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can you get a fha loan with one spouse at 585 score?

live in peoria il, one spouse ($36,000/yr) has a credit score of 585 due to late payments on student loan several years ago. no negative items in the last 2 plus years. other spouse ($15,000/yr) has a score of 649. only debt is $12,000 on student loan, thats it. we have $20,000 in savings. bank turned us down because of 585 score. I have seen comments that there are still lenders who will work with scores under 600 for fha loans. we were looking at purchasing a house around $140,000 here in peoria illinois. does anyone know of any lenders who could help us? 
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February 23 2010 - Peoria
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I suggest you look into ways of repairing your credit.
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February 23 2010
Why not simply take the 8-24 hours necessary to fix and improve the FICO score?
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February 23 2010
Hi Peoriaguy,

Most investors have tightened up and requiring higher credit scores, 620 mid scores are what I am seeing here.  Credit repair is definately a great choice.  There are several that I have sent my clients to and have seen some really good success.  Hiring a credit repair company will charge an enrollment fee and a monthly fee.  Fee's range from $69 on up.   I am in Washington State and we have an FHA State Bond program that allows financing for first time home buyers.  Minimum credit score requirement for this program is 580.  I would check your area to see if something similar is available or you can relocate to Seattle.:)
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February 23 2010
why do you have two spouses? Use the spouse that has the better score.
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February 24 2010
Peoriaguy,

There are some lenders out there that do go down to a 580 that can help you.


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February 24 2010
mid allen
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February 24 2010
There are definitely a few lenders who can still get these types of loans done down to 580.  Make sure you are keeping them honest with their fees as sometimes they try to prey on people like yourselves because there are not as many lenders who can get the loan done.

With rates likely going up it probably does make sense to move forward if somebody can get your loan done at a reasonable rate and cost so you can get into a house now at a decent rate.  I used to work with a lender who could handle these types of loans but the recently dropped the program.  The rate difference between a 580 and a 620 credit score was only .25.  So if you wait a few months to get your scores up and rates end up at 6% during that time you would have been better off just getting it done.  There are a lot of hypotheticals there so you will be best served talking to somebody in your area how can possibly help you.

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February 24 2010
620 can get you an FHA loan refinance or purchase. You can use the spouse with the greater score...but I don't know about your state but in Texas we have to count all debt between spouses as a ratio. But, one score and one spouse on the loan...just both on title.
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February 26 2010
 
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can you get a fha loan with one spouse at 585 score?
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