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Member
Serasvae
Posts: 16
Registered: ‎08-12-2012
0

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!
Frequent Contributor
Autumnslight
Posts: 311
Registered: ‎07-08-2012
0

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.

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Valued Contributor
Burned2manybridgesB4
Posts: 2,158
Registered: ‎03-15-2012
0

Re: FHA loan?

[ Edited ]

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.


Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010
0

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!
Super Contributor
DallasLoanGuy
Posts: 6,187
Registered: ‎07-03-2007
0

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.

 




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Member
Serasvae
Posts: 16
Registered: ‎08-12-2012
0

Re: FHA loan?

Thank you for the replies.

 

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

 

 

Thank you!

Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

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! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010
0

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!

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