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Established Contributor
Posts: 576
Registered: ‎11-13-2008
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FHA Minimum Credit Score Question?

Can someone PM me or tell me on here a lender that would allow an FHA mortgage to happen with a 580 or more credit score. I am asking this for someone I know. He talked to two lenders who stated he needed a 620 or higher to obtain a FHA thru their lending institution because of their automated underwriting system. They wont give him a loan because he has a 590. I read up on the FHA guidelines and they do state that a borrower with a 580 could obtain maximum financing. 570-579 would receive 90% LTV. Can someone give me a lender or lenders that actually adhere to the FHA guidelines. Any personal experiences would be helpful as well and a phone number if you cant leave it, please PM me. Thanks a lot.

Established Contributor
Posts: 945
Registered: ‎02-07-2011
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Re: FHA Minimum Credit Score Question?

While FHA guidelines state that 580 is the absolute minimum, almost all lenders have higher standards for their FHA mortgage loans. The only two lenders I am aware of that will even entertain a sub-620 FHA mortgage loan are Wells Fargo and Bank of America, but they give much higher scruntiny to applications with sub-620 scores and therefore, it's very rare for someone to actually close with that low of a score. The reality is that, if your score is under 620, you probably have some major credit issues that lenders are not willing to overlook and actually approve you with.

 

Hope the above helps though and good luck to your friend!

Mid-2010 Starting Scores: FAKO EQ 476 FAKO EX 506 FICO TU98 575
Jan 2012 Current Scores: FICO EQ 604 FICO EX ??? TU98 623
Feb 2012 Goal Scores: EQ 620 EX 620 TR 620 (or just the middle to be 620!!)
New Contributor
Posts: 131
Registered: ‎10-03-2011
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Re: FHA Minimum Credit Score Question?

When I called Wells Fargo back in November I was told that 640 was their minimum.  Didn't bother to call BOA as I was mainly inspired to refinance to get away from them (and praying my new mortgage doesn't get sold to them).  So I went with Quicken, but I'm not sure how low they go, since I was at 630 at the time, if it was 620 I still made the cut. 


Starting Score: EQ 630 TU 632
Current Score: 660 EQ 663 TU
Goal Score: 660 to purchase new vehicle


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Super Contributor
Posts: 6,670
Registered: ‎04-07-2008
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Re: FHA Minimum Credit Score Question?


BGinVA wrote:

When I called Wells Fargo back in November I was told that 640 was their minimum.  Didn't bother to call BOA as I was mainly inspired to refinance to get away from them (and praying my new mortgage doesn't get sold to them).  So I went with Quicken, but I'm not sure how low they go, since I was at 630 at the time, if it was 620 I still made the cut. 


They still do the 580. Two weeks ago a family member in FL got a mortgage with WF with a 585 middle score. That what I was told and it was through Wells Fargo. Might have helped them since both husband and wife make over $150k combined.




Frequent Contributor
Posts: 292
Registered: ‎01-05-2010
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Re: FHA Minimum Credit Score Question?

First Guarantee Mortgage Corp does loan as low as 580.

Starting Scores (7/26/2010): EQ 517; TU 508; EX 527 (lender)
Scores Along the Way (11/4/2010): EQ 542; TU 547; (11/8/2010) EX Plus 641
Scores Along the Way: (4/15/2011): EQ 516; TU 622; EX 585 (lender)
Scores Along the Way: (8/25/2011): EQ 617; TU 627; EX 625 (lender)
Scores Along the Way: (11/28/2011): EQ 617; TU 645; EX 667 (lender)
Current Scores: (8/9/2013): EQ 634; TU 662; EX 694 (lender)
Closed on a Home: 12/30/2011 Goal Scores (8/25/2014): 700 club
Established Contributor
Posts: 945
Registered: ‎02-07-2011
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Re: FHA Minimum Credit Score Question?

Pixie - can you tell me anymore about First Guarantee Mortgage Corp? Did you look into them, use them, etc? For sub-620, do they have any other requirements like a higher downpayment required, lower max DTI allowed, etc?

Mid-2010 Starting Scores: FAKO EQ 476 FAKO EX 506 FICO TU98 575
Jan 2012 Current Scores: FICO EQ 604 FICO EX ??? TU98 623
Feb 2012 Goal Scores: EQ 620 EX 620 TR 620 (or just the middle to be 620!!)
Valued Contributor
Posts: 1,863
Registered: ‎09-20-2011
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Re: FHA Minimum Credit Score Question?

Wells does do 580 but as mentioned it's scrutinized a lot more and the downpayment is higher.  Call back and get someone else.

New Contributor
Posts: 131
Registered: ‎10-03-2011
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Re: FHA Minimum Credit Score Question?

That's really weird about Wells, as they were the first people I called based on suggestions from several people.  I told the guy I had just run my FICO from Equifax and it was 630 and he said "Can't help you, you need a minimum of 640".  He wouldn't even take my name or run the other two bureaus to see if they were both higher, so he definately didn't have any other information on me except the score I provided to make that determination. 


Starting Score: EQ 630 TU 632
Current Score: 660 EQ 663 TU
Goal Score: 660 to purchase new vehicle


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Regular Contributor
Posts: 144
Registered: ‎01-15-2008
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Re: FHA Minimum Credit Score Question?

Embrace Home Loans does 580.
12/27/11: EQ 618 / TU 621 / EX 643 (lender pull for CLOSING!)
MYFICO: EQ 618 / TU 610 on 12-07-11
MyFico EQ: 603 on 12-01-11
Current: 594 EQ/ 616 EX/ 599 TU (lender pulls 11-28-11)
Previous: 555 EQ/ 552 EX/ 573 TU (lender pulls 10-28-11)
GOAL: NEW HOUSE ...GOT IT ON 01/27/12
2012 GOAL: 750
New Member
Posts: 5
Registered: ‎04-28-2012
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Re: FHA Minimum Credit Score Question?

[ Edited ]

How did you pull your credit score up 40 points in two months ?  And have mid fico of 618. Thanks.

 

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