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FHA loan?

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Member

FHA loan?

Can four people with low scores qualify for a FHA loan ? All four people have low credit scores (ranging from 520 to 620) Working on paying off/paying down debt & trying to rebuild credit, but need to get pre-qualified for a house already living in as a rent to own. Will rapid rescore help? TIA!
Message 1 of 8
7 REPLIES
Frequent Contributor

Re: FHA loan?

You need to talk to a mortgage broker. I'm not sure how they would deal with approving four people on one loan. Plus, rent to own situations can be very tricky. If the agreement isn't structured and carried out in exactly the right way, you can have a big mess when trying to get the mortgage approval.

Scores:
07/29/12: EX FICO (Amex) 684 | EQ MyFICO 631 | TU Walmart 695
Current: EX FICO (MyFICO) 733 | EQ (MyFICO) 683 | TU (Walmart) 745

First Goal: 700+ across the board - Got it on EX & TU!!!
Message 2 of 8
Valued Contributor

Re: FHA loan?

Rent to own is a dangerous item, as usually the base of the agreement is that you have a stipulated amount of time to improve your credit in order to qualify for the loan.

 

I'm sure there are lenders that still deal with the 620's and lower, but it'll cost a few points more.

Message 3 of 8
Valued Contributor

Re: FHA loan?

Doesnt matter at this time.

All 4 people have non qualifying scores. Once everyone who is going to be on loan qualifies thats when you apply.

At this stage of the game in my opinion you wouldnt qualify.

Now you can look for a private investor to try and finance your loan. But Im pretty sure the terms would be similar to your rent to own situation.

Rapid rescore will not help you either.
Good Luck
May all your dreams and wishes become a reality!
Message 4 of 8
Super Contributor

Re: FHA loan?

each borrower will have to have midscores that satisfy guidelines.

 

4 people on a loan is not a problem. but the lowest scores will drive the approval.

 

Retired Lender
Message 5 of 8
Member

Re: FHA loan?

Thank you for the replies.

 

Does anyone have any information on a FREE Consumer Credit Counseling program?

 

 

Thank you!

Message 6 of 8
Valued Contributor

Re: FHA loan?

I recommend getting info on how to rebuild your credit in the rebuilding forum here.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 7 of 8
Valued Contributor

Re: FHA loan?


Serasvae wrote:

Thank you for the replies.

 

Does anyone have any information on a FREE Consumer Credit Counseling program?

 

 

Thank you!


You can also do a search for a non profit company to help you.

Good Luck
May all your dreams and wishes become a reality!
Message 8 of 8