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FHA Loan Below 620

My current credit scores are in the low 600s and one is at a 586. My debt to income ratio is below 5%. The reason my scores are as low as they are is because of medical bills I have been fighting with my insurance company to pay. I have one credit card that is paid off twice a month and one student loan that I am current on. I paid off my car to get my debt to income ratio down but now because of the medical bills (two of them) my score dropped. Is it still possible for me to be able to get an FHA loan?? Any information would be great.
  • February 10 2011 - Midland
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Answers (7)

I have lenders that go as low as 500.  If your score is below 620, then your credit risk, re-established credit in the last 12 months, income, and assets would need to prove that you can handle a mortgage payment currently and pay on time. I am happy to provide guidance, please let me know.
  • August 07
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  • February 16
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Did you find a lender who will take scores on FHA loans under a 620 or even a 600?

  • January 31 2013
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PrimeLending offers FHA loans for borrowers with credit scores 600 and above. FHA Loans for Credit 600 and Above for Texas borrowers and clients nationwide.

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Top 10 Reasons to Choose an FHA Loan
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  • November 04 2011
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It is unfortunate that medical bills have impacted your scores so dramatically. There are a few lenders that will consider FHA loans with scores in 500's, and though most files would not fit their overlays it would appear that yours would. If you would like a referral let me know.
  • February 10 2011
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It is a case by case decision, but there is atleast one company that I am aware of that will allow for credit scores of less than 620 on FHA loans, but you cannot have any late payments in the last 12 months.  If the medical bills report as late payments, I am not aware of a lender that will help.  You will want to find a trusted lender that can help you work through the process.  Be aware, that because of your scores, the interest rates available will be slightly higher than the going market rate.   

Best of Luck..  
  • February 10 2011
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lilAngel7k,

It is possible.  I represent a lender that will go down to as low as a mid 600 FICO score.  However, each FHA loan is approved on a case by case basis so there is no guaranty it would be approved.  Feel free to email me offline if you want to talk about your situation.

Good luck!
  • February 10 2011
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