Lenders that will provide FHA with 600 credut?
I am loping for lenders that will provide FHA funding for 600 credit score. Anyone know of any out there
- BobLv 68 years agoFavorite Answer
FHA requires a 580 minimum score for 3.5% down financing and at least 10% down for scores between 500 and 579. A link to this information at the HUD website is posted below. Even though FHA guidelines allow for these scores, lenders have their own standards and I am not aware of a lender that will approve a score below 620 except on an exception basis. To make an exception there would need to be something particularly strong about your application other than the credit score. I have heard of lenders making exceptions but in this market lenders are not bending over backwards to approve low scores. Taking steps to improve your score by at least 20 points are much more likely to be successful, and it may not be that difficult to do. It could be as simple as paying down or even transferring credit card balances in some cases. Find a good loan officer or credit specialist to review your report with you to find the best ways to improve your score.Source(s): Licensed Loan Officer in Ohio
- SlickterpLv 78 years ago
None. The minimum is 620 per the FHA guidelines.
- Ryan MLv 78 years ago
You are aware that the minimum score for an FHA loan is 620 per the Feds...right? Banks CANNOT go any lower than that without an act of fraud being committed.
- chatsplasLv 78 years ago
Not in current mortgage market
You CAN make this happen, but you have to PLAN and work at it to make it happen
SAVE, save, save for down payment
BUILD your credit
Loan approval is based on the whole package of you: credit rating, job stability, sufficient down payment, adequate income, debtload, etc.
The MORE you put down, the More likely your chances of loan approval. The MORE you put down, the LESS you pay in interest over the life of the loan. Putting down 20% AVOIDS substantial extra costs of PMI and reduces total payments for home by tens of thousands of dollars.Source(s): You repair, rebuild your credit the same way you destroyed it, one payment, one month at a time. Pay all bills in full, on time. Pay down, pay off ALL credit cards. Use credit, only for what you can pay off in full every month. Pay off all delinquencies. Get a copy of your credit report and contest any erroneous entries. Within 6-12 months you should raise your score enough for a mortgage.