I am in the mortgage industry and do alot of these loans. There is no minimum credit score, however, the underwriters do look for common sense loans. Basically, if someone had an isolated period of bad credit with good reasons in most cases these loans will be approved. However, no credit score requirements does not mean they will approve just anyone. Alot of lenders do however try to shy away from less than 580 off the record. Also, mid 500's and up might get an automated approval which the underwriters love because it eliminates there responsibility on the decision. Good luck Dimitri Efx - 623 Exp- 586 Tu - 660
I went FHa and closed in April, our Mortgage lender told us they are generally looking for people with a 620 or better.
FHA doesn't look at score. They go by history. Find a lender(usually not a bank) that uses only FHA's requirements and you're fine with a score in the 500's. You need 1 year of perfect credit or 2 years of perfect credit if you've had a BK. There are other things that are considered like job, income, etc, but not scores.
There is no scoring used AT ALL in fha loans. My scores where 702(EQ) and 560(TU) and not obtainable (EXP) , when I appied in 4/01. I think this proves that scores do not matter in FHA decisions. They only would use scores for conventional loans. I simply had to write a paragraph explanation for each negative item. They look at no NEW bad credit mostly. If you havent had any negatives in 2 years and you dont have any outstanding OWED balances on bad debts you are fine. btw: my loan was for $160K Go For It!
I just went through this. My broker told me rule of thumb was 620 to avoid lots of paperwork and explaining. She also said that with less than 620, you could still get an FHA loan if you had the stamina for their paperwork requests. As far as the FHA down payment goes, it is the same no matter what your score is. If you are approved, all rates are the same. So, if you have an 800 score or a 580 score, if your approved your rate will be 7.25% and your down payment will be 3%. The only exception to this would be if you have current outstanding debt issues that would preclude it. For example, I have a friend that was forced to put 10% down on an FHA because they had tons of unaddressed charge offs, lates pays, repos, etc. I don't know what their score was, but they were approved. The only requirement outside the norm was that they put 10% down. The house they purchased was about $110K.
Please this is for anyone with decent credit do not get and FHA loan. You cannot pay the loan off early they will not let you. And I believe you are locked in for 33 1/2 years. My husband and his ex-wife bought a home through FHA. The home was only $42,000 and not worth in my opinion $25,000. His payments were $326.00 a month but add that up over 33.5 years and you get $131,052.00. This was about 7 years ago when interest was a little higher but even at 8 something % that is what he was going to have to pay back.
Doesn't FH have a maximum amount you can borrow from them??? Can you finance a 300K house with an FHA loan? If I am not mistaken, the answer is no, right?
Lieutenant, You can pay off an FHA loan early. I don't know you gave you this information, but it is incorrect. If you put less than 3% down on a home, there is a prepayment penalty if the home is sold before seven years. If you put more then 3% down there is no prepayment penalty. FHA is a great way to purchase a home, if you're a first time homebuyer or a person with no so great credit. There are several other programs that work as well, 80/10/10 or 2/1 buydown, but FHA allows many who cannot afford the 20% downpayment required for most conventional loans a step toward the American Dream. Dani
FHA limits are set by state and then by county. They attempt to adjust the max price to somewhat of a benchmark for a particular area. The theory is that if they said $100,000 max for an FHA loan period. That might be okay if you lived in Kansas, but it wouldn't buy anything in California. Each max is individually set. You can go to the FHA website and find out what the max is for your area. In my area of Texas it is about $140K. I have never read anything to indicate that you can't pay off an FHA loan early.
I had an FHA refi that I paid off in 7 months. No prepayment penalty at all. I was lucky it was FHA, I would have had a penalty with most conventionals (or so I was told).
I got a FHA loan in February with 580 scores. I have a 20 year FHA, which I put 2.5% down. There is no pre-payment penalty on the loan. I am not sure what you are talking about, Lieutenant, maybe HUD?
I received aspproval in january for the American Dreanm program at that time my scores was 620. They approved it so fast they were setting up closing before I even knew it. They ask oifr one letter of why I had an unexplained deposit of 1700.00 that was it even though I had a charge off and two late payments from sears and five from target ( all removed now) . Ihad to put down 2% and a firsttime home program put down the other 1.5%. 6.8% interes rate No PMI payments no prepayment penalties The american drem is like wheda or so my lender told me. Check in your areas fro first time home buyers program.
Sorry, I guess my husband didn't know what kind of loan he had with his ex-wife on their mortgage. He told me it was FHA. So if it was not FHA then could we get a loan with them. He filed BK on the other mortgage after he asked me to move in there. LOL (I dont think so)
There are loans that have a "5 YEAR PROMISE"...you promise to NOT refinance for 5 years...BUT after 5 years...FINE...I have NEVER SEEN A 30 YEAR PROMISE...
