FHA credit checks

[Anonymous]

Hi mst2009,

The thread you had replied to was almost 2 years old so I split your post off to start a new thread. All I did was change the title. If you want to change it to something else just click on "Options" and then "Edit Message".

-marinevietvet, myFICO moderator

I was approved for a mortgage today from Dollar Bank, I thought they were part of the FHA program but they are not, it is a traditional loan,since paying down all of my debt I have little towards downpayment and closing.  Since my credit was checked a couple of days ago will my score be affected if I request another credit check with a broker for the fha 203k loan?  My middle score is 644 and the broker said that fha is looking for 640 and above...I have seen some grant programs also for covering downpayments and closing cost that Dollar Bank feels will be acceptable in processing the loan...I thought getting a traditional loan was tougher through a bank than a FHA...the Dollar Bank loan will give a loan for the mortgage but not the repairs on the home (septic system, a couple of windows, and roof) Can I negotiate cost of repairs into the price or make my offer contingent on repairs?  Or should I just take a chance on running another credit check to see if I qualify for FHA?  I am so confused, the property is bank owned and I am not sure how much they will negotiate...and I am worried about the cost of repairs... 

[Anonymous]

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@Anonymous wrote:

Hi mst2009,

The thread you had replied to was almost 2 years so I split your post off to start a new thread. All I did was change the title. If you want to change it to something else just click on "Options" and then "Edit Message".

-marinevietvet, myFICO moderator

I was approved for a mortgage today from Dollar Bank, I thought they were part of the FHA program but they are not, it is a traditional loan,since paying down all of my debt I have little towards downpayment and closing.  Since my credit was checked a couple of days ago will my score be affected if I request another credit check with a broker for the fha 203k loan?  My middle score is 644 and the broker said that fha is looking for 640 and above...I have seen some grant programs also for covering downpayments and closing cost that Dollar Bank feels will be acceptable in processing the loan...I thought getting a traditional loan was tougher through a bank than a FHA...the Dollar Bank loan will give a loan for the mortgage but not the repairs on the home (septic system, a couple of windows, and roof) Can I negotiate cost of repairs into the price or make my offer contingent on repairs?  Or should I just take a chance on running another credit check to see if I qualify for FHA?  I am so confused, the property is bank owned and I am not sure how much they will negotiate...and I am worried about the cost of repairs... 

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Shopping for a mortgage will not effect your score as long as the inquiries are all withing a certain amount of time. I believe it is 2 weeks, or 30 days. One of the mortgage guys on here should know. It sounds like you would do better with a FHA 203k loan which would include repairs. I would suggest you find a good mortgage broker who has access to different lenders and loan programs. He/she can run your credit and help you figure out what you qualify for and what options would be best for you.

[Anonymous]

The safest window is FOURTEEN DAYS.

Most scoring models abide by the 2 weeks, and different versions have slightly bigger windows, but two weeks is your safest bet.

And you might take a score hit when your first hard inquiry hits your file, but you should not get a score drop even if you take on 10 more hard mortgage inquiries.   However, it's best NOT to take on more than 4 mortgage hards if you think you may ever apply for a credit card again in the next 24-months.   Many other types of lenders look at TOTAL inquiries as well as your FICO score, and they may or may not care how old the inquiries are.

[ShanetheMortgageMan]

Since it's a bank owned property it is very unlikely they'd be willing to do any repairs, particularly if the listing said it's being sold in "as is" condition.  You also can't finance the cost of repairs into the purchase price.  Your options would be to go with the FHA 203k loan which would require another credit check, and since it's within 30 days of your last check your score shouldn't be impacted by the additional credit check... or you could purchase the home as-is (if it'd pass FHA or conventional requirements) and do the repairs on your own dime.  If you can, I recommend you go with the FHA 203k program.  I say if you can because bank owned properties typically do not like to deal with buyers who are using 203k or rehab type mortgages, as they generally take longer to close.