Posted on: 30th May, 2009 08:45 am
I have received mixed information regarding FHA loans. My husband and I currently lives in a home in Jacksonville, FL that I owned prior to being married. The home has a FHA loan and we plan to use the property as rental property and would like to purchase a new home. Since, I have a FHA loan we were told that it would be best for my husband to apply for a new FHA loan for our new home. My husband credit score is currenty 583 and he is working on having two items removed from his credit report that could improve his score. He is a first time buyer, however we were told to qualify for a FHA loan the credit score has to be at least 620.Once, the two items are removed we are not sure if the score will be 620. We would like to know the best option and could we qualify for a FHA loan with a 583 score, and should we wait until the other items are removed for a better interest rate?
debwilt
You definitely should wait until the scores are over 620. If you are going to buy your primary residence and plan to hold onto it for a long time, you want the rate to be as low as possible. It is much better to wait a few months while you increase your scores.
You definitely should wait until the scores are over 620. If you are going to buy your primary residence and plan to hold onto it for a long time, you want the rate to be as low as possible. It is much better to wait a few months while you increase your scores.
As eric1 said, if you get your scores to the 620s you will most likely get better interest rates and a lower closing cost, but there are still lenders that take 580s and above, though not many. Talk to some brokers in your area and see what you come up with (make sure its no obligation). Mind you the interest rate might be as much as a half a percentage higher or more than if you had higher scores and the closing costs are likely to be higher as well.
Good luck
Good luck
