FHA: Same rate for everyone above 640 score?

[Mike_B03]

For FHA loans, do rates differ depending on the credit score (like they do with Conventional) or does everyone with a 640 score or higher get the same rate? Basically does it matter if you have a 640 or a 710 when it comes to the rate?

[Mike_B03]

Anyone?

[foofighter74]

It depends on the lender. If their criteria is 640, then yes, if you are above that, you'll get their best rate with no points.  640 does seem to be the line of demarcation. 

[tooleman694]

yeah everyone gets the same rate.

[Mike_B03]

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@foofighter74 wrote:

It depends on the lender. If their criteria is 640, then yes, if you are above that, you'll get their best rate with no points.  640 does seem to be the line of demarcation. 

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Yea I meant 640 as an example...but whatever their threshold is, everyone above that gets the same rate, no matter the score? That would be good, so I can stop stressing about getting our credit scores as high as possible. Mine is in the 685-705 range depending on bureau and my wife's is in the 700-720 range.

[foofighter74]

Yeah, no need to stress about them any longer.  You'll get their best rate easily. 

My wife needed one point between our first credit pull and whenever it is we lock in our rate to get the best rate without paying points....she's well over 660 now and has been since February, so we've stopped worrying about our scores.

I keep scorewatch monitoring her equifax just to make sure i am alerted as soon as possible to any issues, but we've got a couple different mortgage inquiries on there...we took out two new car loans in 2012....if a collection was going to pop up, it would have by now.  Also, neither of us has ever had any unpaid bills or anything ever charged off so i'm not really concerned.  Just figured it couldn't hurt to spend the $15 a month and be sure.

[Mike_B03]

Awesome! Good to know. I've got ScoreWatch going as well, definitely worth the peace of mind, especially while going through the house buying process. Might even keep it afterwards. I'm sitting at 701 for Equifax right now.

[tooleman694]

show off

[Mike_B03]

So I went straight to the source and asked the LO. They said that the rate does in fact change depending on the credit score. 640 - 679 is one rate, while 680+ could get a better rate. I'm assuming 720+ would get an even better rate, though they didn't say specifically.

[foofighter74]

That's not an FHA thing, that's their own guideline.  My lender? If you have at least a 640, you'll get their best rate.  The only thing having a higher credit score than that does is make the underwriting process and requirements easier - they dont' do a rental verification, bank balances aren't as closely scrutinized, provided you have the funds to close, etc.