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wil lender work with score of 591 for the first time home buyer will i qualify for the FHA loan

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October 10 2010 - Stockton
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most lenders require higher than a 640 these days. Check with a lender to see how to improve that score. Adding a few points is easier than ever now and allows you to truly shop for the best deal and not only because they can do a loan with a low fico person. If you take the time today it will pay off in the long run
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November 08 2010
I'd be happy to recommend a credit repair specialist if you like.

and make you work with a lender that will allow it. Some of them are getting smart to "credit repair" places and will deny the loan just for using one. If it's a legitimate place heling you improve your credit, like through a non-prof or housing agency then it would probably be ok
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November 07 2010
Check to see if you have a state housing finance association, like OHFA (Ohio Housing Finance Association), in your area.  They underwrite and finance exceptions in my area.

Traditional FHA lending is chocking on 620 at the present, have you taken the oppoertunity to explore the reason why your score is 49 points off the point where a bunch of people can help you.
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November 06 2010
Most will not. Some will but you will pay a higher rates and fees given the low score.  What you need to decide is it worth paying the higher fees and higher payment with the increased rate?  Are you getting a great value on the house to offset the higher loan costs for now?  Find out what your rate and fee combination will be with scores at different levels to complete your cost/benefit analysis.
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November 06 2010
Looks like alot of incorrect answers here.  Yes, given some extra make-sense guidelines, you CAN get an FHA loan with a scores of 591.  Anyone you shop with that categorically says no, skip.
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November 03 2010
You can optain a loan with a 591 credit score.  FHA is the only source for this type of score.  You should get preapproved  to make sure the lender will fund the loan.  You can get a 30year fixed rate loan if you qualify for the house you are purchasing. 
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October 25 2010
We offer FHA loans for people with Fico's under 620, however there are certain conditions that we will look at. For example, you will need to have been on your job at least 1 year. You need to have health insurance, you must have paid your rent on time for the last 12 months. There are other requirements but you don't know if you qualify until you apply.
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October 25 2010
Actually, FHA guidelines will allow a score down to 500.  However, finding a lender to go that low will be the question.  Also, FHA just recently changed their minimum down payment based on credit scores.  With a 591 score you are still eligible for the 3.5% down, fortunately.   Here's the mortgagee letter explaining it for you http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-29ml.pdf.  I'm sure most banks won't do it.  But I do know of a place that was offering that if you'd like me to refer you to them.   Otherwise, I would sit down with a lender and have them review your credit to see what they can do to boost you to the 620 credit score.  Hope that helps.
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October 20 2010
I would suggest you consider looking at what account can be paid off so your score can go up to min. 620 or seeking a credit repair company that assist you in cleaning up your credit.  There are lenders that can do FHA loans down to 580 because HUD will allow it, but most lenders including MetLife have overlays to only do 620 and above. 
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October 20 2010
Unfortuently, you will need a 620 to 640 plus for a FHA loan.  If you have a few key areas of credit concern, possible a credit repair company or credit clean services may help give your score a jump.  Worth a shot to check out, as I believe your credit will be just short of getting a loan.
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October 20 2010
620 is pretty typical nowadays, however there are a few wholesale lenders that offer FHA financing without a minimum FICO requirement.  My biggest concern is that with a score of 591, there must be some negative marks or collections that may need to be satisfied even if you do find a lender that will use that score.
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October 20 2010
Probably not. At this point you probably need a minimum score of 620. However, the good news is that getting 30 to 40 more points usually isn't that difficult to accomplish. I recommend talking to a good credit repair professional.  I've worked with specialists that have increased scores 80-90 points in 60-90 days. Credit professionals not only fix your credit, but  they are also good at educating you on how to keep your scores high. Finding a good one is the key -- their services should cost $500-$600, but they'll save you thousands in interest rates.

I'd be happy to recommend a credit repair specialist if you like.



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October 11 2010
Wetdawgs has a good recommendation - most lenders have access to a Credit Analyzer program that can help you discover what exactly is dragging your score down.  If you have recent derogatory credit then you probably just need to wait until you have a year to two of good credit to offset.  However, I have seen many circumstances where someone has never made a late payment but their score is in the tank due to only have one or two credit cards and they are maxed out.  That scenario is not as difficult to fix.

You need to get a copy of your actual report so you can see what's on it.  The official site for the free report is here.

If you have any specific questions about your credit post back here or you can contact me via my profile.

It may not be too bad...or you may need a two year plan. Either way you won't know until you review your report and see what can be done.
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October 11 2010
The FHA rules go down to the 580 minimum, but lenders generally require at least a 620.  I do not know anyone doing a 580 loan.  Lenders will get scores from all three of the scoring agencies, and use the middle score.  Since you know your score, you should know the scores from all three.  You need to get 2 of them above the 620 for an affordable FHA.  There are scoring simulators available to assist you in knowing what items need to be cleared or paid off to raise your scores.  Any good mortgage company should be able to guide you.
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October 11 2010
Profile picture for wetdawgs
At the moment, it is very very hard to find lenders that will deal with FICO score of less than 620, and many of them have raised it recently to 640.   There may be some, but you will pay a much higher interest rate.

Therefore, why don't you spend some time understanding why your score is low, taking the actions to improve it and then start looking.  That will also give you time to ensure you have your 3.5% downpayment, your closing costs and your several month slush fund for expenses saved up.
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October 10 2010
 
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