Quicken Loans now offering FHA Mortgages with 580 Credit Scores

[Anonymous]

My friends are telling me stay away from Quickent. I was pre-apprved but went with someone else after listening to friends lol

[Anonymous]

I know this post is a few years old and since this mortgage stuff seems to change constantly I wanted to share this as an update.  I just spoke with quicken tonight and this is pretty complicated and misleading in a way.  I was told that the 580 requirement is now only for refinances.  The minimum score for an fha loan is 620 but requires manual underwriting which, I was told, results in fewer applications being approved because things that would slip through the computerized system end up being scrutinized and get the app denied.  He said that only about 30% off manual underwrites are ultimately approved and that you really need to have a 640 to get approval. 

[Anonymous]

That's sucky news. 

[Anonymous]

While this information is older, with an update, I'd like to give a little background on the credit score requirement of lenders.  Quicken doesn't set the minimum credit score, they abide by the scores as set by the secondary market.  They do not service loans, so they have to sell them to companies that do.  Companies such as BofA, Wells Fargo, GMAC, USBank, ect.  Those companies require, if they buy the servicing rights, a specific credit score, because they didn't do the underwriting so they are not familiar with the details for the customer.

FHA 3.5% can be financed below a 640 credit score, VA's can be financed below a 640 credit score, but you're going to have a rough time doing it with a lender that has to sell the loan on the secondary market.