Mortgage Planner, Evergreen Pacific Mortgage, A division of Stearns Lending, Inc.
1 year ago
There a actually two answers to this question. FHA guidelines allow you to get up to 90% financing with a credit score from 500 to 579 and full 96.5% financing from 580 on up. This does not mean that FHA does not have standards, only that FHA recognizes that there are people with low credit scores that have acceptable credit history. The second answer to the question revolves around what you can actually findin the market place. Most lenders place higher minimum scores on their loans than FHA requires. Most lenders require at least a minimum of 620 credi scores to originate an FHA loan, some still require 640 or higher. There are a few lenders out there however who still lend to borrowers with lower scores. These loans are typically portfolio loans that have a higher rate (typically about .5 over market) but the lenders use FHAs rules rather than those placed on them by the secondary market. We work with a lender with a great FHA protfolio product. The lender is picky, and it's not a simple process but they get the job done. I hope this helps.