@Anonymous wrote:
I have been told by 2 mortgage brokers that 640 is the minumum score allowed for a pre-approval on a FHA loan. I have read that Wells Fargo will go lower than that.
Does anyone know the truth on what is the minumum score. My TU is 690, EXP 639..so I knpw I am borderline right now.
THANKS!
The truth depends upon the lender.
FHA sets minimum criteria, but each funding lender can tighten the criteria.
One of the ways that lenders encourage loans or discourage particular types of loans is by increasing or decreasing the qualification criteria.
In general mortgage brokers don't have the underwriting latitude that funding lenders have anymore. Go to a mortgage banker and you will see that the minimum mid-score is lower (usually). A mortgage banker funds their own loans and then sells the loan to a servicer - a mortgage broker does not fund the loan. A mortgage banker is also called a correspondent lender. Ask your realtor and friends and family for lender referrals.
