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AXO asked in Business & FinanceCredit · 1 decade ago

Does a HUD-approved lender give FHA loans to people with low credit scores?

My husband and I are trying to purchase a home, and we have lower credit scores than most of the banks are requiring now. We've checked with Wells Fargo and Regions bank (both of which we don't qualify for). Do the HUD-approved lenders (listed on the government-based FHA website) work more with people - like doing manual underwritings?

Thank you!

2 Answers

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  • 1 decade ago
    Favorite Answer

    The general rule of FHA minimum FICO requirement at this time is 620 for all borrowers on the application. It changes from time to time (some months ago it was 580). Manual underwriting means that underwriter will look at the file for compensating factors instead of trying to fit you in to "ratios" and "scores".

    Previous answer is somewhat nonsense - the way rates are in a last month and a half - even with 700 FICO you would have to pay 1.5-2.5 points to buy down the rate to 4.8% or so.

    I would like to find out who is the lender that gives low interest and 100% FHA loans to FICO's 600 and below?

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  • Anonymous
    1 decade ago

    Yes! My husband and I both have poor credit and recently got an FHA loan with a 4.875% interest rate. My credit was too poor to be considered so the loan is just under his name. His credit was around 600 at the time and we worked with the underwriter quite a bit to get it approved. They'll even give you a loan if you've had a bankruptcy and you may qualify for 0% down financing.

    Source(s): recent experience (last three months)
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