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FHA Loan Approval OK Credit

Me and my husband are first time home buyers. Our credit is 520 or higher. We re looking for a FHA to VA loan; as my husband is a Veteran. The question is can we be approved for a loan with this kind of credit score? We have 3.5% to put down on a home. Any advice and guidance is appreciated. 
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April 19 - Clarkston
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Answers (6)

Technically, VA does not have a fico score requirement, however, most banks have overlays and require a 580 credit score. My bank currently goes down to a 550 credit score for both FHA/VA loans. A lot depends on what disputed accounts and what is currently derogatory on the credit. There are several ways to boost your credit and get in to a home. I suggest researching a good lender and you are more then welcome to reach out to me through Zillow for some good direction. Good Luck!
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April 22
I have a NO FICO FHA program, but I can probably get you approved VA for 100% financing.  Please pass along my thanks to your husband for his service and feel free to give me a call.

New American Funding is a Direct VA Lender and we do not have overlays.  Furthermore, we will do a manual underwrite most likely in this situation.

I will need to get some further information, but we make exceptions to FICO requirements everyday!

NOTE: I'm on PST in California.
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April 22
The lowest scores that lenders are able to do for FHA and VA loans are scores of 580. Since your scores are below 580, you will have to work them up to 580 or above if you want to have a better chance at obtaining a mortgage. The simplest ways to fix your credit is to pay off your debt and revolving credit balance on time. The best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!
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April 21
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WHAT ABOUT WHEN A PERSON ON DISABILITY WHO HAS BEEN APPROVED FOR HOME OWNERSHIP PROGRAM AND HAS GUARANTEED MONEY FROM THE STATE FOR PAYMENT TO MORTGAGE?
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April 20
First and foremost what is your timeline? If you have 30-90 days, I would encourage you to boost your credit score therefore taking the handcuff off the Loan Officer. If we can kick your score a few more points, the process will definitely be to your advantage. There are some sure fire ways to accomplish that. Let me know if you would like assistance.
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April 20
Profile picture for Dan Tabit
Potter,
First, how did you obtain your scores?  Consumer obtained scores are often different from those a lender gets.  A lender will use the middle score of the lower scoring borrower. 
Assuming your score is correct, I'm not aware of any FHA options below 580.  Even then, not all lenders do these loans and they require 10% down.  Even if you get that score or higher, there are no guarantees, as it takes more than a score to get approved. 
My advice is to meet with a great local lender, ideally one who assists with credit repair.  They can look over your complete application and credit report and suggest ways to improve you situation.  You'll leave with a plan that will have you buying sooner than if you wing it on your own. 
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April 19
 
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