OfflineI just got done talking to a mortgage broker who thinks he knows everything. He told me that there was no way that you could get an FHA loan with under a 620 FICO score. I had to tell him he was wrong. In fact, FHA will offer loans all the way down to 500. You have to be 580 and above to get maximum financing but 579 to 500 allows you to get a 90% loan. The problem is that the banks are allowed to apply a credit profile overlay. Most banks use 620 or 640 instead of the 580 minimum as that is a decision they made, not FHA. Anyway, for those that want to read the rules, here it is:
http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-29ml....
Hope this info helps. If your bank doesn't go down to 580 (or go down to 500 if you need it), shop around as there are some banks that will use the amounts allowed by law.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
Thank you for this information. This will help a lot of us struggling new investors with poor credit.
That's wonderful. Good info.
Bill,
I believe these are guidelines provided by the FHA, but not necessarily a requirement for the banks to lend based on those scores; and I don't see why they would want to make any more risky loans...
It will be nice when all this mess is behind us, and I've bought many properties today
Learning and progressing every day,
Valerie
Valerie
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