FHA Loan Misconceptions of RequiredCredit Score of 580 NOT TRUE
I've been reading all over Yahoo questions and answers where FHA requires a score of 580 or higher. This is just not true. If you want TRUE answers go to their website or call them.
The information below is pulled directly from their web site at:
FHA does not have minimum credit score requirements, although past credit performance serves as the most useful guide in determining a borrower's attitude toward credit obligations and predicting a borrower's future actions. Using FHA's guidelines, lenders will make a credit determination based on the merits of each case. To find out if you qualify, and how much you can borrow based on your income and debts, you should contact a HUD-approved lender.
When I started the process for my FHA, my score was a whopping 473. Granted it is up quite a bit from there and still rising now that I've figured out how to clean up my credit report 2 years after a bankruptcy and no bad accounts since.
Don't Pay for how to do things like credit repair, or fall for you have to have a certain score for government guarantee loans. Always check with the source. the 580 is what the underwriters and lenders are willing to work with because they feel anything lower is too high a risk.
THEY WILL, you just have to LOOK and NEVER GIVE UP AND NEVER STOP THE FIGHT!!
- Anonymous1 decade agoBest Answer
you are so right -- the fha will work with persons on a case by case basis!!!
- houseLv 43 years ago
Steve there aren't any lenders available that i'm attentive to on your ratings. it isn't an FHA rule that forestalls you it has to do with the lenders FHA score card. See the funding global does not want your own loan as persons with your ratings are 4 situations extra in all probability to default on a value or perhaps the finished loan. That hurts the lenders score card and they couldn't promote your own loan on the secondary marketplace both. You extra suitable get your ratings up speedy to make this take position. So the first element to do is to pay the balances on any card to little or no like $10 on each. Then get a letter from the cardboard businesses as to the recent stability. once it really is executed deliver it on your own loan banker /loan officer and performance the credit re scored. That takes seventy 2 hours. The ratings would arise adequate for you to purchase. Now you'll want 2 ratings over 620 to purchase with an FHA secured be conscious. you should were pre qualified to purchase earlier any furnish develop into made. you may loose any ernest money you've on the settlement if there develop into not a financing out i'm a private loan banker in TN