1st Time Buyer

Anonymous · ‎10-20-2008

I am looking to buy a home. my husband is expecting a large settlement from a car wreck in the next few months so we are using that money for a downpayment. My income is $60,000 per year and the only monthly payment we have is a car for $386 per month. My fico score is just over 500 for each CRA. I have a tax lein on my report that I am paying this month and I have a couple of collections on there that I am trying to remove. I have been in the same line of work for 10 years and the same job for 2 years. Do you think I would be able to get a FHA loan? How important is credit score to FHA?

DallasLoanGuy · ‎10-20-2008

FHA doesn't have credit score requirements... But the lenders DO!!

You will likely need 560 - 580+

Retired Lender

Anonymous · ‎10-20-2008

Dallas is right on as usual. I doubt a low 500 is going to get you anywhere right now. 580 is probably the lower limit for most lenders without having to go through a bunch of extra hoops and shopping around. 620 would be even better as far as getting an easier approval. I would use the money you are expecting to get your credit cleaned up (keep just enough of it to satisfy the 3.5 down paymnet for FHA and have the seller pay closing costs). Once you credit is clenaed up and you have saved a couple months mortgage payments (plus the down payment) then go through FHA for a loan.

Junejer · ‎10-20-2008

Hey creditmatters, per mickie's advice on cleaning your credit, do a search on DV letters and PFD letters, if you want to clean your credit. Don't send any $ to a CA without first doing this.