topic Re: FHA Minimum Credit Score Question? in Mortgage Loans

FHA Minimum Credit Score Question?

MrCredit — Sun, 05 Feb 2012 12:55:43 GMT

Can someone PM me or tell me on here a lender that would allow an FHA mortgage to happen with a 580 or more credit score. I am asking this for someone I know. He talked to two lenders who stated he needed a 620 or higher to obtain a FHA thru their lending institution because of their automated underwriting system. They wont give him a loan because he has a 590. I read up on the FHA guidelines and they do state that a borrower with a 580 could obtain maximum financing. 570-579 would receive 90% LTV. Can someone give me a lender or lenders that actually adhere to the FHA guidelines. Any personal experiences would be helpful as well and a phone number if you cant leave it, please PM me. Thanks a lot.

Re: FHA Minimum Credit Score Question?

MBOhio2 — Sun, 05 Feb 2012 15:38:12 GMT

While FHA guidelines state that 580 is the absolute minimum, almost all lenders have higher standards for their FHA mortgage loans. The only two lenders I am aware of that will even entertain a sub-620 FHA mortgage loan are Wells Fargo and Bank of America, but they give much higher scruntiny to applications with sub-620 scores and therefore, it's very rare for someone to actually close with that low of a score. The reality is that, if your score is under 620, you probably have some major credit issues that lenders are not willing to overlook and actually approve you with.

Hope the above helps though and good luck to your friend!

Re: FHA Minimum Credit Score Question?

BGinVA — Sun, 05 Feb 2012 16:55:30 GMT

When I called Wells Fargo back in November I was told that 640 was their minimum. Didn't bother to call BOA as I was mainly inspired to refinance to get away from them (and praying my new mortgage doesn't get sold to them). So I went with Quicken, but I'm not sure how low they go, since I was at 630 at the time, if it was 620 I still made the cut.

Re: FHA Minimum Credit Score Question?

CS800 — Sun, 05 Feb 2012 18:12:33 GMT

@BGinVA wrote:
When I called Wells Fargo back in November I was told that 640 was their minimum. Didn't bother to call BOA as I was mainly inspired to refinance to get away from them (and praying my new mortgage doesn't get sold to them). So I went with Quicken, but I'm not sure how low they go, since I was at 630 at the time, if it was 620 I still made the cut.

They still do the 580. Two weeks ago a family member in FL got a mortgage with WF with a 585 middle score. That what I was told and it was through Wells Fargo. Might have helped them since both husband and wife make over $150k combined.

Re: FHA Minimum Credit Score Question?

Anonymous — Sun, 05 Feb 2012 22:52:57 GMT

First Guarantee Mortgage Corp does loan as low as 580.

Re: FHA Minimum Credit Score Question?

MBOhio2 — Mon, 06 Feb 2012 00:02:52 GMT

Pixie - can you tell me anymore about First Guarantee Mortgage Corp? Did you look into them, use them, etc? For sub-620, do they have any other requirements like a higher downpayment required, lower max DTI allowed, etc?

Re: FHA Minimum Credit Score Question?

boomhower — Mon, 06 Feb 2012 00:56:15 GMT

Wells does do 580 but as mentioned it's scrutinized a lot more and the downpayment is higher. Call back and get someone else.

Re: FHA Minimum Credit Score Question?

BGinVA — Mon, 06 Feb 2012 02:06:35 GMT

That's really weird about Wells, as they were the first people I called based on suggestions from several people. I told the guy I had just run my FICO from Equifax and it was 630 and he said "Can't help you, you need a minimum of 640". He wouldn't even take my name or run the other two bureaus to see if they were both higher, so he definately didn't have any other information on me except the score I provided to make that determination.

Re: FHA Minimum Credit Score Question?

Anonymous — Mon, 06 Feb 2012 03:53:57 GMT

Embrace Home Loans does 580.

Re: FHA Minimum Credit Score Question?

Anonymous — Sun, 29 Apr 2012 19:24:29 GMT

How did you pull your credit score up 40 points in two months ? And have mid fico of 618. Thanks.

