Here are the conditions from the lender that allows a FICO score of 530:
FHA Loans with ZERO Move-In Financing, along with a $8,000 Tax Credit
~FHA Loans from 530 FICO Score~
These programs are also combined with a $8,000 Tax Credit for any of your Buyers that have not owned a home in the Past 3 Years.
Borrowers can finance a home loan up to $271,000. We have FHA Investors that will work with Borrowers with No Minimum Score if the following conditions can be met:
1. Borrower must be able to verify Income and Job History
2. The Borrower can have collections and charge-offs, if the actual date of occurrence is over One Year old (preferably Two Years)
3. Borrower must be able to verify good Rental History for at least 12 months
4. The Borrower must have at least 3 Trade-Lines that have a good pay history for the last 12 months, minimum. Alternate credit or trade-lines can be used.
5. No Reserves are required, but as always, they are helpful
Keep in mind that the better your credit score, the lower the risk for the lender and that usually translates into a lower interest rate. Let me know if you'd like to speak with them directly and I'll give you their contact info.