of mortgage companies to help Buyers have a happy home buying experience. Many lenders have moved to the 640 FHA, but I have several lenders that will still do these down to a 620. I have also helped many people get their credit straight, there are a lot of little things you can do to quickly get your score up as well. Give me a call at 828-4575, we will sit down and go over your credit report to see what we need to do. My lender's can most likely get you done with out having to worry about getting your score up. I have helped people that thought they had no chance and they are now Happy home owners.
0 votes Thank Flag Link Sat Apr 2, 2011
Hello Archie,

I have a lead on one who will finance FHA with 580 and down payment of 10% or more.

Susan Benting
(cell) 615-804-8484
Reliant Realty
4711 Trousdale Dr. #121B
Nashville, TN 37220
0 votes Thank Flag Link Fri Apr 1, 2011
Nathan and Michael, I did contact few lenders I was referred to. Didnt work out except I got a few suggestions to up my husband's credit score. I dont want to wait too long and regret big time . We were hoping to get thru this major hiccup asap .Is this workable situation?
0 votes Thank Flag Link Fri Apr 1, 2011
Hi Archie,

There are many lenders that will work with scores that low. FHA is a product that is regulated by the government. However if you would like to speak to some different lenders I would be happy to refer you to them. Which lender have you contacted already?

Call me at 615-414-9626 if I can be of assistance.
0 votes Thank Flag Link Fri Apr 1, 2011
Yes I have a few lenders I work with that I would be happy to introduce you to. Give me a call at 615-310-1087 at you earliest convenience.
0 votes Thank Flag Link Fri Apr 1, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer