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FHA Mortgage Lenders under a 620 credit score

New Member

FHA Mortgage Lenders under a 620 credit score

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!

Message 1 of 25
24 REPLIES
Contributor

Re: FHA Mortgage Lenders under a 620 credit score

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!

MyFICO Pulled: (11/28/2012) EQ 635, TU 650, EX 661
Lender Pulled: (12/05/2012) EQ 635, TU 677, EX 641
Lender Pulled: (02/20/2013) EQ 667, TU 661, EX 648
MyFICO Pulled: (05/30/2013) EQ 712, TU 685, EX 686

Finally Hit the 700's as of 06/05/2013!!!
Message 2 of 25
Regular Contributor

Re: FHA Mortgage Lenders under a 620 credit score

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!



Starting Score: EQ 609 EX 570 TU 656 March 2012 CH 7 BK 12/08
Current Score: EQ 691 EX 694 TU 713
Goal Score: all 3 700's.
Quicksilver $5000 Discover IT $1500 Barclays NFL $1250 Walmart $1500 CL Applied Bank $300 (secured)

Take the FICO Fitness Challenge

In the Garden till 12/14
Message 3 of 25
Valued Contributor

Re: FHA Mortgage Lenders under a 620 credit score


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!


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

ccpics2.jpg
Message 4 of 25
Frequent Contributor

Re: FHA Mortgage Lenders under a 620 credit score

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!

CLOSED ON OUR FIRST HOME MAY 30TH!!!


Starting Score: TU 589 EQ 526 EX603
Current Score: TU 635 EQ 603 EX ??
Goal Score: 750


Take the FICO Fitness Challenge

Message 5 of 25
Regular Contributor

Re: FHA Mortgage Lenders under a 620 credit score

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


Starting Score: EQ 609 EX 570 TU 656 March 2012 CH 7 BK 12/08
Current Score: EQ 691 EX 694 TU 713
Goal Score: all 3 700's.
Quicksilver $5000 Discover IT $1500 Barclays NFL $1250 Walmart $1500 CL Applied Bank $300 (secured)

Take the FICO Fitness Challenge

In the Garden till 12/14
Message 6 of 25
Frequent Contributor

Re: FHA Mortgage Lenders under a 620 credit score

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. 

CLOSED ON OUR FIRST HOME MAY 30TH!!!


Starting Score: TU 589 EQ 526 EX603
Current Score: TU 635 EQ 603 EX ??
Goal Score: 750


Take the FICO Fitness Challenge

Message 7 of 25
New Member

Re: FHA Mortgage Lenders under a 620 credit score

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!

Message 8 of 25
Contributor

Re: FHA Mortgage Lenders under a 620 credit score

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! 

Message 9 of 25
New Visitor

Re: FHA Mortgage Lenders under a 620 credit score

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 Smiley Sad

Message 10 of 25