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FHA LOAN WITH 590 score

I have a contract on my home...I am looking for a new loan and have been told that I cant do anything till that score comes up.  I see all this stuff that FHA is 580 and above with 3.5%down.  We have a great employment history and make really good money.  great 401k's and are working on the score now.  Not closeing till April but would be nice if we could get set up before then. 
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January 03 2011 - Plainfield
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There are lenders that can do 580+ credit scores on the FHA program but you will find that the rates and fees are going to be quite a bit higher than if you had a 640+ credit score. I would love to take a look at the credit and work with you to figure out what can be done to help improve your score. Last month I got someone from a score in the 560 - 580 range up to 660 in about 15 days. Feel free to give me a call. I am in Naperville.
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January 03 2011
Many Lenders put overlays (their own restrictions) on top of HUD's (FHA) restrictions, so this makes it a bit more difficult for borrowers.  Most raised their minimum fico scores to 640+, but there are a few whom accept lower fico scores.  Like Brian mentioned, there are price adjustments for the lower fico scores.  If you can raise your fico score, then you will have more options and better pricing.  If you're closing in April, then you will have some time to raise your score.  Find a good Loan Officer, whom can help you with raising your score, and you'll fare much better.  Best of luck.
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January 03 2011

I know of a lender that will do fha loans with scores of 580. But thier fees are very high and they charge you the maximum rate possible. Since you aren't closing until April I would recommend working with a local lender and have them pull your credit.  Some times the lender can assist you and have you payoff a few items or pay down a few items and your scores will increase. Other times we may refer to to a credit repair company that can legally help you get some of the items removed from your credit report. I have seen these companies get medical collections removed in the past. They typically charge a fee of about $400.00 to assist you with getting your credit repaired.

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January 03 2011
Very, very smart to get a jump on this now.  Those lenders working on 580's aren't even remotely competitive in terms of rate or fee.   

Specific to Frank's comment--the FTC has weighed in on these credit repair organizations countless times.  The answer:  While it is theoretically possible to run a LEGAL credit repair organization, the FTC has stated that they have yet to see one.  The minute they charge up-front money, they're violating the law. 

I'd suggest you figure out what you need first.  A 590 can mean as little as optimizing a few tradelines or it can require a whole new vocabulary of good will deletions, disputes, and so on. 

Where are you getting the 590 from?  Is that from a lender or a monitoring service? 
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January 04 2011
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It was from my fico.com...Free credit report was wrong i guess...also had a local bank tell me it was a 601.  Quicken is working with me to get it up higher and I just made some good payments on my credit cards.  Thats whats hurtting me is they were close to the limit so I guess weill see what happens at the end of Jan.  Thanks for the replys
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January 04 2011
Not every lender lender is has high fees for credit scores between 580 - 640. I know a lender that offers their customers very good rates and the same fees as the borrower with 640+ scores.
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January 05 2011
You are making the right move by jumping on this now, because these types of deals typically take longer. As for these fees, I know of a company that does this type of financing, but not sure why everyone says the fees are much higher
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January 17 2011
I know a lender that offers very competitive rates for borrowers with a 580 credit score and the same fees as the borrower with 620 credit score.  Not all lenders are charging very high rates and fees.  Please contact me and I'll share the information with you.
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January 17 2011
Check with Wells-Fargo. They just came out with new programs.
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January 24 2011
Yes Bob,

They just changed. The minimum FICO went up, from 620 to 640 and 640 to 660 on jumbo conforming. ... Happy funding, Rudi.
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January 24 2011
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Wells  Fargo new "purchase" program is people can qualify with a score of 500 or above.  Only purchases, not refinance.  That is in Tennessee anyway.

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February 03 2011
Increasing your score 60 points in 15 days is rare and is only possible if you have maxed out credit cards and you pay them down to zero. If that is not the case you can get a home loan with as low as a 580, why wait to increase your score to get a better rate when rates are going up everyday by the time you increase your scores your rate will be the same, it's a catch 22.
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July 23 2013
 
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