Posted on: 26th Apr, 2010 11:05 am
Our scenario: 20% down, low debt to income ratio, but bad credit (640-660) due to a scam last year which we can't fix. Our credit should be up in the 700's in about 3 months.
Unfortunately we found a house we love. Can we still get a mortgage with a decent interest rate? Is FHA only option? Or should we wait and hope the house is still on the market in a few months?
Unfortunately we found a house we love. Can we still get a mortgage with a decent interest rate? Is FHA only option? Or should we wait and hope the house is still on the market in a few months?
With a credit score of 640-660, you won't be able to get a conventional mortgage. However, you can definitely apply for a FHA loan. These loans are available to the borrowers who have a credit score of 620. So, if you satisfy the other required criteria of the FHA lender, you'll be able to get the loan.