FHA loan with bad credit and default loans?

Asked by Howard Hardy, Waterford, MI Fri May 11, 2012

My husband and I would like to own a home. I was recently told me could get FHA with bad credit. My credit, in particular, has a repossession on it and a few credit cards in default standing. I also have a high amount of student loans (that are not in default, but are not yet in repayment as I am still in school). My credit score depending on the report is between 530-581. His is a little bit higher than that. He also has some judgements against him. We would like a small loan, particularly 40k to 50k, and we have as of now about 18k down payment. Is this possible, of do we need to pay down our debt first?

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Maria Cipoll…, Agent, Coral Springs, FL
Tue Oct 2, 2012
Start looking a for mortgage broker, they have access to many banks, private lenders and many different programs. Make sure to select one that can answer all your questions and concerns on your first meeting.

Best of Luck,

Maria Cipollone

1 vote
Robert Torrey, Agent, Clarkston, MI
Fri May 8, 2015
I think it is better to work on your score. You want to get up to at least a 620.Talk to a experienced lender they can help guide you in the right direction.
0 votes
Melissa Goss, , Center Moriches, NY
Fri Sep 27, 2013
You will not get a loan in that small of an increment. You will need a different type of loan, similar to a car loan, and it will not be a 30 year deal like a standard loan. Your credit may also need a big boost in order to get funding
0 votes
Brandon Fren…, Agent, Clarkston, MI
Thu Sep 26, 2013
Your best bet is to talk to a mortgage loan officer. A simple phone call and they will get you on the right track. Feel free too call me if your looking for an excellent loan officer. I can recommend a couple that can help you. Their advise is free of charge and priceless.
0 votes
Kobe, , London Park, Houston, TX
Thu Sep 26, 2013
The first thing would be to clear off your debt if you are not in hurry; secondly FHA has its own criteria and getting approved for it would be slight difficult. If you are considering FHA loan as bad credit then be ready for its rates scenario which is certainly going to be on the higher end. The best would be credit score if you can increase it, then everything would be as you need them. Best would be grabbing the acquaintance of http://www.paydaybank.co.uk for making things lighter in getting the approval of FHA.
0 votes
Tina Donigi…, Agent, Dearborn, MI
Thu Aug 22, 2013
Recently there are a few lenders who would give out loans to people with score credits less than 620. Contact me at 248-633-6331 or tina@eliterealtymi.com to provide you with 1 or 2 names you can contact. I can also help you find a home once we get you the pre-approval.
0 votes
Russ Ravary, Agent, Commerce Township, MI
Sat Mar 9, 2013
You need to pay down your debt, make payments on time, and rebuild your credit score to 620 - 640
0 votes
Mike Stawizky, , 48382
Fri May 11, 2012
To qualify for a good interest rate, I would suggest waiting but in your case you want to move now and I would recommend getting a pre approval to see what you can qualify. Usually a credit score of 620 is required for an FHA loan to Qualify for 3.5% down I'd be happy to help you. Let me know. Have a Great Day!

Best Regards,
Mile Stawizky
Keller Williams Realty
248 980-4406
Web Reference:  http://moveinnow.org
0 votes
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