Please don't post personal information on the public boards - MarineVietVet, myFICO moderator

Re: FHA Minimum Credit Score Question?

Anonymous — Sun, 29 Apr 2012 19:25:00 GMT

Call me to discuss please. Im in Austin TX AT Mod Cut. Thanks.

David A.

Re: FHA Minimum Credit Score Question?

Familywantsahouse — Sun, 29 Apr 2012 17:50:12 GMT

I'd be curious to see if anyone can actually post first hand knowledge of closing with a 580-620 score. My broker told us 620 at a minimum, and we're looking at a broker in FL (they are in house-so they lend their own money) and they are absolutely a 640 minimum.

Re: FHA Minimum Credit Score Question?

How2increase — Sun, 29 Apr 2012 17:59:36 GMT

I heard first guaranty mortgage will go down to 580 but underwriting is VERY strict and most of the times requires a lot of conditions. I think it really depends on your particular situation. These sub-620 loans aren't a "one size fits all" it just depends on what is holding your score down. I'm in the same situation as you, and I have done everything in my power to increase the scores. Now all I could do is keep on paying bills on time and let time run its course. I'm praying FGMC will be able to help me!!

Re: FHA Minimum Credit Score Question?

How2increase — Sun, 29 Apr 2012 18:01:12 GMT

MBohio2 didn't you close with lower then a 620?

Re: FHA Minimum Credit Score Question?

Anonymous — Sun, 29 Apr 2012 18:02:36 GMT

I think Catacam is about to close with below 620 also...

Re: FHA Minimum Credit Score Question?

Anonymous — Sun, 29 Apr 2012 18:36:13 GMT

Yes we are due to close May 10, and you can see my scores in my siggy. There are actually quite a few people who have closed with less than 620. First Guarantee goes that low, but we are using First Mortgage Corp.

It is a long process and has actually been pretty painless other than the wait. I will say that for us, we needed to pass Total Desktop Underwriting with a Approved status, which we did, in order to avoid manual underwriting which is much tougher to get through.

We also have a great dti, and all of the crap on my report is over 1 year old and mostly medical debt. It can be done for sure, and we are lucky that we have hard workers LO and Broker on our side!

Re: FHA Minimum Credit Score Question?

Anonymous — Sun, 29 Apr 2012 19:25:59 GMT

@Familywantsahouse wrote:
I'd be curious to see if anyone can actually post first hand knowledge of closing with a 580-620 score. My broker told us 620 at a minimum, and we're looking at a broker in FL (they are in house-so they lend their own money) and they are absolutely a 640 minimum.

I closed on 01/27/12 with Embrace Home Loans. I was originally APPROVED at 555 score but would have to put 10% down unless I raised my score to 580 (for 3.5% down FHA). I paid my cc's down to under 30% utilization & brought my score up 580 & lender ok'd 3.5% down. 1st house deal fell thru but we found a bigger, better home (and a little cheaper) and closed on it 01/27/12. Lender pulled my score again that day & I was about 600's but I had already been ok'd to close at 580. There were no ridiculous conditions or stricter scrutiny. I've sent a lot of people to them & they are doing a refi for my friend right now who's credit was below 600.

Re: FHA Minimum Credit Score Question?

vol4life — Fri, 18 May 2012 01:11:48 GMT

I am looking to use an FHA loan also and my credit is in the low 600's. I am active duty military and overseas, but would like to purchase a home for my wife back home and have someone gifting us a decent amount of money for the house. Would you mind telling me about your experience with Embrace loans, and kind of what you had to go through/who you worked with? Thank you in advance.

Re: FHA Minimum Credit Score Question?

Anonymous — Sat, 19 May 2012 01:37:10 GMT

Hello. I'm new to these boards... Just found them today. My question is to those who were able to purchase with a sub 620 score. As of today, my TU score is 641 and EQ is 571. What score do lenders typically use when deciding, such as Embrace home loans, to approve or deny a application? Thanks in advance!

Re: FHA Minimum Credit Score Question?

Anonymous — Sat, 19 May 2012 16:42:04 GMT

They'll use the middle score from your 3 reports, pretty standard anywhere