- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Answers (21)
- Jonathan Blackwell, "JonathanBlackwell"
- Contributions:19
Wells Fargo still goes to 600 if it makes sense
- Angel Vargas, "angel1bean"
- Contributions:2
Although many lenders have implemented their own internal minimum FICO score requirements, historically, FHA has never had FICO score requirements. GNMA (the secondary arm of FHA that purchases FHA loans) was specifically chartered to assist first time and/or moderate to low income borrowers who had minimal or no credit. Therefore, they have never implemented minimum credit scores. We, as a mortgage banker, can package and sell loans directly to GNMA. This allows us to make common sense decisions based on the merits of the file, and not a FICO score. There may be mortgage bankers in your area that do the same.
This is a relatively low credit score. You can improve your credit rating by making all outstanding payments and dues. Gradually, your credit score will improve. A good credit score speaks your creditworthiness.
[links removed by moderator]
[links removed by moderator]
- Robert Lowery, "Bob Lowery"
- Contributions:2097
Beware of those that Spam on Zillow! It is not an acceptable practice on Zillow.
Your credit score is little less than what you need to apply for an FHA loan. Your first target should be to achieve a credit score of 620. This can be done by paying all overdues and getting rid of other credt issues. However, if your need is time sentitive, apply for the loan now. The lenders have a tendency to increase credit scores for loans very frequently.
Link:- [link removed by moderator]
Link:- [link removed by moderator]
- Georgina OBryan, "GOBryan1"
- Contributions:483
In most cases, the lender is looking at your MID score, not the lowest or highest. With FHA, 620 is the lowest the midscore should be. Getting your dings fixed can help improve it.
My mortgage guy has a program that can analyse your credit and determine what you need to do to get it higher but paying off that $1000 will likely be on that list.
- darcorb
- Contributions:1
My credit score is 601 according to equifax. All I have on it is 3 outstanding bills sent to collection. My question is they add up to around 1000 dollars. How far above 601 do you think my score would jump if i get them payed off?
- Rick Grau, "rick.grau"
- Contributions:39
It would be very much worth it just to fix your credit and get over 620. You'll get much better terms on your deal that way. Find a broker that uses Funding Suite as their credit vendor. When they pull your credit it tells them your potential score increase if you were to make certain adjustments in your credit file that you have control of. By generating a rescoring plan for $3.50, Funding Suite will tell you what specifically you need to do to raise your score those points. Typically it involves paying down certain balances to certain amounts or removing yourself as an authorized user from someone else's card. Once the steps have been taken you can be rapid rescored for $40. I'm sure that other credit vendors have systems like this but I just know how FS works and I point it out to you because I know it DOES work. I am closing a deal Tuesday with a borrower who had a 608 mid score that we raised to a 628 in a week using this system.
In my experience most people who are in the low 600's have the potential to get over 620 by changing the snapshot of their credit. Funding Suite helps me do that for my clients. Your total credit bill at close will end up around $75 by using this system but it's highly worth it by what you'll save in rate and/or points by having to use a lender who will do less than 620 (but charge you handsomely for it).
I would call local mortgage brokers licensed for your state and ask if their credit vendor is Funding Suite or if the one they use is capable of doing this kind of thing.
In my experience most people who are in the low 600's have the potential to get over 620 by changing the snapshot of their credit. Funding Suite helps me do that for my clients. Your total credit bill at close will end up around $75 by using this system but it's highly worth it by what you'll save in rate and/or points by having to use a lender who will do less than 620 (but charge you handsomely for it).
I would call local mortgage brokers licensed for your state and ask if their credit vendor is Funding Suite or if the one they use is capable of doing this kind of thing.
- Nic Netherton, "Colorado Lender"
- Contributions:7219
677 will work fine for FHA.
- tinnie35
- Contributions:15
What is a score of 677 is that Bad for FHA
- candicefitzner
- Contributions:1
I am in the same situation as the the person who posted the question. I have a 601 and my husband is at 555. We both have some past credit issues. We have children that are about to be in school in about a year and a half and we are wanting to buy a house before then and get settled. If there are any suggetions to lenders or even a way to help better our credit scores without breaking us that would help extremely. BTW we have no money saved up for closing cost or a downpayment, any suggestions about that also?Â
Thanks,Â
CandiceÂ
Thanks,Â
CandiceÂ
- Roberto Pineyro, "HardMoneyLoansMadeEZ"
- Contributions:1
You are OK. With compensating factors, FHA may still be OK.
- Liberty Mortgage
- Contributions:470
Under current guidelines, there are still a few investors doing scores below 620- Rates will be higher as those investors know they have a limited product. I would suggest you get your loan into underwriting quite quickly as most of these investors are raising their credit score limits on a daily basis-
- Robert Lowery, "Bob Lowery"
- Contributions:2097
I just got a $10,000 refund for the government because I owned a home. It would have been close to $0 if I hadn't....
So, owning isn't the end of the world either.
So, owning isn't the end of the world either.
- MagicalHouse
- Contributions:261
Tightening of credit guidelines, higher rates, and inflation can also cause housing prices to drop. No one knows what will happen tomorrow so plan for the unexpected, buy if you are financially ready otherwise rent, remember renting is not a terrible thing.
- Robert Lowery, "Bob Lowery"
- Contributions:2097
"And prices may keep dropping for years."
And, they may not. Everyone knows this will happen in pockets throughout the US. But, Florida has experienced major drop and most suspect it has hit bottom.
With the Feds pumping out money like its water, look for inflation and higher rates down the road.
And, they may not. Everyone knows this will happen in pockets throughout the US. But, Florida has experienced major drop and most suspect it has hit bottom.
With the Feds pumping out money like its water, look for inflation and higher rates down the road.
- MagicalHouse
- Contributions:261
And prices may keep dropping for years. I am just saying look at the big picture, see if purchasing a home is the right thing for you right now. Do you have enough money to maintain the house, do you have money saved if you get laid off or hurt.
- Robert Lowery, "Bob Lowery"
- Contributions:2097
"Houses are not going any where"
No, but the lower rates, and tax credit may......
moco, I would recommend sitting down with an experienced LO and see if it makes sense. There are many lenders still going down to 601 and lower if it makes sense.
No, but the lower rates, and tax credit may......
moco, I would recommend sitting down with an experienced LO and see if it makes sense. There are many lenders still going down to 601 and lower if it makes sense.
- MagicalHouse
- Contributions:261
Why is your credit score 601? Are you sure you don't want to fix your finacial stituation first (Pay debts on time, deliquencies, judgements, saving reserve)? Houses are not going any where
- Mark Wilkins, "TheMortgageMark"
- Contributions:349
I have a 601 credit score, which lenders can help me to et approved for an FHA loan?
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.