Close

See current mortgage rates on Zillow Mortgage Marketplace

Profile picture for Silver84

FHA, bad credit question!

I understand FHA allows "bad" credit, but just how bad? My husband  has a 580, I have a 620, but we have about 12k to put down. The home we are looking at is for sale for 76K, What's the best loan option for us? Thanks!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 31 2009 - San Antonio
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (10)

Karin,

with 27 contributions you may not want to go on the offensive. 

You got sucked into a thread that was rejuvinated by a Spammer.  Spam has no place on zillow and the regulars will point it out as quickly as they can...you just caught a little flack for not addressing the fact that the thread is 17 months old and as you pointed out an advice given 17 months ago may not even be valid.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 08 2010

Surely there are many homebuyers out there today in a similar predicament who come to these forums for answers.  The lending world today is different than it was a year and a half ago so it makes sense to contribute fresh, updated information to a classic FHA question, especially when previous information may not longer apply.

I respect your opinion Pasadenan, but with 9597 contributions, perhaps you spend alot of your time as a fault finder on this forum? Maybe you should attack Zillow for posting old questions if you feel they cannot be applicable today. In the meantime, I will continue to contribute to Zillow with positive, meaningful information about my profession.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 08 2010
Profile picture for Pasadenan
This is absolutely crazy!  Why are you telling someone the answer to her question 17 MONTHS after she asked it?

Is that how long it takes you loan officers to fund a loan, or to check underwriting for a loan?  Is that how long it takes you real-estate agents to write a counter offer?

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 07 2010
Since most lenders will require a 620 credit score on FHA, this may not be an option.  However, I may have some other ideas for you to consider.  First of all, can you qualify for a loan without your husband's income? If so, you may consider applying individually since your score meets the requirement. Also, you might consider having a "Credit Expert" report done on his credit. Basically, this is a program where you can input a target credit score i.e. 620, and it will tell you exactly what you may be able to do to reach that score i.e. pay down a credit card.  Further, if there is anything erroneous on his report, you can do a "rapid rescore" which corrects and rescores a credit report in as little as three days.  Finally, a 3rd option is to find a seller who might offer "Seller Financing" in which case you would make your payments to them directly.  This would also be a great option because you would not have to pay mortgage insurance and you can still write off the mortgage interest you pay to the seller.  The challenge is that they are hard to find.  Good luck and I hope this info is helpful.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 07 2010
I have a bank that goes down to a 530FICO and interest rates are around 6%. 30 yr fixed mortgage and min. down payment is 3.5%. I work with over 40 different banks so call me for more info. if you are looking in the state of Texas.

David Gutierrez
[contact info removed by moderator]
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 07 2010
Find a lender and have them pull your credit. But, make sure the lender will give you credit advice to get the score up to 620. Now, there are some lenders out there that will do 580 but yes you will have to put in some research on your part. Or of course you can find a credit specialist first and pay for their services to get the score up.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 22 2010
Based on your credit scores, price of the home and cash on hand, your interest in a home purchase is worth exploring. The deciding factor will be the actual content of your credit report.

The challenging part will be to find a lender that will consider a credit score under 620 for your husband. Most major banks will not however there are a few good lenders that will. I work with two that will. Let me know if I could be of assistance.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 21 2010
FHA bad credit answer...

Based on the information provided thus far, it sounds like FHA will be your best option.

Generally speaking, FHA has no minimum credit score requirements. However, many lenders impose a minimum mid-credit score of 580. Some will go down to 550, while others will go down to 500.

Whether or not you'll be approved for a mortgage will depend on what's contained in your credit report, how many late payments you've had on your accounts in the past year, whether or not you've had a bankruptcy and/or foreclosure, whether or not you have any collection accounts and/or charge offs and how recent they were, they types of accounts you've had, and so on. Also, have you shown an ability to save money. The best way to find out if you can get a mortgage is to apply for a mortgage pre-approval.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 31 2009
Profile picture for Silver84
I understand that
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 31 2009
Profile picture for wetdawgs
Are you buying the home for your primary residence?  Last time you commented you were looking to buy to rent the place out.  FHA loans are for your primary residence, only.


  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 31 2009
 
Related Questions
Looking to get a FHA loan with 544 credit score
Profile picture for Brian Nguyen
Latest answer by Brian Nguyen
March 10 | 2 answers
PMI 30 year vs 15 year
Latest answer by Justin Leffew
November 26 2013 | 4 answers
How many months after an FHA appraisal is done does it stick to a home?
Profile picture for Kelli Kay
Latest answer by Kelli Kay
September 18 2013 | 10 answers
What is the max. price I can buy?
Profile picture for wayne lancaster
Latest answer by wayne lancaster
July 09 2013 | 7 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 17111 Granger Patch, San Antonio, TX Home For Sale
    17111 Granger Patch, San Antonio, TX 78247

     For Sale: $165,000

    • Beds: 3
    • Sqft: 1509
    • Baths: 3.0
    • Lot: 6098
  2. 227 Coral Ave, San Antonio, TX Home For Sale
    227 Coral Ave, San Antonio, TX 78223

     For Sale: $65,000

    • Beds: 3
    • Sqft: 1507
    • Baths: 2.0
    • Lot: 6534
  3. 9050 Twincreek Farm, Converse, TX Home For Sale
    9050 Twincreek Farm, Converse, TX 78109

     For Sale: $110,000

    • Beds: 3
    • Sqft: 1496
    • Baths: 2.0
    • Lot: 4791