Posted on: 07th Feb, 2010 05:15 am
My husband & I have a combined credit score of 630, in the past 3 months we have raised our score a ton just by paying off credit cards (we used to be in the high 500's) we have about 10,000 for a down payment & are looking for a house in the 105,000 range..we have some old (4-5 yrs old) negative items on our report (4 to be exact, 1 is medical), we have applied for an FHA loan and had to do a letter of explanation for these items, what do you think our chances are of getting approved? We haven't had any NEW negative items reported in 2 years, no late pays on car loans etc for 2 years..we have been working very hard & getting things cleaned up...but i'm still afraid we will not qualify.
Any thoughts?
Any thoughts?
thats an easy loan as long as you are both over 620 and have the income
Sounds pretty simple but there are many other things a lender may look at. Sometimes a great loan with all the trimmings doesnt mean it will go straight through.
The ONLY WAY to know is to of course apply with a lender...which is normally free.
The ONLY WAY to know is to of course apply with a lender...which is normally free.
Hi Jean,
As your score is 630, you may easily qualify for a Federal Housing Administration Loan(FHA), as the required score is generally 620. However their are other factors too, that are important for you to qualify for a FHA Loan-whether or not you have enough income to pay for your mortgage, whether or not the house you are looking for meets the inspection rules and guidelines. Whether or not you will qualify for the loan depends mostly on your reliability.
As your score is 630, you may easily qualify for a Federal Housing Administration Loan(FHA), as the required score is generally 620. However their are other factors too, that are important for you to qualify for a FHA Loan-whether or not you have enough income to pay for your mortgage, whether or not the house you are looking for meets the inspection rules and guidelines. Whether or not you will qualify for the loan depends mostly on your reliability.