FHA loan help. scores below 620. want to buy house with equity. House is so cheap we need to buy it. We currently rent it. please help

Asked by Michael Lavelle, Douglasville, GA Thu Dec 27, 2012

Currently, the house we are renting is being offered to us for sale. Its being offered below market value, as the home owner just wants to retire. should appraise at 50k or more & we will buy it for 35k.
Our scores are below 620 but I know we fall within FHA guide lines from what I have read. (Minimum credit score requirements for FHA home loans depend on which FHA loan product the applicant needs. Generally speaking, to get maximum financing on typical new home purchases, applicants should have a credit score of 580 or better. Those with credit scores between 500 and 579 are, according the the FHA guidelines, "limited to 90 percent LTV".) We can have a co-signer but people say that doesn't help in this situation. We can easily afford the house since our rent is much higher then the mortgage would be. Is there anything we can do?

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Jessica Bate…, Agent, Beverly Hills, CA
Fri Aug 9, 2013
Yes you get a loan now.I tell all my clients with lower scores to visit The Lenders Network. They have helped me close many homes by getting clients approved even with scores under a 600 for FHA. They have a few lenders that can go down to a 580 for FHA, so If anyone can get you a loan they can..

Good luck
4 votes
Prosper Real…, Agent, Tucson, AZ
Wed Aug 24, 2016
You should be fine. I suggest you contact Home Loans For All. They deal with all types of situations including this one. I'll include a link to their website. Hope this helps.

Best of luck!
1 vote
Maria Cipoll…, Agent, Coral Springs, FL
Thu Dec 27, 2012
Shop around for a mortgage broker that can explore your financial options with the credit score that you have now. Mortgage broker have access to many banks, private lenders and fifferent programs.

Best of Luck,

Maria Cipollone

Century 21 Tenace

1 vote
Invstnlfp, Home Buyer, New York, NY
Sun Mar 6, 2016
I am state and federally licensed to write mortgages in 31 states for a top direct lender in the mortgage industry who offers conventional, FHA, VA, and USDA loans. We keep your info private not broker it out and we go down to a 550 credit score for VA and FHA loans.. Are lowest score we accept for government loans are 550 when most lenders require a 620 and brokers a 580. You have to have two years of income with a score over 550 with bankruptcies discharge date 2 years and over. We have basic guidelines and a pretty easy process. Feel free to text me or call me anytime up to 10:00pm Eastern with any questions.
Brian Young 214-797-3479
NMLS 902687
0 votes
Mary Ann Var…, Agent, Douglasville, GA
Thu Dec 27, 2012
Yes Michael. You would need at least a 640 credit score. 3.5% down payment can be from your funds or gifted. Please let me know if you are interested in moving forward and getting prequalified.

Mary Ann Varner
Associate Broker
Better Homes and Gardens Real Estate
Metro Brokers
cell: 404.457.5399
e-mail: maryann.varner@metrobrokers.com
0 votes
Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Thu Dec 27, 2012
Hi Michael,
For an FHA mortgage, most lenders require a 640+ credit score for the last 2-3 years now.

Prospect Mortgage is one of the few direct lenders to offer an FHA 580-639 FICO loan program. Credit profile is a major factor in a mortgage approval. Generally, there should be no late payments, new collections accounts/charge-offs/liens/judgments in the last 12 months. It is required that all open collection accounts must be paid in full if their cumulative balances exceed $1,000.

The 3.5% down payment can be from the borrowers own funds or it can be gifted from a family member.

Since the lowest middle credit score is used, having a co-signer does no good. Someone else cannot offset a low score on your part.

Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
Web Reference:  http://www.rodneymason.com
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