Mortgage Loans

[sba301724]

I know it's been asked before, but I haven't seen any recent posts or updates about this.

I'm around a 610 middle score right now and am wondering if anyone knows of or has worked with a mortgage company providing FHA loans to people under a 620.  I've found a couple like Embrace Home Loans but I've read some pretty bad reviews about them.

Thanks in advance!

[Davidngo]

I am in the same boat as you!  My mid score is in that area as yours.  My adivce is to take a look at your credit report and see what you can do to improve.  There are a few lendors out that there that may still do below 620, one of them I pre-qualified through was Multi-State Home Lending here in Orange County, CA.  They are portfolio lenders and expect an interest rate somewhere around 4.25 and up.

Is it really worth it; or could you spare some time and try to raise your scores to the 620-640 range?  1 point makes a difference, so with time as you clean up your credit report; you are opening up the doors to a better interest rate, which means lower mortgage payment.

If I am not mistaken, most lendors require at least 620 mid score but preferrably 640.  Your not that far away!

[jeffg330]

I agree with LP. If you can hold out on buying for 4-6 months and work on improving youur score.You should be able to reach the magic 640 score. I tried getting a home loan a few months ago with 620+ and was declined. Even if you found a loan with a 610ish score you'd probably end up with a rediculous interest rate.

Best of luck either way!

[beb86]

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sba301724 wrote:

I know it's been asked before, but I haven't seen any recent posts or updates about this.

I'm around a 610 middle score right now and am wondering if anyone knows of or has worked with a mortgage company providing FHA loans to people under a 620.  I've found a couple like Embrace Home Loans but I've read some pretty bad reviews about them.

Thanks in advance!

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There are but buyer beware on the conditions and headaches and extra cost you will endure.... I would work on raising above 640 first 

[Catacam]

I closed with a midscore of 593. My conditions were no different then what others would have to provide however, it took a long time. Check into First Mortgage Corporation. I don't have a name for you because I used a local broker, and just beware that it will take at least 30 days from app to your clear to close!

[jeffg330]

Wow Catacam, congrats. If you don't mind saying, when did you close? What interest rate? And how much down payment?
Just curious...

[Catacam]

We closed at the end of May with a 4.25%. We put 3.5% down (have to with FHA) at our purchase price was $271k. We could have closed with a 4%, but we chose to take the points for less down. 

[sba301724]

Thanks everyone for the info.  Unfortuantely, we are on a tight deadline and need a mortgage sooner than later.

@Catacam - would you mind PMing me the brokers contact information that you used?

Thanks!

[cracksmeup]

I believe Wells Fargo goes down to a 600.  I've not heard great things about them though, but maybe you'll have a better experience.  I'm sure if you had wanted to wait and see if you could get your scores up, you wouldn't have asked the question.  I'll never understand why people post those types of responses.  Best of Luck! 

[bjwelch76]

My Wells Fargo fell through just yesterday. I'm at 614 with a judgment against me as well. Neither of which seemed to matter to them after explanations. But, however, the underwriter denied it after three weeks of waiting because of one $77.00 late payment in back in May.

I too am trying to find a lender that will work with me. Everything negative on my credit stemmed from a divorce back 2007. I found the perfect home for me and my kids (single dad here) and I desperately need a lender before the house is gone