FHA Loans Credit Score Under 640

FHA Loans Credit Score Under 640

FHA allows a borrower with a minimum credit score of 580 to buy a home with only a 3.5% down payment. The guidelines allow a borrower with a minimum credit score of 580 to buy a home using their own funds for a down payment or the down payment funds can be a gift from a family member.

New guidelines allows a home buyer with a minimum credit score of 580 up to a 6% seller's concession. The seller's concession must be written into the sales contract.

Borrowers with a credit score below 580 new guidelines require a minimum down payment of 10%. The guidelines allow a borrower with a minimum credit score below 580 to buy a home using their own funds for a down payment or the down payment funds can be a gift from a family member.

New guidelines require a minimum credit score of 500 for all loans.

Home buyers with a credit score below 580 are required to make a 10% down payment. The down payment funds must belong to the borrower. No gift funds are allowed and no seller's concessions are allowed.

New refinance guidelines.

Home owners with a credit score above 580 can refinance up to a 97.75% loan-to-value. New guidelines allows up to 85% loan-to-value for a cash out refinance. Closing cost can be rolled into the new loan amount.

Home owners with a credit scores below 580 require a maximum loan-to-value of 90% for a rate and term refinance. And up to 75% cash out refinance with credit scores below 580.

Whether you're planing to buy your first home, refinance, lower your monthly payments, buy a second home, consolidate debt or get pre-approved for a mortgage. A perfect credit score is not needed for an HUD insured loan approval.

In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for a HUD insured loan than a for a conventional loan. Credit scores down to 500 are accepted if there are compensating factors that offset the credit risk.

What documentation will I need?

• Personal tax returns for the past 2 years
• Current pay stubs for the past month
• Bank statements for last 2 months (all pages)
• Latest retirement statement for each active account (all pages)
• Sales contract (purchase)
• Clear copy of Driver’s License (front and back)
• Clear copy of SS card (front and back)
• Addresses and loan information of other real estate owned (if any)

Call us 888.958.4228

FHA Loans Credit Score Under 640, FHA Loans Credit Score Under 640,


Minimum Credit Score Needed

to Buy a Home or Refinance

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FHA

Requires a minimum credit score of 500 to buy a home or refinance

FHA minimum

credit score 500

VA

Requires a minimum credit score of 500 to buy a home or refinance

VA minimum

credit score 500

Fannie Mae

Requires a minimum credit score of 620 to buy a home or refinance

Fannie Mae minimum

credit score 620

Freddie Mac

Requires a minimum credit score of 620 to buy a home or refinance

Freddie Mac minimum

credit score 620

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888-958-4228

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