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FHA mortgage loan. Median credit score 606

I was wondering if there was any way to get an fha loan with a credit score of 606. I already have a local bank that will do the construction loan and was told by them that I needed a pre-approval letter to begin construction. I have already gone by my bank was was told the amount I want to borrow is approved but the credit score is too low. Basically, the income is there but the credit score is poor. Any help will be appreciated. Thank you!
  • June 04 2013 - Laredo
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Answers (9)

Its not as black and white as that.Each bank will have a minimum cut off score. After you find a bank that will accept your score they will run your information through an Automated Underwriting Software (AUS) system. The AUS will look at your exact income, credit, DTI, work history, etc. and compare it to the millions of people that came before you in the same exact scenario. The AUS will look backwards historically to see if your situation history pays their mortgage a high enough percentage of times. With this information you will be able to find out if your loan will be acceptable to FHA.
  • July 10 2014
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I applied for a FHA loan and was told I needed a 640 to qualify and my middle score is 606.  Are there any options out there available to me? I live in Fl...
  • July 09 2014
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  • February 16 2014
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It sounds like you are working with a lender who has self imposed restrictions. I say this because FHA allows for borrowers with scores well below 600 to qualify. We have offered programs like these for years. Now the difference between having a 500 or a 580 score will be the amount of down payment you are required to pay. Also please note that starting 2014 borrowers with scores under 620 and debt to income ratios are over 43% will now be required to pass manual underwriting. This only means that you will need to have compensating factors. I will be happy to explain what all this means in further detail if you like.
  • December 03 2013
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Lenders can go down to a 580 for FHA loans, I would be able to refer you to one if your still looking.
  • November 18 2013
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 can typically get a loan with scores as low as 580, when specific criteria is met.  For example, no recent mortgage lates if you have previously had a mortgage, acceptable reasons for any charge-off or collection accounts showing on your credit report, etc.  What state are you located?  If Texas, I am unable to assist you.  The advice to get the scores up is good advice.  You can never go wrong there.  Let me know if you'd like to explore this possibility.  All the best in your quest! 
  • June 12 2013
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We can go down to 620 in house,  if necessary I can to broker out down to 600, lower than that is like pulling out your molars without any Novocaine. Credit is my specialty, let me know if you need assistance.

Best of Luck!
  • June 11 2013
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With low credit you can get qualified for a mortgage, but it can be more risky.In some cases you have to pay higher interest rates.It is better to first improve your credit score,before applying for a loan.

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  • June 11 2013
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Do you have 5% down.
We do FHA down to 600 with 5% down.
This program requires 2 months cash reserves.

Let me know if you would like to hear more.

  • June 04 2013
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