How can I find a good FHA lender with specific requirements

[Anonymous]

Finding information about FHA approved lendors and their overlays is very frustrating. I need one with some specific requirements. 

1. My scores are between 620 and 640 but probably not over 640, so I need one that will go down to 620 with 3.5% down.

2. I need one that will accept a gift downpayment at that score (with gift letter).

3. I need one that won't make me repay the 3 charge-offs that are on my credit (all between 6 1/2 and 7 years old). They CAN apply it to my DTI, using the FHA 5% rule (5% of total unpaid charge offs are applied to DTI). I'm still under 43% DTI with that.

I'm in Arizona.

Is there anywhere on the Internet where I could research lenders? Any ideas on if I should go to a bank or a broker or a credit union, etc?

[Anonymous]

a new invention... GOOGLE..... (sorry I couldn't resist).... good luck, sure you will find a lender out there.

[Anonymous]

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@Anonymous wrote:

a new invention... GOOGLE..... (sorry I couldn't resist).... good luck, sure you will find a lender out there.

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Let me tell you, I've tried. Google is failing me on this one. Finding a place to get pre-approved for an auto loan was a lot easier.

[Anonymous]

Look up a "hometown lenders " type of place. They deal with several banks and may better be able to find you a suitable loan. Not much different than going to the dealership for a loan.

[StartingOver10]

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@Anonymous wrote:

Finding information about FHA approved lendors and their overlays is very frustrating. I need one with some specific requirements. 

1. My scores are between 620 and 640 but probably not over 640, so I need one that will go down to 620 with 3.5% down.

2. I need one that will accept a gift downpayment at that score (with gift letter).

3. I need one that won't make me repay the 3 charge-offs that are on my credit (all between 6 1/2 and 7 years old). They CAN apply it to my DTI, using the FHA 5% rule (5% of total unpaid charge offs are applied to DTI). I'm still under 43% DTI with that.

I'm in Arizona.

Is there anywhere on the Internet where I could research lenders? Any ideas on if I should go to a bank or a broker or a credit union, etc?

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I know it can be frustrating. What you need to do is call the lenders in your area and ask the LO's. Some of the LO's will have the answer to your questions, others will have to ask u/w (thinking of your question #3).  Really questions 1 and 2 are a slam dunk - it is question #3 that will be the deal breaker. PM me if you want a referral to a couple of lenders that loan in AZ but aren't located there (but do meet your needs as stated above).

[StartingOver10]

Forgot to answer the last part of your question:

Stay away from the big box banks now - Wells Fargo, Chase, BOA are much more conservative than the correspondent lenders.

Go to a correspondent lender (also called Mortgage Banker) where they originate and fund their own loans. Then after closing they sell them - usually to a big box bank which works well for most people.

Stay away from a broker that does not fund their own loans.

Another good alternative is community or regional banks in your area.