topic Re: FHA Mortgage Lenders under a 620 credit score in Mortgage Loans

FHA Mortgage Lenders under a 620 credit score

sba301724 — Tue, 30 Oct 2012 17:24:58 GMT

I know it's been asked before, but I haven't seen any recent posts or updates about this.

I'm around a 610 middle score right now and am wondering if anyone knows of or has worked with a mortgage company providing FHA loans to people under a 620. I've found a couple like Embrace Home Loans but I've read some pretty bad reviews about them.

Thanks in advance!

Re: FHA Mortgage Lenders under a 620 credit score

Davidngo — Tue, 30 Oct 2012 20:07:58 GMT

I am in the same boat as you! My mid score is in that area as yours. My adivce is to take a look at your credit report and see what you can do to improve. There are a few lendors out that there that may still do below 620, one of them I pre-qualified through was Multi-State Home Lending here in Orange County, CA. They are portfolio lenders and expect an interest rate somewhere around 4.25 and up.

Is it really worth it; or could you spare some time and try to raise your scores to the 620-640 range? 1 point makes a difference, so with time as you clean up your credit report; you are opening up the doors to a better interest rate, which means lower mortgage payment.

If I am not mistaken, most lendors require at least 620 mid score but preferrably 640. Your not that far away!

Re: FHA Mortgage Lenders under a 620 credit score

jeffg330 — Wed, 31 Oct 2012 00:34:50 GMT

I agree with LP. If you can hold out on buying for 4-6 months and work on improving youur score.You should be able to reach the magic 640 score. I tried getting a home loan a few months ago with 620+ and was declined. Even if you found a loan with a 610ish score you'd probably end up with a rediculous interest rate.

Best of luck either way!

Re: FHA Mortgage Lenders under a 620 credit score

beb86 — Wed, 31 Oct 2012 00:49:26 GMT

sba301724 wrote:
I know it's been asked before, but I haven't seen any recent posts or updates about this.

I'm around a 610 middle score right now and am wondering if anyone knows of or has worked with a mortgage company providing FHA loans to people under a 620. I've found a couple like Embrace Home Loans but I've read some pretty bad reviews about them.

Thanks in advance!

There are but buyer beware on the conditions and headaches and extra cost you will endure.... I would work on raising above 640 first

Re: FHA Mortgage Lenders under a 620 credit score

Catacam — Wed, 31 Oct 2012 13:01:40 GMT

I closed with a midscore of 593. My conditions were no different then what others would have to provide however, it took a long time. Check into First Mortgage Corporation. I don't have a name for you because I used a local broker, and just beware that it will take at least 30 days from app to your clear to close!

Re: FHA Mortgage Lenders under a 620 credit score

jeffg330 — Wed, 31 Oct 2012 14:38:53 GMT

Wow Catacam, congrats. If you don't mind saying, when did you close? What interest rate? And how much down payment?
Just curious...

Re: FHA Mortgage Lenders under a 620 credit score

Catacam — Thu, 01 Nov 2012 12:38:20 GMT

We closed at the end of May with a 4.25%. We put 3.5% down (have to with FHA) at our purchase price was $271k. We could have closed with a 4%, but we chose to take the points for less down.

Re: FHA Mortgage Lenders under a 620 credit score

sba301724 — Thu, 01 Nov 2012 14:12:32 GMT

Thanks everyone for the info. Unfortuantely, we are on a tight deadline and need a mortgage sooner than later.

@Catacam - would you mind PMing me the brokers contact information that you used?

Thanks!

Re: FHA Mortgage Lenders under a 620 credit score

cracksmeup — Thu, 01 Nov 2012 14:13:46 GMT

I believe Wells Fargo goes down to a 600. I've not heard great things about them though, but maybe you'll have a better experience. I'm sure if you had wanted to wait and see if you could get your scores up, you wouldn't have asked the question. I'll never understand why people post those types of responses. Best of Luck!

Re: FHA Mortgage Lenders under a 620 credit score

bjwelch76 — Thu, 01 Nov 2012 16:44:51 GMT

My Wells Fargo fell through just yesterday. I'm at 614 with a judgment against me as well. Neither of which seemed to matter to them after explanations. But, however, the underwriter denied it after three weeks of waiting because of one $77.00 late payment in back in May.

I too am trying to find a lender that will work with me. Everything negative on my credit stemmed from a divorce back 2007. I found the perfect home for me and my kids (single dad here) and I desperately need a lender before the house is gone :(

Re: FHA Mortgage Lenders under a 620 credit score

hendersj31 — Thu, 01 Nov 2012 17:43:35 GMT

PM me and I will give you a lender who claims to do FHA down to 560 scores. I am not sure if he operates in your state or what the limitations, if any are. I am in Texas

Re: FHA Mortgage Lenders under a 620 credit score

justjunie928 — Thu, 01 Nov 2012 21:08:52 GMT

@hendersj31 - I am in the DFW area, can you PM me the lender information. thanks

Re: FHA Mortgage Lenders under a 620 credit score

beb86 — Thu, 01 Nov 2012 22:42:34 GMT

hendersj31 wrote:
PM me and I will give you a lender who claims to do FHA down to 560 scores. I am not sure if he operates in your state or what the limitations, if any are. I am in Texas

only thing with that is you have to have a 580 and above for 97.5% LTV (3.5% down) whereas below 580 is 90% LTV (10% down)

Re: FHA Mortgage Lenders under a 620 credit score

lucieprequalifies — Fri, 02 Nov 2012 20:47:12 GMT

Most of us (lenders) have access to that program nationwide. The difference is the down payment will be 10% for anything under 600 and the rates are higher than the published FHA rates.

Re: FHA Mortgage Lenders under a 620 credit score

Catacam — Sat, 03 Nov 2012 15:15:05 GMT

10% for anything under 580. I closed with 3.5% at 593. The banks do have additional overlays for people with lower score. We had to pay an additional .25% because our score was under 620.

Re: FHA Mortgage Lenders under a 620 credit score

asp123 — Sat, 03 Nov 2012 15:29:28 GMT

Also check to see if your state offers any assistance to FHA buyers for the down payment requirement. I closed last August here in Alabama and the state funded program financed my down payment requirement.

Re: FHA Mortgage Lenders under a 620 credit score

beb86 — Sun, 04 Nov 2012 02:53:06 GMT

asp123 wrote:
Also check to see if your state offers any assistance to FHA buyers for the down payment requirement. I closed last August here in Alabama and the state funded program financed my down payment requirement.

Some of these programs require a min credit score and income limit...

Re: FHA Mortgage Lenders under a 620 credit score

MissMia75 — Sun, 04 Nov 2012 17:46:35 GMT

I closed on my mortgage with FGMC on 05/18/2012 and my middle score was just at 580. I put the standard 3.5% down as per FHA's requirements and have a relatively low interest rate. So it could be done as I am a prime example. There are several of us who were funded through FGMC here on this site and we all were given interest rates at the current market value.

Re: FHA Mortgage Lenders under a 620 credit score

sba301724 — Sun, 04 Nov 2012 18:01:45 GMT

Missmia75 would you mind messaging me the contact information of the broker you used please?

Re: FHA Mortgage Lenders under a 620 credit score

asp123 — Mon, 05 Nov 2012 15:55:52 GMT

Yes, the state programs will have requirements for credit score. They are a good source for people with low to median incomes though. I was making $50,000 a year at the time and I was approved.