topic FHA requirements in Mortgage Loans

FHA requirements

gdtobefree — Tue, 29 Jan 2008 18:18:07 GMT

I went to the FHA site and clicked on apply and it sent to to Lending Tree, is it supposed to do that?

If so then FHA is no different then Freddi Mac (these people are not my favorite people right now).

Did I miss something when someone said there is no score req for FHA just no baddies in a year and a good pay history even with a low score?

Re: FHA requirements

Anonymous — Tue, 29 Jan 2008 19:24:57 GMT

The FHA does not make loans itself - it guarantees loans made by other companies. So you still have to apply at a mortgage provider to get a mortgage, you're just going for a FHA backed mortgage, rather than a conventional (backed by Freddie or Fannie) or other type of mortgage.

As to the rest, my understanding is that you are pretty much correct. The FHA is not score dependent, but requires clean credit for the past year, no foreclosures for the past 3 years, any BK discharged at least 2 (I think) years, and no unpaid federal judgements (like unpaid student loans, tax liens, etc). Lenders, however, may have their own requirements on top of those, though it's likely you'll find some with no other requirements (since the FHA is backing the mortgage, thus removing risk from the lender).

Shane or one of the other experts can probably correct anything I missed.

Re: FHA requirements

gdtobefree — Tue, 29 Jan 2008 20:50:43 GMT

So basically with a low score a loan through FHA is still unobtainable.

If anyone has done so please tell me what lender you went through and what was your score at the time.

Re: FHA requirements

Anonymous — Tue, 29 Jan 2008 21:03:54 GMT

Hi my name is Angel and Im new in this website and forum as well. Im working on a FHA loan right now with Chase. My score was below 600 and credit report not that good. Im doing a closing right now on a house. They worry more about your income to repay the loan than your credit score. They use your credit score to give you a low APR. Im getting a 5.625% apr for 30 years fixed. that is pretty good. If you have any other question let me know.

Re: FHA requirements

gdtobefree — Tue, 29 Jan 2008 21:12:31 GMT

A name and number to who you are dealing with would be GREAT. Chase is who DH truck is reaffirmed with after his chap 7 in dec 07. Think that would help or hurt?

Re: FHA requirements

mandi — Tue, 29 Jan 2008 21:13:00 GMT

Is that what your score is now? That is a fantastic rate for a sub 600. To get a fixed rate below 6% with that credit score is phenomenal. Where are you and where is your house?

What is your income level (if you don't mind)? Also, what is the loan value and the amount of your down payment? My DH and I are buying a home this summer so I am just wondering! Thanks!

Re: FHA requirements

Anonymous — Tue, 29 Jan 2008 21:24:20 GMT

Hi again, I asked for a loan of $250,000 but because I just started a new job with another company and my tax return papers doesnt reflect the amount of money Im making, I had to settle for a $168,000 loan. But hey! I found a 2004 almost completely new 3/2/2 house in Port St. Lucie, FL. It was sold in 2007 for $290,000 dollars. So I guess I dont need that much. my credit score is now router 621/622/611 I've been working really hard in fixing it. I got all this bad debt after the company I worked for moved the development dept to Mexico after 9/11.(just a little backgrnd). My income by myself is around $55,000 a year. but I have quaterly bonus of more than $1000 and usually my overtime money is higher than my regular salary.

Re: FHA requirements

mandi — Tue, 29 Jan 2008 21:34:42 GMT

Congrats to you! Have you moved in yet? Good luck. BTW which mortgage co did you use, I need to give them a call when I'm ready - they must be GODS! Take care!

Re: FHA requirements

gdtobefree — Tue, 29 Jan 2008 21:42:12 GMT

Again a name of who you are dealing would be nice

Re: FHA requirements

granny031350 — Tue, 29 Jan 2008 21:48:26 GMT

many banks have FHA loan departments. Call around in your area. In my area, I found Flagstar Bank and the head lender told me, credit score "around" 600 (my average is 585 right now) and my chapter 13 discharge in hand (coming here soon so that is why I am waiting) and he told me he can get me a loan. By the time I get my discharge, a lot more old stuff (negative) will be off my credit report and I am paying down my cc util to get my score up over 600. But FHA right now is the way to go. He also told me that in the tightening credit market, FHA was trying to keep it "loose" to help out those of us with lower scores get a home.

Re: FHA requirements

Anonymous — Wed, 30 Jan 2008 00:12:10 GMT

Sorry I was out with my boys. Here is his website http://www.nmmorgan.com/
He's really good.

Re: FHA requirements

courtney091082 — Wed, 30 Jan 2008 00:35:34 GMT

Thanks for posting the link, I have heard good things about Chase and we have the banks in my area. I am looking into an FHA loan here in the next 6 mos my scores are below 600 but everything as far as baddies are at least 24 mos old. I am PFDing my lil butt off hopefully I will get some good responses!!

Again, thanks..