Hi, Brenda

Your credit history is typically a reflection of your credit score. So in that context, and as the general rule, your score does matter. And the lower the score, the higher your interest rate and adjustments/discount points/fee you will have to pay. You will also have little to no say on either since your credit score and history does not place you in such a position. If the home you're interested in is that desirable (i.e. very attractive, affordable, great location, has significant walk-in equity and resale value) and may not be on the market long, then you may have to pay more now to reap a greater return later. And with the Stimulus funds still being available until the end of November, if you are a first time home buyer you stand to recoup up to 8,000 or 10% (which ever is greater) of your costs to close anyway. If this is not a must have deal, and if you indeed have a marginal credit score and history, then I would strongly urge you to take the necessary time to rehab and build your credit first. An experienced loan officer should be able to assist you with as part of service. That said, at my mortgage bank, simply getting your score above 620 (mind you: you credit history still matters)could save you 1,000s in closing costs and put you into a much lower interest rate that will save 10s of 1,000s over the term of your loan. The latter is especially true if you're looking to be in your new home for more than 10 years. An experienced loan officer , with your best interest at heart first, will go over all your options with you, making certain you fully understand their advantages and disadvantages so that you can make an informed decision. He/she will take the time and initiative to do this not only for your benefit, but also for your and your potential referrals repeat business.
Hope this helps. And if I can be of any further assistance: 800-678-6663 Ext 5154.

Brenda,
I'll keep it simple: We lend on credit scores down to a 540 and can offer terms competitive with any bank down to a 580.
Please call me to discuss.

Josh Stewart
1-800-839-1019 ext 135
Preferred Mortgage Consultants

While it may be true that some institutions have raised or are planning to raise their minimum requirements, that is really the lenders call and can vary from bank to bank. Now who knows what the future holds, requirements can change from one day to the next.

I work for Bank of America as well. We don't have a minimum score requirement for FHA mortgages (conforming is currently 620), however the lower the credit score the more explaining you will probably have to do. Low credit scores are usually the result of too much debt or an unsatisfactory payment history. Lenders are in no hurry to give money to folks who are ill-equipped to pay it back. Frankly, we'd rather lose the business than make a very risky loan... or so it seems these days :)

Either way, I'd recommend doing all you can to get your credit scores up and put yourself in the best position to qualify for a mortgage. Higher credit scores also equal more favorable terms. If I can be of any assistance, please email me or call me at 734-528-5511

Tony

Brenda-
Bank of America Home Loans does not have a minimum credit score requirement for FHA loan submissions. Minimum credit score requirements vary from lender to lender. If you have any questions about the criteria for a mortgage, you are welcome to contact me.

Luke Allison
Bank of America Home Loans
828-777-8828
luke.allison@bankofamerica.com

The investors that buy loans, such as Fannie Mae and Freddie Mac, or the agencies that insure low down payment loans, such as FHA or VA, have always had minimum credit criteria for loans that they will accept.

Most lenders remain liable for non-performing loans regardless of who buys it or insures it, therefore they have their own credit requirements that are often stricter. Currently FHA does not list a minumum FICO score but most lenders require a 580 or higher. All of the lenders I work with require a 620 or higher. Companies that offer Mortgage Insurance on non-fha (conventional) loans with less than 20% down payments also have their own criteria.

It may be that the specific lender you are working with is raising their credit requirements, but that does not mean that it will be the same for all.

It can be a confusing task to keep track of all the participants in the lending trnasaction, so finding a mortgage professional you feel comfortable with is critical. In addition to calling your local banks and seeking the advise of your real estate professional, you could contact the the Michigan Mortgage Broker Association, http://www.mmbaonline.com/ for a reputable broker that could help you with multiple lenders.