Wonder Woman,

Contrary to what you may read below it is entirely possible to go below a 620 for an FHA loan. A 620 score is the minimum for most of the large lenders (Chase, Wells, BofA, etc.) if you want an automated approval (what brokers use). However, private lenders do, in some cases, go as low as 580 with a manual approval. Keep in mind that these are very difficult to get approvals for because of the inherent perceived risks of lower-credit borrowers.

Hope this helped.

Kind regards,

Jason Diperstein
E Mortgage Management
800.793.9633 ext. 156
jdiperstein@emmloans.com

The minimum score is 620 I am an Loans Officer in NJ. I work with all of the large lenders and they all have the same requirement for FHA reguardless what anyone else tells you.

Robert Grasso
Loan Officer
LNB Commercial Capital
(856) 667-7775
rgrasso@lnbcapital.com

Our minimum credit score is 531 for purchases and 500 for refinances. Email me at jjohnson@lendamerica.com if you have any questions.

Actually if you were to contact the FHA Home Ownership Center they would inform you that FHA has "no minimum" credit score. Due to risk based pricing each individual lender has set their own minimum credit scores. It is very rare if ever that a lender will allow a 580 credit score in this market. My company allows a 600 score. That is up from our 500 min score floor in Jan 09. All other lenders have a minimum score requirement of 620 or higher. With the lower scores there are risk adjustments to the interest rate.

The Mortgage Insurance Premium is also subject to risk based pricing having up-front premiums (financed in the loan) from 1.5% to as high as 2%.

Hi Maria:

Currently the FHA minimum credit score guidelines that you need a "middle" score of at least a 620.

There are mortgage lenders who may tell you otherwise, but be careful. I know of two separate buyers who currently in bad situations, because the lenders told them they could get an FHA mortgage will scores of 600 or less. When they each got ready to close on the homes, the lenders hit them with big surprises....they told them they'd have to pay a few thousand dollars in additional "points" in order to get the deal to go through.

There is also talk that the FHA score minimum requirements may increase to somewhere between 640 and 680 very soon.

If you'd like to talk with a competent mortgage loan officer, let me know and I'll put you in touch with someone.

I cover Old Bridge and most of the towns surrounding it. Please let me know if I can help you with your home search.

All the best,

Amber

AMBER NOBLE-GARLAND
Weichert Realtors
455 Route 9 South
Manalapan, NJ 07726

917-723-5645-cell
732-831-6176-private fax http://www.AmberLovesRealEstate.com

It depends who you work with. If you talk to a broker, they will tell you a minimum 620 because all of their lenders that they submit to require that for their submissions - their hands are tied. You then go to individual banks. Some smaller banks like stronger files so they might want a minimum 620-660 score to qualify an FHA loan. Some don't.

However, I do not need a minimum credit score to qualify an FHA loan. I can submit an FHA file with any score - but a 580 and above typically is easier to qualify. If you need assistance qualifying for an FHA loan, you are welcome to contact me.

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