FHA requirements

[gdtobefree]

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?

[Anonymous]

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.

[gdtobefree]

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.

[Anonymous]

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.

[gdtobefree]

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?

[mandi]

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!

[Anonymous]

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.

[mandi]

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!

[gdtobefree]

Again a name of who you are dealing would be nice

[granny031350]

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.