10-05-2011 03:16 AM
When searching online I found some info on FDA Choice loans, stating that they approve people who have a lower score in the 500's. Is this still around? I can't seem to find much more about it. I'm in Michigan and have a 560 score.
10-05-2011 07:39 PM
HUD revised the FHA lending standards in 2011 and for the 1st time ever set a min score of 580 to qualify for a loan, but they did leave an option for lenders that is a borrower were to put down a 10% down payment and meet all the other qualifications, then the lender could approve the loan.
that being said, lenders only have to adhere to the min of the standards to participate in the program, and as many borrowers are finding out in today's market.. many lenders have much higher standards set and much higher credit score requirements.
so Bob is correct --if you have 10% down payment you will have to call lenders to find one to write the loan with your current scores.. if you don't have 10% then you wouldn't currently qualify under the FHA lending guidelines.