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?
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?
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.
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!
What lenders are qualifying for 500-550?
Not many anymore, best bet is to go through a mortgage broker.