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Posted: Wed Sep 23, 2009 8:57 pm Post subject: credit score 586, do I qualify?

Can I get an FHA mortgage with a 586 credit score,
Went through foreclosure 1 1/2 yr ago

gunzijjistaff · Joined: 07 Apr 2009 Posts: 712 4.51 Dollars($)

Hi Guest,

Welcome to our forum.

First of all, you cannot apply for any loan after foreclosure for next 3 year. You must have to rebuild your credit history.

You cannot apply for FHA(Federal Housing Administration) with 586 Credit score.You must have to maintain 620 minimum credit score required for get qualify for FHA loan.
Before apply any loan, Try to pay off your previous liens.

You have to wait for more 18 month & you can easly improve your credit score more than 620.

Thanks & Regards.
gunz.ijjistaff

jenkin7 · Posted: Wed Sep 23, 2009 10:30 pm Post subject:

Hi Guest,

I agree with what Gunz said except that one has to wait for 3 years after foreclosure for a mortgage. For FHA loans, the waiting period is just 2 years. It means one can apply for an FHA mortgage 2 years after a foreclosure. However, he must have improved his credit and maintained a good payment history during the post-foreclosure period to get approved for the loan. However, for conventional loans, you need to wait for at least 3-4 years.

Guest

Your credit score is fine for FHA. Each lender has a different credit score requirement. Our requirement on FHA loans is a 550 credit score. The problem you will run into is it hasn't been over 3 years since the Foreclosure. Even though your credit score is FHA worthy, I would take the next 1.5 years to work on your credit. It's truly not that difficult to increase your credit score if done correctly!

[E-mail address deleted as per forum rules. Thanks.]

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1731 35.55 Dollars($)

The requirems for FHA loans were changed in March 2009

As of nwo the equired minimum socre is 620 with 2 years of job history

marklavender1 · Joined: 13 Sep 2009 Posts: 120 -0.14 Dollars($)

The credit score requirement had recently been changed. the credit guidelines had required only a minimum credit score of 580, subject to certain exceptions.

from March 6, 2009, a minimum credit score of 620 will be required to be eligible for FHA and VA loans.

stev998 · Joined: 27 Sep 2009 Posts: 19 -0.12 Dollars($)

Hi guest,
You need to improve your credit score for FHA loan and history .Any past bankruptcy must be at least 2 years old and the applicant must have had good credit for at least 2 consecutive years following the bankruptcy. Any history of foreclosure must be at least 3 years old and followed by at least 3 consecutive years of good credit. You must have had a stable income for at least 3 years and proof that you have paid all your bills. You must be able to make a 3% down payment, which is considerably lower than conventional loans. There is a 2.25% closing cost, and monthly payments must be roughly 30% of your income. You can assume a FHA loan from a seller or pass it on to a buyer. Any cost associated with the title, including the title search and title insurance for the home.
There are also eligibility requirements for the home. Properties that are eligible for a FHA loan include: single-family homes, 2-4 unit properties, condominiums, double-wide manufactured homes and modular homes. Ineligible homes include (but are not limited to) co-ops, boarding houses, commercial properties, hotels, and private clubs. A home is also ineligible if the seller acquired the house within the past 90 days. For any property over 10 acres, the loan will be based on the price of the house and the first 10 acres only. Additionally, the property must be used as a primary place of residence.
One type of FHA loan that has a couple of other specific guidelines is the 203(k) loan, which is used for buying and remodeling a home. The home must be at least 1-year-old and the rehabilitation of the property must cost less than $5,000. These are the requirement of FHA.

Guest

I am under contract for a new home. My credit score is 586 has gone up some during the contract time, but not much. My debt to income is great and alot of the debt I have is old about 2 years of more. My mortgage company said my chance of a mortgage loan are 60 to 40. I had done very thing they requested evening writing letters for each derogotory explaining that all my bad stuff is in the pass. Look at my credit report the bad was only within a 2 year period. Does anyone know if this is good or bad with getting me a home loan.

Niicss · Posted: Mon Jun 14, 2010 1:40 am Post subject:

With a score of 586, you can get a FHA mortgage. However, in order to qualify for a conventional loan, you would require a score of 700-720. Unless you have the required credit score, it would be difficult for you to qualify for a loan.

rita2 · Joined: 23 Apr 2010 Posts: 286 51.03 Dollars($)

Hi Rose,

Niicss is absolutely correct. If you have a credit score of 586, you can apply for a FHA loan. However, I would suggest you to wait for sometime and try to improve your credit score to 650 - 700 in order to get better loan options. If you have a good credit it will help you to get good interest rate, down payment scheme, etc.
Hope this will help you.

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credit score 586, do I qualify?