Home Buying in Minneapolis>Question Details

Alannakathryn, Renter in Minneapolis, MN

Looking for an FHA Lender for 590 credit score in The Twin Cities area of Minnesota

Asked by Alannakathryn, Minneapolis, MN Tue May 7, 2013

I've read that the new FHA minimum credit score is 530, but I'm having trouble finding a lender that accepts anything under 620. My husband has a credit score of 590 & 601. He has been with his job full time for three years. I have good credit (700), but I have only been with my job for 9 months, and technically am not full time (school bus driver). We could get his credit up in a few months, but we are VERY interested in a particular home in Columbia Heights for $55k, and don't want to miss out on it. Does anyone have any lenders or suggestions in mind that could help us in our situation? Thank you for your time.

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13
FHA really isn't credit score driven, it's the Banks and Lenders that set those score requirements. There are a few lenders that go down to 580 with FHA, I personally have closed on several homes with clients around and under 600. I recommend all my clients that have credit issues to check with The Lenders Network, check them out. If anyone can get you approved they can!

Good Luck!
3 votes Thank Flag Link Wed Jul 10, 2013
Thank you for the recommendation Jessica!!!
Flag Sat May 24, 2014
Cascade Mortgage here in Minneapolis does have lenders who can go down to the score you are asking for. We can do 580+ However as many people mentioned for 55k the property would most likely have many issues needing to be fixed prior to closing.

Please feel free to call me to discuss options that you may have and to hopefully put you on the path of homeownership.

Bill Boldenow
612 387 4745
1 vote Thank Flag Link Wed Jul 10, 2013
Please contact Michael Dietrich with iLoan.
You can call him at 651-206-3377.
His web site is:
http://www.dietrichmortgage.com
You can check out iLoan at:
http://www.iloanhomemortgage.com
0 votes Thank Flag Link Thu May 8, 2014
It seems that your scores in your range should work. Lenders like myself can go as low as 580 when it comes to credit scores. Of course, your other finances will need to be in place as well including your income, debt, assets, employment, expenses, etc. The best thing for you to do is to speak with a knowledgeable lender like myself to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!

Brian Nguyen
Sr. Mortgage Banker
NMLS # 659743
Phone: 949.667.2887
brian.nguyen@nafinc.com
0 votes Thank Flag Link Thu May 8, 2014
I use Bill Boldenow at Cascade Mortgage in Uptown Minneapolis.

Bill Boldenow

Purchase Manager / Loan Officer

NMLS# 31974

Cascade Mortgage

2801 Hennepin Ave S

Minneapolis, MN 55408

O: 612-252-3347

C: 612-387-4745

F: 866-365-5065

bboldenow@mycascademortgage.com

http://www.mycascademortgage.com
0 votes Thank Flag Link Tue Jun 18, 2013
Purchase new home or renovate your old one with 203k loan.
From my experience with 203k loans, the best advice is to use a lender that offers assistance via third party with 203k processing.
This shortens the closing time by weeks. Try http://www.cfs-mortgage.com/203k for more information.
0 votes Thank Flag Link Sat Jun 15, 2013
I've worked for companies in the past that would go below 620, but the down payment would be much larger, the rate would be much higher, and even though the guidelines said we could go below 620 it was never easy to actually get to closing. Here at Franklin American Mortgage I can go as low as 620, and if you're not there yet, our credit reporting system offers suggestions on how to rapidly imrpove your score.

For a no cost, no obligation quote and credit review, please visit my web site.
0 votes Thank Flag Link Thu May 9, 2013
It is very hard for a credit challenged buyer to find a lender because we no longer have the sub-prime option unless they have 30% down. I think in your case all you can do is get your husbands credit higher. To do that you have to start using more credit. If you don't already get a credit card and use it pay it off. Make sure you don't buy anything that takes longer than 1 year to pay off. Make sure his name is on all the electric, cell phone, cable everything you have. There are no short cuts you just need to start the rebuilding. Save your money because that also is important to have a healthy balance in your checking and savings account 10K would be nice. What you are doing is making yourself financially responsible. If you don't have a 401K and it is offered at work open the account. Good luck but I don't believe you will get all this done in 2 months. You need that 2 year work history.
0 votes Thank Flag Link Tue May 7, 2013
FHA financing will not allow you to buy a home that needs repair.... qualifying for the FHA 203k rehab loan requires a higher score than 590, but I would talk to a mortgage broker!

Bill Boldenow

Purchase Manager / Loan Officer

NMLS# 31974

Cascade Mortgage

2801 Hennepin Ave S

Minneapolis, MN 55408

O: 612-252-3347

C: 612-387-4745

F: 866-365-5065

bboldenow@mycascademortgage.com
0 votes Thank Flag Link Tue May 7, 2013
I have a lender who can do down to 580 with FHA, I can email you his contact info if you wish. Keep also in mind that FHA has a property condition minimum that very cheap properties may not pass.
0 votes Thank Flag Link Tue May 7, 2013
Good morning Alannakathryn,

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.
http://www.consumer-action.org/

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.
http://www.consumer.ftc.gov/articles/0058-credit-repair-how-…

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 Tue May 7, 2013
I'm not sure if you have any other limitations that would hold you back, but I do have a lender that would be able to work with your score. Instead of posting his info here, though, please call me directly and I will get you in contact with him.

Best wishes.
0 votes Thank Flag Link Tue May 7, 2013
From a practical standpoint FHA is still 640. I have found a couple lenders that will go closer to 600, but you end up paying more in interest rate, and the UW is more strict. I don't know anyone that will do 590.

This may seem a little harsh, but you set yourself up for failure by looking at houses before you got pre-approved for financing. The good news about real estate is that there will always be other other homes, so get set up with a great loan officer who can help you re-build credit. They should utilize rapid-rescore. If you want a referral just get in contact with me.

FYI 55k in Columbia Heights? I am pretty doubtful that home would have passed FHA. Be careful looking at homes only accepting conventional or cash.

Chris
Realtor North/NE Suburbs
651-307-7663
chris.block@imetroproperty.com
0 votes Thank Flag Link Tue May 7, 2013
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