Profile picture for DreamieKid

FHA is only people with bad Credit?

Is FHA for people with bad credit? Or people with 720+ credit score can use it as well.

I'm new to all of this. Thanks for the Advice! It's a great help!!

  • January 28 2014 - Haines City
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Answers (15)

Anyone can applied for FHA loan they are used on owner occupied homes only. These loans are available with a 3.5 % down payment or larger which give a consumer a fixed rate loan for a certain length of time such as 15 to 30 years approximately. These lenders will work with individuals who has good credit or someone who has credit issues in the past. I would  suggest you go a lender  of your choice with your personal monthly expenses to determined which type of mortgage would be best you.  Also, they informed you the amount of mortgage that you can be approved for in order to purchase your new home. This should be done first before writing an offer on a home of your choice.
  • February 05 2014
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FHA is for everyone! You can get an FHA Loan with a 620 credit score or a 720 credit score, the only difference is that if you have a 720 score it may be cheaper to go conventional. FHA is easier to go with and has lower rates but you deal with MMI and an upfront Mortgage Insurance Premium... where as with conventional there is no upfront mortgage premium or PMI (as long as the LTV isn't more then 80% of homes value) Not everyone has a 720 score so the easier way to go is FHA, but that's not necessarily the cheapest. My opinion, if you want to finance a house save 20% and get a conventional loan. Your payment will be cheaper and its a better loan all together.

  • February 05 2014
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Profile picture for Awest0722
That is a qustion for a lender to answer, however I have had clients with excellent credit and they were able to open an FHA mortgage..
  • February 05 2014
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A lender should be answering that question
================

1.    9 Lenders have answered so far.
2.    Nice grasp of the obvious!

  • February 05 2014
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A lender should be answering that question. But I have worked with MANY buyers that have great credit but have an FHA loan for different reasons. 

For example: down payment amount and seems to be easier to quality for. 
Good Luck. 
  • February 05 2014
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You will want to contact your Lender to go over the best program for you.  FHA financing can be used for people with good credit.  It has a minimum downpayment requirement of 3.5%. 
  • February 05 2014
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If you have a score in the 720 range the ONLY reason you would choose FHA financing is if the maximum downpayment you can come up with is 3.5%. Otherwise you would seek conventional financing. SIMPLE AS THAT.
  • February 04 2014
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FHA can  be used for  people with good credit also, FHA has only 3.5% down,  and easier to qualify for in most cases

Tom Bawany
Mortgage Loan Originator
NMLS # 519971 
  • February 04 2014
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You state in your other post you have a 20% down payment, FHA should not even be considered if you put down 20% especially with your 720 score.
  • January 29 2014
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FHA can help anyone, but you'll pay a mortgage insurance. There is a program in Virginia VHDA, you can get a conventional loan with 3% down payment NO mortgage insurance. I teach classes on that.www.Freehomebuyerclass.org. Or just feel free contact me directly.
  • January 29 2014
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FHA is not just for people with bad credit. FHA has a lot of benefits. These benefits include easy credit qualification, low down payment, low closing costs, and competitive rates. I mean if you have a 720+, you shouldn't completely exclude FHA from your options, but you should look at other options available to you as well. Also, if you do not have a large down payment, FHA would be a great option. Either way, the best thing for you to do is to speak with a lender such as myself to see if you can get started on financing a new home. If you have any further questions or if you would like a loan, feel free to contact me.

Good Luck!
  • January 29 2014
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No FHA is not for just bad credit. If you have 720+ score there may be better options for you depending on the circumstance. FHA is more relaxed on credit and requires less of a down payment than conventional loans. Talk with a mortgage banker local to and let him/her filter through the options with you.
  • January 29 2014
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FHA is NOT only for people with bad credit. There are a few major players in the lending industry today. FHA, VA, Conventional, & USDA; each program has its advantages and its disadvantages.

It is up to an experienced, knowledgeable mortgage professional to educate you and go over ALL the options you qualify for to allow you to make an educated decision in which program fits YOUR needs.
  • January 29 2014
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Not at all, but it is much more relaxed with credit requirements. It also has more flexible down payment options, higher allowable debt to income ratio's and shorter waiting periods for things such as bankruptcies and foreclosures. Many of the people I have used FHA for with a 720+ credit score are those who cannot qualify with their debt to income ratios.
  • January 29 2014
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FHA is an available source for all home buyers. It's main benefit allows a low down payment (3.5%), a little more flexibility in guidelines and it's an Assumable loan (this can add value,if you're looking to sell in future while the Market is in an environment of high interest rates). The main issues lie with the Mortgage insurance. It's expensive and is for the duration of the loan.
  • January 28 2014
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