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Company Loan Type APR Est. Pmt.

FICA under 580

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

larry2's picture
larry2 | Joined: June 27, 2007 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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,
Larry

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:42 | Post subject:

Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:42 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:42 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:42 | Post subject:

charles.armbruster's picture
charles.armbruster | Joined: October 12, 2006 04:26 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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!

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:42 | Post subject:

brian1's picture
brian1 | Joined: June 14, 2008 05:14 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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
Brian

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:42 | Post subject:

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