I recently talked to a potential client of mine that was a first time home buyer looking to qualify for an FHA Mortgage. They were just entering the market, and wanted to put down 3 to 5% as a down payment, but they had thought that they had to repair some items on the credit report before they would even qualify, or get a decent rate. The truth is if you have a 620 credit score, or a 740 credit score there is no difference in rate at all, in fact the rate is exactly the same. So to make a long story short you would not get any better treatment or terms if you happen to have less then perfect credit.

Here are some use-full facts to determine if you qualify for an FHA Mortgage.

Interest Rates - This will vary with the market, but I have seen them lower then conventional loans.

Credit Score Requirement - 620 - Some banks will allow a lower score then 620, but this is case by case basis.

Recent late payments on credit- i.e. Car loans, Child Support, Credit Cards, Student Loans. In most cases if you have a good explanation it is acceptable

Collections- Acceptable- *Tip*- (Beware of paying off a collection before buying a home) This is a big no no! Ask me why!!!

Debt to income - Very flexible I have seen up to 57%

Down Payment - As low as 3.5%

Non Occupying Co-Signer - Acceptable- you can qualify using a family member or a very close friend, with out them having to live in the property.

Some of these facts may seem unreal to you, but I structure these loans and get them approved everyday with great rates on 30 year fixed loans.  This information can be found with in the guidelines of an FHA Mortgage. 

If you would like to find out if you qualify go to this link below - http://www.yourmortgageresearch.com/forms/purchaseAssistant.html

Or if you have more questions on qualifying for an FHA Mortgage, or credit issues that you might think could disqualify you, please call me direct (925)-583-2507

Mike Silva

RPM Mortgage