it's possible, but recent changes to FHA's guidelines will make it much more difficult... collections have to be paid or in repayment for at least 3 months to qualify, and lender overlays say you cannot have any derogatory credit in the past 12 months... nothing.. not one bad account or late payment... and with a score below 580 you will need 10% down... Contact a local mortgage broker... he can look at your complete profile and guide you from there... WilliamAcres.comMar 26th 2012
Dear Homebuyer, William aswered your question about as well as anyone could. With that score, you have to be prepared with10% down and good compensating factors (some of which you stated, rental history, good income etc...) If the down is not possible, you will need to see if there is any way to raise your score as fast as possible. Best of luck to you. Michael-Eiden.comMar 26th 2012
With the new guidelines that start April 1st, it will make it very difficult for you to get approved if you have any collections on any of those accounts.Divorce is never a reason to stop paying personal debt. You will required to pay off any collections, including for the first time, any medical collections that are outstanding on your credit. You can try and set up some sort of payment plan with a creditor, but you will need to show min, of three months of payments. Get with a local broker that can pull your credit, and go over with them a game plan that can hopefully put you in a home sometime in the future.Mar 26th 2012
Actually, you may be in better shape than you think you are. You are correct; your score is just a number. What is actually being reported is just as important. In fact, in many cases, more important. Sometimes a few small fixes to what is reported can have a huge impact on the score. My advice is to contact a local Mortgage Banker/Broker, rather than one of the big banks. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. He/She will have access to loan products of many lenders, not just those of one bank, and can properly guide you. But more importantly, He/She is trained to take a look at the various different options available to you and guide you into the one that makes the best sense for your situation. This would include what you need to do to get your score wher it needs to be to get the best possible pricing.. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.comMar 26th 2012
I have a program down to a 530 FICO. That alone doesn't mean the deal can be done. I would have to take a complete application to identify any item that may hurt your chances. To start with I need 12 month verified rent history, 3-6 months reserves (6 if there are gift funds), aggregate collections over 1000.00 will need to be paid, and the debt ratio needs to be no higher than 45%.I just saw you are in OR. I loan in FL only. I may not be able to help you personally but may be able to point you in the right direction.Steve Verrier, www.thefloridamortgagecenter.comMar 27th 2012
Confirming what others have said above, it is technically possible to get a FHA loan with a 570 score but only with 10% downpayment from your own funds. Depending on the reasons for your low score the few lenders that might approve an application with that score might or might not actually approve you. Be prepared to provide a LOT of documentation if you move forward. Improving your score is your best option, I can email you some suggestions or check out the web-links on my website http://pdumouchel.primelending.com - most of which are to the Federal Reserve.Mar 27th 2012
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