FICA under 580

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Icon Mini Profile favors

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Post Posted: Thu Jun 12, 2008 10:56 am    Post subject: FICA under 580

Is it true lenders are only taking credit scores of 580 for FHA? I thought they were not score driven. HELP
Icon Mini Profile larry

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Post Posted: Fri Jun 13, 2008 3:32 am    Post subject:

Hi favors.

FHA is not a score driven program but you should have make all the payments in the last 12 months and 2 years of employment history. You also have to show the lender that you have the ability to pay the lender. The FHA approved lenders will also check your DTI ratio.

Best of luck,
Icon Mini Profile Caron

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Post Posted: Fri Jun 13, 2008 6:04 am    Post subject: RE: fha loan and credit score

It's true that FHA loans are not score drivcen but lenders do look into a minimum score - I mean something that would give them a rough idea about your creditworthiness. After all he has to find out somehow whether you are capable of repaying the loan. So unlike conventional loans, it's not 680 and above that they look for, but yes to a score as low as 580. By the way, what's your score like and if you can give me some more details about your financial situation, then may be I can suggest something better.

Just to tell you, i've heard somewhere that FHA's going to consider credit scores may be above 580 from this July itself when it comes to receiving insurance premiums from borrowers. The premiums will vary depending upon the credit scores and loan to value ratio from July 14th.

Good luck

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Post Posted: Fri Jun 13, 2008 6:39 am    Post subject: Fica under 580

Iam a loan officer,but the company Iam with has only a couple of lenders, that they like to use. However this broker has everything under lock&key if you know what I mean. They are asking for scores 580 and above for FHA. My client middle score is 565. Other scores are 6. They turned her down.
Icon Mini Profile gmakerley
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Post Posted: Fri Jun 13, 2008 10:04 am    Post subject:

an individual lender can establish a minimum credit score on an fha loan. in our situation, for example, it's got to be 585 as a rule. if there are sufficient compensating factors, we can have our underwriter review a lower score, but it's got to be a group of strong factors to get through.
George M. Akerley
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Icon Mini Profile charlesarmbruster
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Post Posted: Tue Jun 17, 2008 4:46 pm    Post subject:

FICO score-based applications for FHA-insured products vary by lender. Yesterday, FHA annouced that their insurance, the PMI both upfront and monthly, will be FICO-based, too.

For full 10% down-payment:
A 15-yr FHA-insured product has FICO-based pricing as low as 300 FICO.
A 30-yr FHA-insured product has FICO-based pricing as low as 300 FICO.

For typical 3% down-payment:
A 15-yr product requires 500 FICO.
A 30-yr product requires 500 FICO.

However, the individual lender can limit the lower-end of the FICO scale when taking applications, since they are responsible for the asset they purchase...whether they resell it or not. Currently, 580 is common as the bottom-limit -- fortunately, manual underwriting may allow lower FICO applicants to gain approval. This has helped many borrowers in the past -- let's see what the future holds.

For the time being, ask around -- go to a broker!

Chuck Armbruster
Phoenix, AZ

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Icon Mini Profile brian1
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Post Posted: Fri Jun 20, 2008 7:45 pm    Post subject:

There are still lenders available that will do an FHA loan with less than a 580 score. It had better be a clean file as it most likely will end up in a manual underwrite which means it may take some work and some time but it is not impossible.

Good Luck

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