Home Buying in 60901>Question Details

Mustachio75, Home Buyer in 33458

my credit score is only 574. I would like to get a FHA loan. I have a good job that I have had for the past 6 years and make over $60,000. Down

Asked by Mustachio75, 33458 Sat Jan 2, 2010

payment is no problem getting a loan is. I have heard different things. I heard no one will touch you below 620 then I have also heard of programs that take people with scores as low as 520. Whats the real truth? Is it possible for me to get a FHA loan or not? Thankyou.

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Hi Mustachio,
As has been previously answered, the minimum credit score for an approval of an FHA loan is 620. There are lenders who will allow for a credit score of down to 580, however, these lenders will want significant explanation as to why your credit score is not 620 as well as, additional proof that you can sustain a mortgage. Some of these factors may include, putting more money down, typically between 5-10%, having substantial savings, at least 6 months of your mortgage payment after your closing costs have been paid, as well as, solid job history to name a few. However, you may be able to get the points you need to go FHA in as little as 3-6 months, if you have your credit report reviewed and are advised on how to increase your score by taking specific steps. I'd be more than happy to assist you if you'd like to have a further conversation. Hope this helps!

Cecelia Marlow
PanAmerican Mortgage, LLC
Senior Mortgage Consultant
773-782-6000
cmarlow@yourhomeloanpartners.com
0 votes Thank Flag Link Mon Jan 4, 2010
Mustachio, there definitely are programs out there, but not necessarily in your state.You have to call you local and state housing agencies to find them. You can also try calling local Realtors and lenders.

In NJ we have state programs that allow it and there are other states that have them as well.

It is not as easy as it sounds. You will be required to pay off all outstanding judgements and most if not all collection accounts found on your credit report.

You will also have to explain all you lates and delinquencies.

I no longer work with these programs because it takes a very determined buyer in order for it to work out.

It may be far simpler to work on getting your score over 620.

If you are determined and prepared then go do your homework and I wish you best of luck.
0 votes Thank Flag Link Sun Jan 3, 2010
What are the programs in NJ? I am looking and have the same credit score... help??
Flag Wed Aug 21, 2013
Mustachio,

You do have to meet the FHA credit requirements. However, I have many lenders that can pull your credit and tell you exactly what you need to pay down on or do wth your creditors and when in order to bring your scores up to where you they need to be and it's a FREE service. I grew up and still do a lot of business in Kankakee County and the primary lender that I refer my clients to for credit assistance is in Bradley. Give me a call at 815-215-4018 or email me at tim@timireland.com if you're interested and I can pass along the needed contact information.
Web Reference: http://www.TimIreland.com
0 votes Thank Flag Link Sun Jan 3, 2010
If you have been declined by a mortgage broker with a 574 score NO you won't get a loan till you can clear the issues increase your credits scores.

If you follow the federal statues what is based on your credit report it will take approx. 60 - 90 days. as referenced many factors come into play.

I do credit repair consulting across the country, if you contact my office 972-699-9111 you can schedule a conference call between 11 am - 5 pm CST. Our fees are $39 for 15 minutes based on type of review. Paypal account is necessary for us communicate with you.

National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
Follow me on Twitter: http://twitter.com/Lynn911
Lynn911

http://www.lynn911.com
0 votes Thank Flag Link Sat Jan 2, 2010
Mustachio75,

FHA loan "no". I have never seen a lender deviate from the FHA guidelines by that much. (below the 620).

Many counties have help for First Time Home Buyer's with lower FICO's. Special programs include low down payments, interest rates, & lower guideline standards for loan approval.

I would recommend checking with a local "Direct" lender and if not possible, check with the County that your are wanting to purchase a home in.

Good luck!
Web Reference: http://www.weberhomes.INFO
0 votes Thank Flag Link Sat Jan 2, 2010
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