We are trying to make a home purchase. My husbands mid score is 602 and mine is 580. We have 2 strong co-signers available. We have been unable to find a bank that can do an FHA loan with our credit scores and they will not do the FHA loan with only our co-signers as it will not be their primary residency. The previous bank we were working with said they could do a manual underwrite with our credit scores but after 4 extensions on our closing date they now say they cannot. Can anyone help this situation or do we need to walk away from the house? We are located in NH.
Plaistow,NH | Sep 8th 2010
by sclouti...
Answer
by adennie
Our minimum credit score for FHA is 620. What I would suggest is that you raise your score by 20 points to qualify. This is usually accomplished by paying down some high credit cards you may have to 30% or less of the credit limit. That should do the trick but I would not know without viewing your credit report. Please send an email to adennie@fmbranch.com if I can be of further assistance. Thanks. Sep 8th 2010
by Joe Shamie
by lmckenzie
Currently FHA does not have a minimum credit score requirement. The individual lenders that you select all have their own predetermined credit limit that they will lend on; typically 620.FHA beginning October 4, will now be implementing changes to their credit score and minimum down payment requirements.New borrowers who would like to obtain maximum financing (3.5% down payment) will now need a minimum credit score of 580.If you are a new borrower and your credit score is below 580, you will now be limited to 90% low to value, or 10% down.I would suggest you find a local originator who would be willing to help you raise your credit score. This is usually free and can be done through a product called rapid rescore.Good luck.Lynda Sep 12th 2010 |
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