Home Buying in Lansing>Question Details

Pat, Home Buyer in Lansing, IL

I have a credit score of a 580-600 and i am about to close on a home in lansing, il but the lender is stating

Asked by Pat, Lansing, IL Wed Jun 10, 2009

I have a credit score of a 580-600 and i am about to close on a house in lansing, il but i dont think the deal will go through because the lender stated i now need a 620 for a FHA loan. Is this true? Are there any mortage brokers who can help me close before i lose my dream house.

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4
Betty Jones’ answer
The credit score requirement of 620 ifor FHA loans didn't just recently change. Many of the lenders my clients use here in Chicago required a credit score of 620 or better for FHA loans many months ago. Conventional loans require a score of 680 or better.

Your first step is to advise your attorney. The attorney will request an extension of the mortgage contingency. Then immediately start shopping for another lender AND more importantly go over your credit report closely. Is there anything on it that is having a negative impact on your score? Is there anything there that can be paid off prior to closing? If so, take care of it as soon as possible and make sure all three agencies are reporting it. This may help you to increase your score.

In regards to FHA financing, it may be best to go through a bank rather than a mortgage broker. The mortgage broker will "farm" out your loan to get the best deal possible. This might not be a big deal if your credit score were higher. But you don't want to have too many hits on your credit file. It could potentially decrease your credit score. Call or go into the bank and speak with a loan officer. Take your credit report with you and ask direct questions about their financing requirements.

And finally, remember, not all lending institutions adhere to the same strict requirement. Some are more flexible than others, but you will need to shop first.

Good luck to you!
2 votes Thank Flag Link Wed Jun 10, 2009
Attention home sellers: this is your buyer today. Are you feeling lucky? Well, do you?
1 vote Thank Flag Link Wed Jun 10, 2009
We can!! We are still doing purchases down to 531 credit scores and we are a nationwide lender! Please email me at jjohnson@lendamerica.com. Talk to you soon!
0 votes Thank Flag Link Wed Jun 17, 2009
Jake , where are you located
Flag Wed Jul 24, 2013
Betty is absolutey correct. You need to look at your credit score and see if there is something you can do to boost your score. Our brokerage uses a technique called rapid re-score which is something I may be able to help you with and then get your loan closed.

Please let me know if I can assist you.

David Cruikshank
Ardain Mortgage Corp
847-354-5455
davidc@ardain.com
0 votes Thank Flag Link Thu Jun 11, 2009
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