What is the down payment needed for a credit score of 573 for a fha loan?

Asked by Ginger, 92408 Fri Mar 16, 2012

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, ,
Tue Mar 29, 2016
Hello Ginger, you may qualify FHA from fico scores between 500-579 with 10% down or minimum 580 fico score may qualify FHA 3.5% down. You may consider a 3%-5% grant down payment program up to 417k from a minimum 620 fico score which does not have to be repaid.

Your qualifications will be determined by your credit profile, debt to income ratios, fico scores, loan program and how much you want to invest into the down payment and closing costs. Your fico scores can be raised within 3-4 days in most cases to qualify for programs, rates and terms as necessary.

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0 votes
Gregorio Den…, , San Diego, CA
Sat Jun 30, 2012
I believe George is misinformed. FHA will not guarantee a mortgage with a 573 credit score and 3.5% down. FHA will only guarantee a 573 credit score with 10% down.

The answer is that you need 10% down with a 573 credit score to get a FHA mortgage. You will have to raise your score to a 580 to put 3.5% down.

For reference, this is detailed in HUD 4155.1 4.A.1.c Determination of Credit Worthiness and Minimum Credit Score Requirements

"If the borrower’s minimum decision credit score is:

• at or above 580 Then the borrower is eligible for maximum financing.
• between 500 and 579 limited to a maximum LTV of 90%.
• less than 500 not eligible for FHA-insured financing."
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0 votes
, ,
Fri Mar 16, 2012
With a credit score of 573 your options are certainly diminished, but we can go down 560 on a standard FHA 3 1/2% down payment loan. In order to qualify for CHDAP (1/2% Down Payment) you will need an automated approval, and that will be pretty tough with your scores. My recommendation is to contact a lender and work on your credit for the next 30-90 days therefore giving you many more options for financing your home. For for information, please read one of many blogs about credit.

Best of Luck!
0 votes
Luis E. Loza…, Agent, Weston, FL
Fri Mar 16, 2012
The best way to find out exactly your financial need to buy Real estate its to contact a loan office either in a bank or any financial institution, they can guide you better regarding credit score and downpayments, if due toy your credit score your are not able to obtain a loan, they can advice you how to improve your credit score to get ready to buy a a short period of time. However the 573 its a very low score to otain any kind of loans.
0 votes
the loan person stated he would be able to get an approval with a 30% down payment for a FHA loan on a 220000 = 66,000 down. It seemed kinda high and I was not getting a straight answer from him regarding the percent.
Flag Fri Mar 16, 2012
Luis E. Loza…, Agent, Weston, FL
Fri Mar 16, 2012
The best way to find out exactly your financial need to buy Real estate its to contact a loan office either in a bank or any financial institution, they can guide you better regarding credit score and downpayments, if due toy your credit score your are not able to obtain a loan, they can advice you how to improve your credit score to get ready to buy a a short period of time. However the 573 its a very low score to otain any kind of loans.
0 votes
Scott Godzyk, Agent, Manchester, NH
Fri Mar 16, 2012
With a score that low you may not be able to even get a fha loan, most minimums are 620. you should meet with a local and trusted loan officer who can prequailify you at no cost and guide you with what programs you may quailify for and what the down payment will be, interest rate, monthly payments etc.
Web Reference:  http://www.ScottSellsNH.com
0 votes
Jory Blake, Agent, Norco, CA
Fri Mar 16, 2012
With a 580 mid-fico there is a 1/2% down FHA program that will work. Your lender will need to work up your credit score first.

Jory Blake
951.742.3751
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