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FHA Loan with 530-540 credit score???

I am a first time home buyer in TN. I have found the house I want it is $150,000.00. I want to get an FHA loan but the problem is I have a credit score around 530- 540. Can anyone help me with who to talk to or where to go for this loan???

Garysnober's picture
Garysnober | Joined: March 17, 2009 12:22 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi bhurd, Getting a fha loan with a score of 540 would be very hard as the min score is 620 right now.

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

bhurd, you are in a situation that's going to require you to wait. you need to do whatever it takes to bump your score up to the 620 range if you wish to obtain a loan. the only other potential solution is to seek a usda loan. these loans are restricted to certain locations, and you can check that out by determining whether your locale is within the boundaries that the usda services. if you are looking at an urban property, you can pretty well assume it won't fit.

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Garysnober's picture
Garysnober | Joined: March 17, 2009 12:22 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Any reason why your score is so low? If you have some time before your gonna purchase a house/land. Then this can be fixed in a timely manner if you do things right. A little more info about your credit/score and i would gladly point you in the right direction on how to achieve this score.

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harry.wallace.07's picture
harry.wallace.07 | Joined: August 25, 2009 10:01 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

hi,

A 540 credit score is BAD credit. Most banks have a 580 minimum before they will consider you for an FHA loan, because the default rate, if your score is lower, is very high.

Pull your own credit, pay everything on time for at least 1 year, you'll probably have credit scores of over 620, which will get you some decent rates.

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

why is this godaddy nonsense on here?

yeah harry, 620 will get "decent rates" now....but beware a change in guidelines...they haven't changed lately, but i wouldn't put it past fannie/freddie or fha to change again in the not-too-distant future.

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catharin9's picture
catharin9 | Joined: July 14, 2009 09:41 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

WITH 540 CREDIT SCORE YOU WILL NOT GET ANY FHA LOAN.

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catharin9's picture
catharin9 | Joined: July 14, 2009 09:41 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

May i know who is giving you FHA Laon?

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

if you go with a usda loan can you use a middle credit score of 540 to get approved..me and my husband is trying to meet the deadline before the end of the month

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

Sugar bear, I know that USDA has a lower threshold for scores, but they're still looking at 620 as a kind of a base number. With a score like yours, they're going to be looking at a lot of factors that created the score, such as recent delinquencies, any liens, [url=http://www.mortgagefit.com/bankruptcy.html]bankruptcies[/url] or foreclosures in your record, collections, late rental payments, etc.

If your record is reasonably clean in the past 12 months, you may have a shot. Contact a lender that offers USDA loans in your area and have them analyze your credit.

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

I can help. I have a lender that will go down to a 530 Credit score on an FHA loan for a purchase or [url=http://www.mortgagefit.com/refinance.html]refinance[/url], Now there are certain criteria that you have to meet, but nothing way to difficult. Give me a call [color=Red:3e434a42bb][Phone number deleted as per forum rules][/color:3e434a42bb]

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

ToddRichards, do you have an email?? My husband and I need a loan also. Our scores are 540-560...

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi AMorris!

Welcome to forums!

In today's market situation, it will be difficult for you to get a FHA mortgage with a credit score of 540-560. You should have a credit score of 620 in order to get a FHA mortgage.

Feel free to ask if you have further queries.

Sussane

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

It has been a little over a week now since our home burned down. We were in the process of buying from my husbands Aunt. With the insurance money we will pay off the balance of what we owed and use the rest to put down on a double wide. My question is what lenders will approve us? my score is a 539. My husband doesn't have score. He has always paid cash for everything. We have some credit references but other than that he has not built his credit. We have a good income. Right now we are in a hotel and we have 4 kids ranging from 2-15. We need to get a home but need help in finding someone to work with us! Any suggestions?

[size=9:b3751ece9b][color=Red:b3751ece9b][Email address deleted as per forum rules. Thanks.][/color:b3751ece9b][/size:b3751ece9b]

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi TRohrer,

You can apply for a FHA loan as you have a credit score of 539. You should contact the local FHA lenders and apply for a mortgage.

Thanks

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

is it possible with a 530 score to do a refi cashout or a deed secured loan in alabama home is paid for

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Kevin,

Any kind of loan will not be possible with a credit score of 530. You will have to improve your scores and then look out for a loan. To improve your scores, you can check out the given page: http://www.mortgagefit.com/credit-rating/credit-repair.html .

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