low credit / FHA questions! please help!

[Anonymous]

i have a few questions about being approved for an FHA loan.

i recently pulled my FICO from equifax and it was 646, the others are in the general vacinity, give or take 10 points. i had two accounts in collections that have been PAID OFF about 45 days ago. other than that, i have a couple 30 day lates w/in the past 2 years and a 150 days late that was over 2 years ago. (i have been good with that account since 2005 EXCEPT for 1 30 day late last year) i already sent in my goodwill letters, but i am afriad to be pulling my report again so close to applying for a mortgage.

my questions are: i know that there are more than just FICO scores being considered when applying for a mortgage, but does anyone know if i am even eligible with a score in the 640 range? could anyone give me some info on "rapid rescoring"....is this something all lenders will suggest, and/or help me with? assuming that everything else is OK (my husbands score is about 740, our DTI is fine, and our savings is fine)....i would just like a little advice letting me know if my score is mortgage worthy or not.....  and are FHA loans more forgiving with credit than conventional loans? wouold anybody have any advice about what rate we may qualify for?? Is a FICO of 646 bad?

also, I have never owned a home, but my husband has already been on 2 mortgages. would we be able to qualify for an FHA since i am a first time home buyer? He says we are, but i am unsure.

i am just very nervous to find out. i recently pulled my 3 scores from true credit (not knowing they are FAKO) and they were very low.... 565, 585 and 630. it really freaked me out! i pulled them again from creditreport.com and they were 648,648 and 636. just to be sure i pulled my FICO from equifax and it was 646. i am just so confused now. i am not going to pull again before we apply for this mortgage. any advice or words of wisdom or support??

also, we were pre-approved for a mortgage, but no credit has been pulled yet.

sorry about this being so scatterbrained, i have been losing sleep over this all week!

thank you for any help or advice you can give me! i sincerely appreciate it!

[renaboo01]

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sarahinCT wrote:

i have a few questions about being approved for an FHA loan.

i recently pulled my FICO from equifax and it was 646, the others are in the general vacinity, give or take 10 points. i had two accounts in collections that have been PAID OFF about 45 days ago. other than that, i have a couple 30 day lates w/in the past 2 years and a 150 days late that was over 2 years ago. (i have been good with that account since 2005 EXCEPT for 1 30 day late last year) i already sent in my goodwill letters, but i am afriad to be pulling my report again so close to applying for a mortgage.

my questions are: i know that there are more than just FICO scores being considered when applying for a mortgage, but does anyone know if i am even eligible with a score in the 640 range? could anyone give me some info on "rapid rescoring"....is this something all lenders will suggest, and/or help me with? assuming that everything else is OK (my husbands score is about 740, our DTI is fine, and our savings is fine)....i would just like a little advice letting me know if my score is mortgage worthy or not.....  and are FHA loans more forgiving with credit than conventional loans? wouold anybody have any advice about what rate we may qualify for?? Is a FICO of 646 bad?

also, I have never owned a home, but my husband has already been on 2 mortgages. would we be able to qualify for an FHA since i am a first time home buyer? He says we are, but i am unsure.

i am just very nervous to find out. i recently pulled my 3 scores from true credit (not knowing they are FAKO) and they were very low.... 565, 585 and 630. it really freaked me out! i pulled them again from creditreport.com and they were 648,648 and 636. just to be sure i pulled my FICO from equifax and it was 646. i am just so confused now. i am not going to pull again before we apply for this mortgage. any advice or words of wisdom or support??

also, we were pre-approved for a mortgage, but no credit has been pulled yet.

sorry about this being so scatterbrained, i have been losing sleep over this all week!

thank you for any help or advice you can give me! i sincerely appreciate it!

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Hi Sara.

You seem to be in pretty good shape for FHA as far as credit scores. They are not really that credit score driven, so even if you had a 540 middle score, you could still apply. Do you have any lates within the past year, if so you may not get approved. But yet you said that you were already pre-approved, but I assume you mean pre-qualified. They don't pull your credit to do this. Also, you can pull your own scores as much as you want. As long as you pull them, you are not hurting your scores, only you wallet. Your score only goes down when you let multiple lenders pull your credit. So I think you should be fine, but others will chime in.

