Posted on: 13th Mar, 2009 07:28 pm
I've been hearing a lot about FHA Loans and feel that this would be great if we can qualify. I understand that you need to have a median score of 580+. I'm hoping to reach this destination within 2-3 months. Income wise I think we would be fine it's just my husband credit score that I'm worried about. Once my credit reaches the requirements would we still be able to qualify for a FHA Loan even though his credit isn't good?
My median score is at 556 and my husband score is lower than mine. Our combined salary is at 98,000 per year.
My median score is at 556 and my husband score is lower than mine. Our combined salary is at 98,000 per year.
Until last week... most lenders have upped their FHA Min Credit Score to 620 and a few are even at 640. It is unfortunate, and there may be a handful of lenders left out there doing the 580 but I haven't heard of any left. When your scores do raise over the 580+ mark a local bank may be your best bet at that time.
From an actual credit standpoint, collections can stay open with FHA but you will want to watch your pay history closely on every loan. Of course, that will help your scores as well... and will go hand in hand.
Best of luck!
From an actual credit standpoint, collections can stay open with FHA but you will want to watch your pay history closely on every loan. Of course, that will help your scores as well... and will go hand in hand.
Best of luck!
nathan, fha may allow collections to remain open, but i think we've found that underwriters won't. furthermore, if someone is trying to bump a score up so as to qualify, leaving collections out there to sit isn't going to do much in that vein.
there's still a few lenders who like to take chances, so those with low scores may still have an alternative if they shop around enough. of course, they won't get great interest rates, but that's become the price to pay for low scores and poor credit backgrounds.
i tend to agree with your assertion that a local bank might be a best bet. portfolio lenders tend to use their common sense far more than simply relying on the results of a credit report.
there's still a few lenders who like to take chances, so those with low scores may still have an alternative if they shop around enough. of course, they won't get great interest rates, but that's become the price to pay for low scores and poor credit backgrounds.
i tend to agree with your assertion that a local bank might be a best bet. portfolio lenders tend to use their common sense far more than simply relying on the results of a credit report.
