Home Buying in 77586>Question Details

Alankeiffer, Home Buyer in San Leon, TX

Can I get approved for a FHA loan with a score of 621 - 638?

Asked by Alankeiffer, San Leon, TX Tue Feb 7, 2012

A broker told me my credit score was 621, two weeks later a lending company pulled my credit up and told me it was 638. I have very young credit (about 20 months) but have never had a late payment or collection, foreclosure, etc... only negatives are inquiries and one of my balances on a credit card was high. I make 1700.00 a week yet I have been with my company 21 months and since I work 84 hours a week they only recognize my pay at 40 hours. The home I'm looking at is 83000. Can I be approved for a loan in anyones opinion?

Help the community by answering this question:


Hi Alan,

Lenders will use your middle score for qualification purposes. That typically needs to be at least a 620 for FHA but some lenders require a 640. The good news is you are not that far off either say.

If you have never had any late payments the only reason for your score being that low is the balance on your credit card. Your score is partially calculated on the amount of your revolving debt that is in use. So you are probably using a very high percentage of your total revolving debt.

If possible I would pay that credit card down as much as you can. Once you have a two year history with your employer with documented overtime for that same period you can use that extra income to qualify. Lenders will most likely average your overtime over the past 2 years.

So the good news is you are very close. Taking the proper actions now will ensure you can buy a home in the months ahead. What you want to do going forward is keep paying your debt down and also try to save enough for your required down payment. Find a good loan officer who will work with you and help you get to where you need to be. If you do that once you have 2 years on your credit and work histories you should have a pretty good chance of being able to buy a home.

Best of luck to you!

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
1 vote Thank Flag Link Tue Feb 7, 2012
There are a few lenders that can go down to a credit score of 580. The process is a little more lengthy and involved, but in the end, you are a home owner! If you are still in the market to purchase and you are not already working with someone, give me a call and we can chat about it. At a 638 you should be good to go anyway. 281-709-7047
0 votes Thank Flag Link Fri Nov 1, 2013
Yes, you should be able to be approved if you are using a good lender, banker or credit union. 620 is typically the magic number to get approved but I have seen lenders advertising as low as a 580 credit score. Now what is confusing is there is three credit bureaus and they take all three scores and call it a tri-merged credit report and look at the low to average score.

Now with your credit you should be able to get approved. They may ask you for letters of explanation on certain items which is very normal. Regarding your income, they will count overtime but they typically take the average of the past 12 or 24 months. FHA does seem like your best bet unless you have served in the military. There are also other programs they can add on top of the type of loan you get as in MCC program, bond programs, etc. and these either allow you to qualify for a higher priced home, assist with down payment and so on.

I hope all this helps. If you need any more help, please feel free to call, email or text me. I help a lot of first time home buyers on the real estate side and am more then happy to help in anyway as well as represent you in finding the perfect home for you. Have a terrific day!

Thank You,

Your Personal Real Estate Broker
Texas Monthly Magazine "FIVE STARâ„¢ Customer Service Award for 2011, 2012 & 2013

Daniel De Mitri

Broker / Owner
Ph (281) 408-4185
Ph (512) 203-2191
Fax (281) 8175930
Premier Properties Realty & Management

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0 votes Thank Flag Link Sat Aug 10, 2013
Most all lenders currently are stating 620 or 640 is the magic number for FHA loans. I have just received a email from a lender stating they can go down to 530 though. Let me know if you still need any additional info. Good luck and have a great day!
0 votes Thank Flag Link Sun Feb 17, 2013
I know this is late, but why are brokers telling you about your credit score? That may explain the number of inquiries. Don't be so free with your social security number. Go to a reputable bank and sit down with a loan officer. Get approved for the amount you can finance, whatever it may be and purchase the house of your choice and within your means.
0 votes Thank Flag Link Tue Jun 26, 2012
Yes you can. Give my mortgage team member, Kim Harmon a call at 713-899-7436
0 votes Thank Flag Link Fri Jun 22, 2012
You sound like a good buyer to me! The best thing to do is get in contact with a reputable lender to guide you through the process and tell you for sure. It is a painless process. Buying a home for the first time is scary, so be sure and align yourself with the appropriate people to make it as stress free as possible. Good Luck!!
0 votes Thank Flag Link Wed Mar 28, 2012
Recommend to contact a mortgage broker direct. Keep in mind you will require have approx. 3.5% + or more downpayment , additional money for inspection, appriasal, closing cost and etc.

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
0 votes Thank Flag Link Tue Feb 7, 2012
620 is good enough.

Apply with confidence
0 votes Thank Flag Link Tue Feb 7, 2012
I would say you have a good chance. But what you need to do is to get with a lender and let them check to make sure you can qualify for the loan, whichs sounds like you could. But I am not a lender, if you want a name of someone please email me and I will be glad to give them to you.

Have a good day,
Debbie Hoffart
Prudential Premier Properties
email: debbieh@preproperties.com
website: http://www.preproperties.com
0 votes Thank Flag Link Tue Feb 7, 2012
Your best answer would be from a reputable lender after they have reviewed a completed loan application and credit report. But, yes, it is possible for you to get an FHA loan with those scores. If you had any new collections in the last 12 months, you could be declined, but you mentioned already that you have none. It is also possible that you might be required to put 5% down. A typical FHA loan requires only 3.5% down.

Good luck and if you need an agent to represent you on the purchase, please give my office a call.
0 votes Thank Flag Link Tue Feb 7, 2012
Yes you will be able to. Would you like for me to help assist you with a loan officer and a Realtor?
0 votes Thank Flag Link Tue Feb 7, 2012

I will be happy to point you to a Lender. Feel free to contact me at 713.530.2455


0 votes Thank Flag Link Tue Feb 7, 2012
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