Posted on: 17th Jan, 2010 06:53 am
I HAVE A 582 CREDIT SCORE, MY DAD IS WILLING TO CO-SIGN FOR ME HE HAS A 682 AND FHA SAID THAT I CANT GET A LOAN.THAT IT HAS TO BE A 600 WITH A CO-SIGNER BEFORE THEY WILL APPROVE ME IS THAT TRUE
FHA mortgages don't have FICO requirements, it's the Investor's that buy FHA mortgages after they've been originated that have the FICO requirements. It's called an "investor overlay".
So if you've been turned down by a bank or any mortgage company because your FICO score is too low, seek out another Loan Officer at another company. When you're searching for another company, be sure to tell them what happened and ask them if they have the same, or similar, overlay.
Maybe some FHA Loan Officers who read this post will be able to comment and let us know if they don't have that overlay.
So if you've been turned down by a bank or any mortgage company because your FICO score is too low, seek out another Loan Officer at another company. When you're searching for another company, be sure to tell them what happened and ask them if they have the same, or similar, overlay.
Maybe some FHA Loan Officers who read this post will be able to comment and let us know if they don't have that overlay.
Raymond is right in that you must check around to see who will do it. I happen to work with a couple of lenders willing to go even as low as a 500 FICO score for FHA. However, as you go below 620, the loan to value ratio requirements change. For example, if you have a score of 500, the maximum LTV will be 85%.
