I keep hearing people here say that FHA doesn't use your FICO anymore? Can someone tell me since when? When I bought my first house, the mortgage broker specifically spoke of scores. This was in late 97. Also, can someone who's gotten a FHA mortgage as of late, tell me if your scores were used? I'm looking to get a house (again) next year (October). Just trying to get my ducks in a row. Thanks!
Shantel, When hubby and I were preapproved last month they definitely used our FICO scores for our FHA loan. That played the biggest part in helping us to attain preapproval through Freddie Mac. Although, we have a pretty decent household income we have some hefty vehicle payments which made our debt to income ratio almost 45%. Our mortgage broker pretty much stated that our scores are what allowed to get our home. Dani
Dani, Did they pull your credit reports again prior closing? I was just approved by the automated underwriting system and am scheduled to close on Sept 3rd. Thanks for your response!
Shantel, Scores do play a big part, but if your debt is low they don't carry as much weight as other factors!
Sph88, I haven't closed yet. My closing date is scheduled for November 30 because our house is still being built. Our mortgage broker told me that they would pull the report again prior to closing, as well as, rechecking our pay stubs and bank statements. I think they pull the report again just to make sure you haven't accrued any new debt. Congratulations on your new home. Dani
FHA isn't score driven, they do use your score, however they also look at the whole picture and consider other factors as well, front and back ratios and your last 24 month history. I have known many that have gotten FHA and their scores were not great but their ratios and past 24 months met the requirements.
