Why are such high credit scores required??

It's all about risk vs. reward... but the lender needs to know the risk.. and that's what the credit score is supposed to do... show the lender the probability of this loan going bad... the model used to determine the likely hood of a potential borrower's default rate is gauged by this score, and although it's not perfect science, it's fairly accurate... there are ways to "fool the system", however a competent loan officer can explain this to you... that being said, there are lenders out there that will go below 640... Some as low as 500. 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

David, I have FHA lender who will go below 640, if you want to call me with the full picture I can see what optios you may have. As for the 640 fico requirement vs FHA's FHA set gudielines only they do not directly lend. The lenders put inplace their own more restrictive guideliens to "protect" themsleves.. unfortunately. Scott Irvine845-856-2619.