@Anonymous wrote:
Wife and I are looking to finance via FHA due to a portion of our down payment being a gift. With credit scores of 606 and 740 on a $175 k home what kind of rates do you think we'd be paying? Somewhere around 5.5% in Ohio?
Rates are around 5.5% right now, but the trend is upwards recently. The FHA is a "one rate fits all" system more or less - if you qualify for FHA, you receive the standard rate, which is generally fairly competitive with a prime conventional rate.
However, you may have a tough time qualifying right now - most lenders are requiring a 620 minimum FICO score to be approved (while the FHA doesn't itself have that as a guideline, lenders are allowed to apply their own guidelines over and above what the FHA requires. Almost all lenders are using a minimum 620 FICO score from what I understand). You'll most likely need to bring whoever has the lower score up to a 620+.
