Can we qualify for an FHA loan with 593 and 680 credit scores?
We live in Minnesota. My credit score is 593. I have student loans in good standing and 2 recently opened credit cards in good standing. All of the negative stuff is from 6 years ago.My husband's credit score is 680. He has one very old, always positive credit card, and one that he opened about 6 months ago that is positive. He does have a tax lien from the IRS that started about 2 years ago, though. He's always paid it on time...I don't know if that helps it at all.We're wondering if we would even be able to get a home loan and what kind of down payment would be required and a VERY general estimate of an interest rate. I understand no one can give exact info, but we don't even know if we should be estimating interest at 5% or 9%..just trying to get a closer idea here and decide if we could afford this before we start meeting with lenders. by gdefor_402_645 from Minneapolis, Minnesota. May 12th 2012
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
You have a few circumstances that will make your loan a bit difficult.. the tax liens and the low credit score... your situation is not helpless, just difficult... rates are good... really good, and there is little difference in FHA financing between a 740 credit score vs a 580 score, so don't worry about the rate... it's going to be low... The best advice I can give you is to contact a LOCAL mortgage broker, not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com
Ken Graczak (KenGraczak)
#28 ranked lender in Minnesota - 23 contributions
I have a couple lenders that will go down to 580 on the FHA. They will need to look at the total picture before they give an answer. This will require us to put together a full application and get the required documents needed to get an underwriter approval. The cool part with this is you will know for sure that you are approved based on credit and income. You can go to my website at www.KenGraczak.com and see the required paperwork I will need. I hope this helps...
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
Generally speaking, your situation is less than perfect. Most lenders require credit scores over 640, so your score will limit you to just a small number of lenders who will accept a 593. His tax lien presents a different issue. Lenders almost without fail will NOT lend to you with the outstanding tax lien. We can give you an idea of your buying power today, but the lien will need to be paid before attempting to buy a home. Learn more at www.Minneapolis-Mortgage.net
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