Most lenders you've talked to have probably already told you, without a 620 credit score they can't qualify you. But as I've said before, not all lenders are equal. And when it comes to credit, that is certainly true. With a 580 credit score or above, we can still qualify for an FHA loan. This means you will have mortgage insurance, but the interest rate is pretty close to what you would get if you had great credit. Even if there are some medical debts or charge offs, it is still possible. Here are the requirements:
* At least one credit score
* No foreclosure in the last 3 years
* No CH 7 BK in last 2 years
* 3.5% Down Payment
* If refinance, cash out allowed but only to consolidate debt and up to 85%
* Need two year's W2s and one month's paystubs, or two year's tax returns
* Some reserves in the bank helps
* Gift funds from family members OK
Hope that helps. Feel free to contact me if you have any questions at 949.667.2887 or email@example.com.
- Brian Nguyen is a senior loan consultant (NMLS 659743) who learned more about this stuff than he ever intended to. The opinions expressed here are solely his own.