Have a 612 credit score. Need an FHA mortgage and advice. Please help!

Asked by bdremployment, 45415 Sat Oct 20, 2012

My middle score is 612. I have a fair amount of money saved but need to find someone who will work with me. Any advice will be appreciated!

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Trevor Curran’s answer
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Wed Oct 24, 2012
Good morning bdremployment,

Many Lenders today require a minimum credit score of 640 to qualify for mortgage financing. If your credit score is less than 620, this is BAD credit.

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.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm


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
1 vote
Jessica Bate…, Agent, Beverly Hills, CA
Tue Jul 16, 2013
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!
3 votes
Megan Miller, Home Buyer, Fresno, CA
Wed Jun 17, 2015
580 is the minimum score for FHA Loans. Check out The Lenders Network, they referred us to our lender and we were approved after being rejected by like 5 lenders!
1 vote
Matt Helpling, Agent, Centerville, OH
Tue Feb 26, 2013
My firm offers options down to 580 credit score!

MHelpling@RapidDayton.com
937.938.9317

Thank You
Matt Helpling
0 votes
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