to you at still excellent rates with a mid credit score of below 620? The mortgage bank I represent, in their
qualifying criteria based on credit scores below the FHA minimum required by most lenders, does list as low as
500 FICO mid score as all you need. However, your individual situation is looked at carefully and the mortgage
loan Underwriters apply points for certain strengths you show. Conversely, you get deductions for other
certain negatives found. We view the credit score about number 5 on the list of important details on
borrowers. Moreover, everything about you as a borrower will be scrutinized more than it would have been
with a standard fannie mae or freddie mac FHA approval. You should not have any late payments
on your credit report in the past 12 months (a strong explanation might allow for one.) You need it to be at
least two years from a b k discharge and 3 years from a foreclosure*. Short sales wherein there were many
multiple missed payments often get treated "like a foreclosure" and it would be a three year wait also.
Otherwise, it is generally a two year wait with having had late mortgage payments. FHA does allow, in the
event of no late mortgage payments but having had a short sale, for doing a purchase mortgage loan almost
immediately after the short sale. However, you may find there are many banks who require a waiting period
anyway. Usually, when FHA allows for something there will be some lenders willing to lend
based on FHA acceptance. You do have to put down at least 10% with FICO credit scores below 580, but are
eligible for 3.5% down with 580 or higher. Down payment assistance programs have different minimum credit
FICO score requirements. Owning a home is still a dream of most...to cast aside life with landlords...and enjoy
being able to make your home the special secure place you desire. With rates at record lows
and still a buyer's market in some areas, don't delay seeking your own home if you do not have to!
*We do make exceptions now if you were within 2 years of a B K and 3 years of a foreclosure for economic
difficulties shown to have precipitated the financial crisis.