FHA loans for people with low credit scores

Tasha,If your cousin is planning on purchasing the home then he would need to apply for the mortgage and qualify with his income. You would not have ownership in the home. There are programs out there for credit that is in between 620 - 640. If your credit is in this range then could consider buying to home together. The key is to know what your score is and that your prior credit history does not contain any bankruptcy or foreclosure. These two items impose waiting periods before you are able to qualify for a home.The other issue that concerns me is that paying off debt is good but if it is credit card debt you want to pay it down to 30% of the balance. Then pay payments on time. This will increase your score. If you are paying off collections you may want to hold off on that. This can lower your score due to it being a derogatory item and when you pay it off they report it paid but because it is a derogatory item it will ding your credit instead of improve it. Please see my profile and contact me if you have more questions. I would be happy to help even I can't do your loan. I am only in AZ.

FHA does allow for Non-owner occupant borrowers or your cousin can purchase with you. As you have been informed critical to not have a BK or foreclosure.. I have access to FHA programs at 580 and above...as the FHA guidelines do allow for lower scores than 620..many lenders apply a the added guideline or what we can investor overlay of 620...some are at 640...also be careful with what you do with your current creditors..great to payoff just to not close them as pointed out leaving a small balance is good with timely payments....Feel free to contact me for a no obligation consultation...