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Can we get an fha loan?

My husband & I are hoping to purchase our first home. His score is around 620, while mine is around a 700. We both have late payments on our credit history, but have been up to date on everything for the past 2 years. Would we be eligible for an FHA loan with the low down payment?
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May 18 2012 - Tower Grove South
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Answers (6)

@ Andrea, several lenders will do an FHA loan with a 620 Fico middle score. If your husband has credit card balances over 33% of the credit limit then try to pay those down to 33%, this will have a big impact on your scores if he has a maxed out card(s).

Look into HUD's " Good Neighbor Next Door " Sales Program, if you find a HUD owned home you like you can buy it for 50% off HUD's appraised value. Some HUD owned homes need extensive repairs, some only cosmetic or new carpeting, etc, so I recommend searching your area for HUD owned homes to see what is available. If you go that route find an experienced Buyers Agent that knows HUD's process. See this FAQ HUD link:

  http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/reo/goodn/gnndfaq



  
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May 19 2012
Hello Andrea, 

You would be able to qualify for a FHA loan with your credit score. In some cases your husband's credit score would qualify as well, but the down payment and interest rates would be higher. I would consult with a lender to find what you and your would qualify for. 
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May 18 2012
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I have a similar question. My wife and I were pre approved for an FHA loan for around 450k, our offer was accepted on a home last week and we have now selected our lender, locked in our rate/deal and are preparing our paperwork to be submitted to the underwriters. The issue is there are 2 items that the mortgage broker flagged as potential issues. One is a collection account for about $900 that was last active almost six years ago and another is an account that was a charge off that shows about a $2500 balance also almost six years ago. I'd like to know what impact these are likely to have on our final approval/closing? Is it possible the underwriters will look past them b/c of their age? Or at least, is there a chance we can wait to see what they decide and see if the make clearing them up a condition for closing but not necessarily a disqualifying issue? Any insight would really be appreciated. Thanks



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May 18 2012
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We're only looking for $80,000 or less. He is a police officer so we have to live within city limits for at least another 4 years.
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May 18 2012
You absolutely can qualify for FHA financing with those scores, especially if you haven't had any late payments in the past 24 months and have at least 2-3 open tradelines. Hope this helps!
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May 18 2012
How much of a loan are you looking for?  Your husbands credit is on the low side, many lenders have a requirement of 640 fica now days.  There are still some lenders that will consider but I do not know of any. 

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May 18 2012
 
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