Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePathÂ® | HomePathÂ® Renovation | HomeStyle Renovation | VA | USDA | GA Dream | Jumbo Financing
There are NO "Credit Scores" needed, FHA is a credit driven mortgage program. Now, that's per the Federal Housing Administration (FHA) guideline book. The Credit requirement "FICO Score" requirement are from the bank level. And no you can not go to FHA direct to get a loan.
Banks have their own credit score requirements because they will have to purchase the mortgage back if they loan defaults, kind of a "in house" requirment. I say this so you know you will have to have both working for you, Credit & Trade lines (active credit lines).
Credit history is VERY important. You said you paid off a few loans; what kind of loans? Student, car, credit cards? If you can recharge them do so so it will reactivate those lines. Yes crazy to say run your debt back up but this will give you the history you need (The longer you've had the trade line the better). Do not charge the card to its limit tho, 5% of the total card limit is best (under the FICO companies rules this is the fastest way to increase scores).
If you are not able to recharge credit (opening up new lines is not a good thing either, more of a last resort) then you will have to look for alternative credit lines, meaning things that do not show up on your credit report i.e. phone, utilities, store credits. FHA will look at these and your banker/loan officer will be able to add these trades to your credit report and get a "rescore" from were they pull credit. As long as they have a good pay history it will raise your score.
Being late is bad all the way around, but sometimes can not be avoided (food on the table or car payment late? I would opt for food). Like Mr Smith said time is key, you must have 12 month with no late payments.
There are alternative ways to lend but in these times credit scores and history are so important.
Hope this helps. Also, when you interview a banker tell him/her your situation and they should offer ways to help improve your credit and a way to meet your goals of home ownership. Good bankers are long term just and a Realtor.