Can a 580 credit score qualify for an FHA or FHA 203k loan?

Asked by Desperately Seeking, Park Forest, IL Tue May 19, 2009

For the past 5 months I have been diligently working on my credit by having things corrected, having a vacated judgment removed, etc. I think the lender that I was working with was a sham. However, I am pretty confident that my median score is now around 580-600, perhaps more. I know that the scores that lenders pull are different than the ones I pull myself. There is a foreclosure in University Park listed for 36,000 that probably needs about 8-10k worth of work. I dont have much money in savings, only about 2k, and I make 28, 500 a year. Is there anyone who can help me? Renting is not an option anymore...

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Sean Dawes’ answer
Sean Dawes, , Philadelphia, PA
Thu Aug 13, 2009
Just thought I would chime in and say my lender requires a 620 fico in order to get FHA or 203k.

How about looking into seller financed properties? But with 2,000 in savings, you really do not have much to use towards a downpayment. I would continue to save up and then go back looking on the market.



Sean Dawes
0 votes
Karen Swinger, , Tinley Park, IL
Thu Aug 13, 2009
Hi There~ Most lenders are requiring at least a 620 minimum, but there are a handful of lenders that can work with a 600 score. If your scores are closer to 580 you will probably encounter some difficulties. Keep also in mind that you will need some savings for earnest money, downpayment and closing costs. Have you considered a lease/purchase (rent to own)? This may be an option for you to build up both your credit score and your savings. We can chat more if you prefer.

Karen Swinger
Solid Source Realty
708.570.0034
kaswinger@sbcglobal.net
0 votes
Luke Allison, , Asheville, NC
Tue May 19, 2009
Hi There-
I would be glad to run your through for approval. I do not have a minimum credit score requirement for submissions, although a 580+ seems to be the best range to get an approval. If you need some assistance, please feel free to contact me.

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