Our Company is a direct lending mortgage bank in 47 states who happens to do FHA insured loans forborrowers with mid fico credit score down in the 500s. However, we can allow for 3.5% down paymentonly with a 580 score or higher. Otherwise, you must put down at least 10%. The reason we can do it is becausewe have a rating system of your strengths as a borrower wherein the credit score is number 5 on our listof important qualifying criteria. Please do email me for more information. I can hook you up with a licensedand experienced FHA specialist in your area. We handle each other's borrowers from out of our own states,and my territory is California, but again, I will glad to get you set up with a professional in Florida.As to rate for 580 to 639 FICO scores you can get just half a point higher than the standard FHA loan. Soif one gets 3.75% on a 640 or higher score for a 30 yr. fixed, you can get 4.25%. I thought it was amazing i could do rates down in the "5s" several years ago when it was the lowest rates in 40 years!Apr 17th 2012
There are lenders who will go to 580 FICO score but you will pay dearly in the rate and fees for this type of loan. My advice, go to a reputable credit repair company and get them to help you raise your score to 640. Most lenders will except 620 but you will save money if you can get your score to 640. It may take some time but with persistence you can do it. Most states have non-profit organizations that will help you with credit repair and give you guidance on good financial habits. The non-profit in Utah also has a down payment assistance program. Good luck.Apr 17th 2012
There are lenders out there that will go down to 500.. The rate is a little higher, but there is a loan product.. the real questions is... why is your credit scores 588 / 546? Depending on what type of credit is lowering your score is the real issue. Best advice I can give you is to contact a LOCAL mortgage broker, not the local "Big" bank, and certainly not one of those 50 states internet lenders... the LOCAL broker is familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.comApr 17th 2012
Yes, there are lenders that will accept you, but it's not really about the score, its about what is in your credit profile that is creating the score. Your best bet is to work with a local Mortgage Banker/Broker to find out exactly why your score is where it is. You will probably find that certain items in your credit profile will have to be resolved. In turn, resolving those items will probably bring your score up to a level that allow you to obtain the best interest rates for an FHA loan. Make sure you 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.comApr 17th 2012
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