With a 602 Credit Score Can I Buy a House

With a 602 Credit Score Can I Buy a House

FHA minimum credit score is 500.

New FHA policy requires a minimum credit of 500 to buy a home. In the old days FHA did not require a minimum score. These changes went in to effect in 2010.

To buy a home you will need a minimum FICO score of 500. FHA minimum credit score is 500.

Borrowers with scores above 580 require a 3.5% down payment. The funds can be a gift from a family member and up to 6% seller concession is allowed.

If you have FICO scores below 580 new FHA changes require a 10% down payment. The funds can be a gift from a family member and up to 6% seller concession is allowed.

FHA closing cost. FHA regulates some of the closing costs associated with a FHA loan. FHA allows the seller to pay up to 6% of the sales price for closing cost.

Generally, a borrower who has made timely payments for the last 12 months serves as a guide and demonstrates their willingness to repay future credit obligations. New FHA Policy changes require minimum FICO score to be 580 for a 97.5% loan-to-value refinance or a 85% loan-to-value cash out refinance. These FICO requirements went into effect in the spring 2010.

However, most individual lenders will still require credit scores higher than 640 to buy a home, we don't.

To be eligible for an FHA loan your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income (31% ratio). Your credit background will be fairly considered. At least a 500 FICO credit score is required to obtain an FHA approval. You must also have enough income to pay your housing costs plus all additional monthly debt (43% ratio). These ratios can be exceeded somewhat with compensating factors.

With a 602 credit score can I buy a house? Yes you can!

We look forward to working with you.