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Posted: Mon Feb 23, 2009 5:03 pm Post subject: mortgage

Hello. Is it true that you can get an FHA loan with low credit score right now? I'm working with someone(credit repair company) to negotiate collections and charge offs and scores have increased slightly. However, when I talk to National City, Credit Union, etc., they tell me I would have to wait about 1 to 2 years. On the other hand, I have a broker I am working with who tells me that regardless, if I get my scores up to 580 he could get manual underwriting. What are your thoughts on this?

smithsussane · Posted: Mon Feb 23, 2009 8:29 pm Post subject:

Hi Guest!

Welcome to forums!

FHA loans are available to borrowers who have a low credit score of 580. But in order to get a loan with such a low credit score, you should not have any kind of late payments or collections in your credit report. If you have late payments or collections in your credit report, you will not get the loan.

Feel free to ask if you have further queries.

Sussane

msnover92571 · Posted: Tue Feb 24, 2009 8:07 am Post subject:

Yes FHA is accepting people with low credit score at a low of 580 but there are other factors as no late payments, work history, and a down payment of 3.5%

gmakerley · Posted: Tue Feb 24, 2009 9:00 am Post subject:

if your credit score hits the 580 mark, you will have to do the following prior to closing on a mortgage: ensure that all past-due payments/charge offs have been paid; write a very nice explanation letter covering the reasons for your delinquencies of the past and your intent to never go down that road again; be able to demonstrate that you can afford the loan you are seeking based on work history and current income; have sufficient assets to do the deal.

beware, however, as it appears that score requirements will be increased any minute now. a better goal to shoot for in the not-too-distant future is a score of 620.

msnover92571 · Posted: Tue Feb 24, 2009 9:02 am Post subject:

Hi George, Im sitting around 600 as i checked my credit report about a week ago. Do you think i should keep trying to boost it a few more points to close on in the 620 mark? Thanks

gmakerley · Posted: Tue Feb 24, 2009 9:21 am Post subject:

actually, based on what i saw yesterday...yes.

msnover92571 · Posted: Tue Feb 24, 2009 9:24 am Post subject:

Ok and what did you see yesterday, if you dont mind me asking? Smile

gmakerley · Posted: Tue Feb 24, 2009 9:24 am Post subject:

that 620 is going to be a requirement

msnover92571 · Posted: Tue Feb 24, 2009 9:25 am Post subject:

For FHA loans? Is this applicable in all states? And did this take effect yesterday?

gmakerley · Posted: Tue Feb 24, 2009 9:36 am Post subject:

it may only be internal here, but yes, yes, and yes.

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