Home Buying in Sacramento>Question Details

Kmachado, Home Buyer in Sacramento County, CA

I underandstand so I heard I can qua;ify for a FHA loan with a fico score of 620, my question am I limited to banks with a fico score of 620?

Asked by Kmachado, Sacramento County, CA Tue Mar 15, 2011

I also heard on Trulia someone said a person can get a FHA loan with 1% down and fico score of 530 is this true?

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There are many great programs. However I believe you are referring to a program that allows the seller to cover your costs or credit, rather than a true 1% down.
1 vote Thank Flag Link Wed Mar 16, 2011
All lenders are different the down payment can be reduced by certain grant programs which grant you up to 3% of the purchase price as down payment. It is income restricted.
1 vote Thank Flag Link Wed Mar 16, 2011
If you have a 620 FICO score, you have to work with banks that allow scores down to 620. Major banks do require 640 or higher, however FHA guidelines allow scores down to 580 with 3.5% down and down to 500 if the buyer puts 10% down. So yes, there are lenders who can do low FICO score FHA loans. We used to do 3.5% down payment loans down to 530 until FHA established their minimum FICO amounts a few months ago.

We offer a 1/2% down payment FHA program with a 580 FICO. If you qualify, you get 3% down payment assistance and must contribute at least 0.5% of the purchase price. Other costs to purchase include an appraisal ~$450, home inspection ~$400 and you will have to pre pay your annual homeowners insurance premium and the lender may require a property tax installment to be paid (if closing near April or December).
0 votes Thank Flag Link Sat Mar 19, 2011
GOOD and typical question!
Sounds like you really need to seek information from a local, experienced Realtor that will coordinate your facts and interest with an knowledgable lender in your area.
0 votes Thank Flag Link Tue Mar 15, 2011
different banks require different numbers. contact a few and ask what programs and and credit score requirements they have. you should be able to get that information without running through a whole loan application.
0 votes Thank Flag Link Tue Mar 15, 2011
You can get an FHA loan with a 620 score, I have a resource for you, but you need 3.5% down. There are no FHA loans with 1% down. You can actually get an FHA loan with a 500 credit score if you have 10% down.

Let me know if I can help.
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Tue Mar 15, 2011
All major banks require a 640. I would contact that person to see if it's true. Most lenders can help you improve your score.

Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Tue Mar 15, 2011
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