Question About FHA Streamline 203k Loan?
Today i went to a mortgage lender and was told that I wasn't approved for this loan when I have good credit..I've been told people with bad credit can get it...I work full time $13/hr and I don't understand how I couldn't be approved ..he said you need 5 credit lines open...why would being irresponsible and having 5 credit cards make me more eligible for a loan? wouldn't less be what they'd want so they know I'd pay them back?
- Beverly SLv 77 years agoBest Answer
An FHA streamline you don't even have to prove credit or income. A streamline is only for people who already have an FHA loan in good standing. Either you or the lender is confused. No lender requires 5 credit cards..he's lying. If you have an FHA already the only requirements are that you have had no lates on your mortgage during the last year.. no appraisal is needed, no credit, no income. We have to prove you have income, but not that it's enough to pay. They figure if FHA has already insured you, you have already qualified.Source(s): Mortgage lender 27 years now.
- A HunchLv 77 years ago
He didn't say you needed 5 credit cards, he said 5 credit lines... but that sounds like a bit much to me too.
This is what you normally need for a loan:
If you work full time making $13 an hour, you won't be loaned more than $70000-$80000
If you work parttime you are probably not eligible for the loan
You must have worked in the same industry, preferably at the same job, for 2 years.
You still need to have the downpayment, typically 3.5%
You need credit above the 620 mark and you need credit history.
If you meet these requirements, go talk to another mortgage broker.
If you don't meet these requirements, you most likely won't qualify.
- Silly GooseLv 77 years ago
They are giving you the brush off. You are not qualifying. Could be your lower income, lack of savings/down payment, etc. Lenders will often say it's "your credit" just to avoid controversy.
Also know that most people pay credit cards in full each month. Fewer carry balances.