FHA LOAN

[Anonymous]

Hello,

My fiance and I submitted an offer on a condo and we're getting our loan application processed.  She has a 550 score and I'm at 710.  WIll it be difficult to get approved for a FHA loan?

Thanks

[ShanetheMortgageMan]

Most FHA lenders require a 580 minimum score these days, however there are still a handful of lenders going down to the 500-540 level.  With a 540 the rates are over 7% vs. if you had a 620 it'd be low 6's.  Do you need your fiance on the loan to use her income in order to qualify?

Is the condo an FHA approved condo?

[BrianB_The_Loan_Professor]

It will be a long process with that lower score - they will have to do a manual underwrite in most cases which takes a long time. They will be looking for recent credit - 12-24 months to make sure there is a current practice of paying things on time etc...

I would suggest letting the people on the offer know that it may take some time and ask for flexibility - if it doesnt work out you should get a pre-approval done on your credit before submitting anymore offers.

Good Luck

Brian

[LisaJ]

Can you qualify on your own?  I had to do this; my husband's score was 540.

To my great surprise, I closed a couple of weeks ago.  Get yourself a great LO.    They are out there! 

[anca21bi]

What lenders are qualifying for 500-550?

[ShanetheMortgageMan]

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@anca21bi wrote:

What lenders are qualifying for 500-550?

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Not many anymore, best bet is to go through a mortgage broker.