11-13-2008 10:38 AM
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?
11-13-2008 11:12 AM
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?
11-13-2008 11:21 AM
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.
11-13-2008 11:23 AM
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!
11-14-2008 11:48 PM
What lenders are qualifying for 500-550?
Not many anymore, best bet is to go through a mortgage broker.