Score For Best Rate

[Anonymous]

On FHA loans what mid score do you need to get the current market rate without being penalized for having a lower score?

[Imperfectfuture]

Depends on the lender overlays.

[GirlMelanie89]

Imscangel17, one LO said I would need a 680 for market rate. Since I only have a 634, I was quoted 4.125% which seems really high for an FHA. Another lender said he could get me a 3.75%, but seeing as that he's the only 1 out of 4 that quoted the lower rate, I am definitely skeptical.

[Anonymous]

Hopefully I can get there by the time I'm ready to app! Mid score is at 671 right now with a paid charge off and some lates that I'm trying to get removed.

[StartingOver10]

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@GirlMelanie89 wrote:
Imscangel17, one LO said I would need a 680 for market rate. Since I only have a 634, I was quoted 4.125% which seems really high for an FHA. Another lender said he could get me a 3.75%, but seeing as that he's the only 1 out of 4 that quoted the lower rate, I am definitely skeptical.

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^^^This is a very high requirement for FHA.  I use lenders that require 620 to 640 for market rate.  I haven't seen any at 680.  I think there might be something else going on - lender overlay or something with the file. IIRC GirlMelanie has a major derog within the last 2+ years.  Not that that is an issue  but it may very well affect her individual file. GirlMelanie - correct me if I am wrong about the derog. Just trying to give perspective

[Anonymous]

StartingOver- is there a website that you recommend to track the daily FHA market rate?

[GirlMelanie89]

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@StartingOver10 wrote:

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@GirlMelanie89 wrote:
Imscangel17, one LO said I would need a 680 for market rate. Since I only have a 634, I was quoted 4.125% which seems really high for an FHA. Another lender said he could get me a 3.75%, but seeing as that he's the only 1 out of 4 that quoted the lower rate, I am definitely skeptical.

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^^^This is a very high requirement for FHA.  I use lenders that require 620 to 640 for market rate.  I haven't seen any at 680.  I think there might be something else going on - lender overlay or something with the file. IIRC GirlMelanie has a major derog within the last 2+ years.  Not that that is an issue  but it may very well affect her individual file. GirlMelanie - correct me if I am wrong about the derog. Just trying to give perspective

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Hi StartingOver10, I thought it was as well. Yes, I do have a recent derog, late payments post BK 15 months ago. But even the 4th LO quoted a 4.125% without knowing that info. Im still waiting on LO 1 to tell me if he really can get the 3.75%. If he cannot, I am going to try for a construction loan which would allow 6 months to build the home and 6 months to get past the 640 threshold.

[Anonymous]

It depends on the lender. While FHA is much less sensitive to credit score, it still has a minor impact. For example, we have different FHA rate brackets for 600-639, 640-679, one for 680-719, and one for 720+. The differences in rate are about 1/8% per bracket - much less impact than conventional loans.

[ezdriver]

This week, my inside lender is quoting 3.625% for 30yr FHA loan. A 620 min is required. Rates, terms and guidelines vary by lender.

[Anonymous]

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@Anonymous wrote:

It depends on the lender. While FHA is much less sensitive to credit score, it still has a minor impact. For example, we have different FHA rate brackets for 600-639, 640-679, one for 680-719, and one for 720+. The differences in rate are about 1/8% per bracket - much less impact than conventional loans.

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To confirm that I have this right in my head... a higher score for FHA doesn't affect the rates much but it would help get me past any lender overlays and make the process easier with being self employed, correct?