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Approval odds for FHA loan?

Hey guys, any help will be appreciated and I am also looking for Realtor/REA etc I would like to know from you, the experts, will I get approved for a fha loan or denied- 
1-I have been renting a legal apartment for past 2 years in a apt complex and they are willing to give me a recommendation letter stating timely payments. 
2-My credit score is 610/620/610 for the 3 bureaus, I have one credit card I have been paying on time(never been late) since 2010, I have had a auto loan paid and closed summer 2010(late 3X2006, once 2007) 
3-Read online FHA requires atleast 3 tradelines, I opened a new credit card this month(limit 500), my score went 610 from 660, is that a mistake? Should I close the account? 
4-Added myself to my SO cc and added her to mine. She uses 50% of her limit, will that hurt me? As of Nov we paid that in full. Also added myself to my SO new amex with 2k limit, good or bad idea? 
5-I make 80K, even though I will be solely on the loan/deed, can her income(40k) play a role? 
6-I have 2 collection account from years ago(not mine,disputed) roughly 4K(so they claim)
7-I have few account closed in good standing like home depot, kay jewelers etc due to non-use of them.
  • December 10 2012 - US
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Answers (4)

It sounds like you should be okay, but you will need to shop around with a local loan officer who can do FHA loans with a 610 mid score. Most lenders do require 620 or above, but like Roswell down below there are some good Companies who can go below 620 with no problems. The first step is to contact a loan officer and flat out ask if they can do an FHA loan with a 610 score. I'm sure you will find a good loan officer to take care of you, just do some shopping first and you will find the right one. Good luck and take care. 
  • December 10 2012
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FHA credit history guidelines

http://portal.hud.gov/hudportal/documents/huddoc?id=4155-1_4_secC.pdf

of note: FHA does not require 3 tradelines.

  • December 10 2012
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You will want to remove any "disputes" you have on any accounts as well.

FHA requires all disputes to be removed.

  • December 10 2012
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Yes, from what you laid out here, you should be able to be approved. We are one of the few lenders who will work with people who have a down to a 580 credit score.

I would be sure your credit cards stay at less than 30% of available credit used. This will ensure you have the best credit scores you can get. If you go up to 50%, your score will suffer.

Do not close any accounts.

A verification of rent should act as your third credit line.

You cannot use your SO's income if she is not on the loan.

You should be on your way to be approved for your new home.

Please feel free to contact me directly if you have any further questions, I'd be glad to help. 

All the best, 
Ros 

Roswell Moore, CMPS  
Certified Mortgage Planner 
  • December 10 2012
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