Lookinf for an FHA lender that will accept lower credit scores

Asked by lecopeland21, Wilmington, DE Tue Jul 29, 2014

My husband and I have been working hard for 2 years to save money for a down payment and closing costs (done, but still saving), rebuild my credit (slowly going up), and build his ( just made a big jump and continuing to go up.... We would like to buy a house ny the end of this year or early next year and just dont know where to start. We need to find a good mortgage "guy" that can walk us through everything and help us get into a loan. Has anyone been in a similar situation that could point us in the right direction?

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John Thomas, Mortgage Broker Or Lender, Newark, DE
Thu Oct 9, 2014
Your best option is a FHA loan as FHA will allow lenders to lend down to a 500 FICO score. The challenge is finding a lender that will go down below 640 or 620 as that seems to be the cut off for most banks. I work for a private mortgage bank that services our own loans so we can follow FHA guidelines so we will do loans below 620 and portfolio the loan so we make the credit decision. Feel free to call me to discuss your particular situation to see if you qualify 302-703-0727.

FHA only requires a down payment of 3.5% of the purchase price and will allow you to negotiate the seller to pay your closing costs up to 6% of the purchase price. If your score is below 580 then FHA requires us to make you put down 10% of the purchase price.

If you want to use the Delaware State Housing Authority Loan Programs as mentioned already, they require a minimum 640 credit score. I would also recommend attending one of the monthly first time home buyer seminars. You can sign up online at http://www.DelawareHomeBuyerSeminar.com

If for any reason you don't qualify, we can also enroll you in our Get Mortgage Ready Program which will give you a step by step action plan.

John R. Thomas
Certified Mortgage Planner - NMLS 38783
Primary Residential Mortgage, Inc.
248 E Chestnut Hill Rd
Newark, DE 19713
302-703-0727 Office
1 vote
Sarah Murray, Agent, Chadds Ford, PA
Sat Sep 27, 2014
If you are looking in Delaware, be sure to look up the first time home buyer credits for the state of Delaware, and the Delaware State Housing Authority. You can try calling Terry Olivier at Weichert Financial at: 302-584-1821 he is familiar with those programs, and there are lots of other mortgage brokers as well as companies out there that are wililng to help you. If you want - shoot me an email or a text/call at: 484-888-1677 or my email is: smurray@weichert.com. Good luck!
0 votes
Michael Kelc…, Agent, Centerville, DE
Wed Sep 3, 2014
I always suggest contacting a loan officer with qualification questions.My personal recomendation is Alisha Cooper with New Penn Financial. ascooper@newpennfinancial.com
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