Lender said I can get a loan with a mid of 580

[light_in_Spanish]

So My lease may not be renewed because I got married and the rental is income restricted. I wanted to wait another year before buying, but  rentals are actually higher than buying a modest place. I have 20k saved and want to purchase a place beteen 130 k to 145. My income is 75k alone and 120k with husband, but he cannot be on mortgage because he got a new job 5 months ago. The mortgage broker said that my Fico mortgage mid score gets to 580 or more I can get a loan. He gave me some tips and so far scores went up to 579, 608, 587. Some paid accounts have not report it yet, but he said I will be ready in a couple of weeks. 

Has anyone done a mortgage with a score  under 620? I do not want a weird supprime mortgage

[Mortgage-Specialist]

Most lenders will not do this but there still are a handful who will. I do these quite often. Many lenders who approve these charge waaaay to much in fees and high interest rates. They simply take advantage. But there few who have very good offers. For your own good, I recommend you get various quotes.

[Shooting-For-800]

Make sure you compare APR and closing costs to the best rates available at 740+ score to make sure that it makes sense for you financially.

GL!

[H-B]

There are lender who can offer mortgage on this score but  I would say work on your credit score to improve so you will get good interest rate. 

[Mortgage-Specialist]

Many people are getting lower interest rates with a 580 score than many people on this site are receiving with 620 scores. I wish this were not the case. I believe that many buyers are so happy to get approved that they dont pay attention to their lenders offer (points and rate)

[CreditInspired]

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if@light_in_Spanish wrote:

So My lease may not be renewed because I got married and the rental is income restricted. I wanted to wait another year before buying, but  rentals are actually higher than buying a modest place. I have 20k saved and want to purchase a place beteen 130 k to 145. My income is 75k alone and 120k with husband, but he cannot be on mortgage because he got a new job 5 months ago. The mortgage broker said that my Fico mortgage mid score gets to 580 or more I can get a loan. He gave me some tips and so far scores went up to 579, 608, 587. Some paid accounts have not report it yet, but he said I will be ready in a couple of weeks. 

Has anyone done a mortgage with a score  under 620? I do not want a weird supprime mortgage

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If DH job in same field (total 2 yrs in same field) that counts. 

[Revelate]

That’s what I was wondering too: new job in same field shouldn’t be a deal breaker unless converting employment types and talking common mortgage products.

[light_in_Spanish]

After doing Some research, It seems that a 580 is the lower for an FHA and that since an FHA is federally insured there is no need to increase the interest rate. Unfortunately some lenders may take advantage of not too savy buyers and give the a higher interes rate on an FHA.  Also most lender prefer 620 (especially bigger banks) or higher for an FHA, but that doesn't mean that is the minimun required.  I also did a research on the broker and it seems he is legit.  If after being pre approved,  I see a rate that is higher than normal, I will question the lender and keep looking. By the way my mid score has gone up to 611 so far

[Anonymous]

This is my personal experience. I have a middle score of 597. I finally found a loan company that would give me a shot. I'm also self employed which complicates things a little more. Im currently in contract with a closing date of April 30th. The loan is for 200,000 . The interest rate offered was 5.75 for a fha fixed 30 year loan. I was charged $2000 in points (rip Off) I was also giving a high $8000 closing  fee which the seller agreed to pay. If i wasn't in desperate need to move I would definitely wait to increase my score before purchase.

[Anonymous]

I had a score right around 580.  I was renting to own and locked in a home purchase price 3 years ago when the market was low so I lucked out. I would have waited to raise my score but my lease was ending and I needed to either purchase or move. Since we had such a low purchase price we decided to try for a mortgage and I went with New American Funding. I have a 30 year fixed FHA Loan at 5.25%. Downsize is the PMI needed for FHA but I will refinance in a year or so as my scores continue to rise. I have been with New American Funding for just about a year now and have nothing bad to say at all. They have really good ratings too.