Rena

[DallasLoanGuy]

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sarahinCT wrote:

i have a few questions about being approved for an FHA loan.

i recently pulled my FICO from equifax and it was 646, the others are in the general vacinity, give or take 10 points. i had two accounts in collections that have been PAID OFF about 45 days ago. other than that, i have a couple 30 day lates w/in the past 2 years and a 150 days late that was over 2 years ago. (i have been good with that account since 2005 EXCEPT for 1 30 day late last year) i already sent in my goodwill letters, but i am afriad to be pulling my report again so close to applying for a mortgage. you can pull your own report without any fico hit

my questions are: i know that there are more than just FICO scores being considered when applying for a mortgage, but does anyone know if i am even eligible with a score in the 640 range? great score for fha could anyone give me some info on "rapid rescoring"....is this something all lenders will suggest, and/or help me with? assuming that everything else is OK (my husbands score is about 740(great!!! this will help the total file), our DTI is fine, and our savings is fine)....i would just like a little advice letting me know if my score is mortgage worthy or not.....  and are FHA loans more forgiving with credit than conventional loans? wouold anybody have any advice about what rate we may qualify for?? Is a FICO of 646 bad? 620+ gets the same rate as a 800 fico on fha loans

also, I have never owned a home, but my husband has already been on 2 mortgages. would we be able to qualify for an FHA since i am a first time home buyer? He says we are, but i am unsure. fha is NOT a fthb loan. you can sell your fha house yesterday and close today on a new fha loan

i am just very nervous to find out. i recently pulled my 3 scores from true credit (not knowing they are FAKO) and they were very low.... 565, 585 and 630. it really freaked me out! i pulled them again from creditreport.com and they were 648,648 and 636. just to be sure i pulled my FICO from equifax and it was 646. i am just so confused now. i am not going to pull again before we apply for this mortgage. any advice or words of wisdom or support??

also, we were pre-approved for a mortgage, but no credit has been pulled yet. then you werent approved.

sorry about this being so scatterbrained, i have been losing sleep over this all week!

thank you for any help or advice you can give me! i sincerely appreciate it!

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everything looks good. let us know how it goes.

and get another opinion from a loan officer with the integrity to only approve you until after they pull credit and review 30days of paystubs, 2yrs w-2s and asset documentation

[Anonymous]

THANK YOU FOR YOUR RESPONSES,  i reallly appreciate any info i can get. i still have a couple lingering ?'s i would like to clear up once and for all.

what is the criteria for late payments on your CR, as far as FHA loans are concerned? i have heard "less than 2 30 day lates" and "no lates within the last 12 months"  what if there is a 30 day late, can anything be done?? my last one was june 2007.

*i meant pre-qualified, not pre-approved....oops*

am i safe to assume my FICO is 646 if i pulled it from equifax.com? can i also assume my LO will be pulling my real FICO? There was just such a drastic difference between all the numbers i pulled!

can anyone offer anymore criteria (credit only) for FHA loans? what is acceptable, what is not?

again, i thank you very much!

[DallasLoanGuy]

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sarahinCT wrote:

THANK YOU FOR YOUR RESPONSES,  i reallly appreciate any info i can get. i still have a couple lingering ?'s i would like to clear up once and for all.

what is the criteria for late payments on your CR, as far as FHA loans are concerned? i have heard "less than 2 30 day lates"<= bogus  and "no lates within the last 12 months"  what if there is a 30 day late, can anything be done?? my last one was june 2007.

no lates in the last 12 months for a manual underwrite. depending on the rest of your profile, an automated underwriting engine may still approve with 1 or 2 lates.... but they usually kill the deal. you just have to try.

*i meant pre-qualified, not pre-approved....oops*

am i safe to assume my FICO is 646 if i pulled it from equifax.com? the best place to pull your own scores is myfico can i also assume my LO will be pulling my real FICO? of course. There was just such a drastic difference between all the numbers i pulled!

can anyone offer anymore criteria (credit only) for FHA loans? what is acceptable, what is not?

again, i thank you very much!

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[lessismore2014]

Following is the basic FHA loan qualification guidelines.

• Two Years of steady employment, preferably with same employer.

• Last two years Income should be the same or increasing.

• Credit report should typically have less than two thirty day lates in last two years.

• Bankruptcy's must be at least two years old, with good credit since.

• Foreclosure's must be at least three years old, with good credit since.

• Your new mortgage payment should be approximately 30% of your gross income

[DallasLoanGuy]

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mnegron1969 wrote:

Following is the basic FHA loan qualification guidelines.

• Two Years of steady employment, preferably with same employer. with exceptions.

• Last two years Income should be the same or increasing.

• Credit report should typically have less than two thirty day lates in last two years. totally bogus and pulled out of thin air...

• Bankruptcy's must be at least two years old, with good credit since. or 1yr old with extreme circumstances.

• Foreclosure's must be at least three years old, with good credit since.

• Your new mortgage payment should be approximately 30% of your gross income. can be quite a bit more with other strong factors

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