640 FICO is the New Number for FHA Loans

By
Mortgage and Lending with NMLS# 335055 335055

640 FICO is the New Number for FHA Loans *

 

*On FHA Case numbers on or after Oct 4th

My company notified us that 2 of the big five servicing lenders are going to a minimum of 640 FICO for FHA.
A third has indicated they will follow suit. The remaining two won't be far behind.

Does this mean that you will not find 620 scores accepted at a few places? No.... There will be some smaller holdouts that offer the 620 for a while. Just expect to jump thru some hoops for it though. They will likely be very selective.

20 points will be a deal killer for some..... But others will be able to tweak their credit a little and get over 640 over time. It

It might be a good time to use my Free Do-It-Yourself Credit Repair Website.

Don't get left out... If you are looking for a home and are on the bubble..... You have until Friday to present your lender a fully executed contract.

 

Tom Burris
DallasLoanGuy.com

Dallas, TX

http://www.dallasloanguy.com/
Dallas Loan Guy      logo

I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!!

Your Texas FHA Expert and Dallas Mortgage Expert.

 

Texas FHA Loans- DallasLoanGuy

http://texashomeloanblog.com/post/1886288/640-fico-is-the-new-number-for-fha-loans

 

 

Comments (9)

William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

And another non-problem is solved!

You Goverment cares!

Ya!

Bill

Sep 29, 2010 09:05 AM
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Your company?? I thought I notified you of that last night!!

The average credit score in the state of Texas is 635... it's going to knock out half the population!

Sep 29, 2010 09:39 AM
Tom Burris
NMLS# 335055 - Baton Rouge, LA
Texas/Louisiana Mortgage Pro - 13 YRS Experience

we got a quick notice yesterday.

your blurb you sent had more detail though. how can i subscribe to that?

i had to do a little research myself as well.

i was expecting this

Sep 29, 2010 09:54 AM
Greg Cook
Platinum Home Mortgage - Temecula, CA
Mortgage Consultant NMLS ID# 283159

Tom, I had heard rumors this was coming, didn't realize it would be this soon. Fortunately getting from 620 to 640 won't take a lot of work for some, but for others it will be Mount Everest.

Sep 29, 2010 10:21 AM
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Hey Tom, I get updates from Linda Davidson with Service 1st in Dallas every so often.

Sep 30, 2010 01:17 PM
Tom Burris
NMLS# 335055 - Baton Rouge, LA
Texas/Louisiana Mortgage Pro - 13 YRS Experience

Oh. That's what that was?

I thought it was from a website or something.

 

Sep 30, 2010 02:23 PM
Anonymous
Matt

I purchased a home in Austin last May with the intention of living in it with my family.  Before I could move in both my wife and I were transferred to San Francisco.  We would like to refinance the two mortgages on this property, but we are told that we cannot due to it being seen in Texas as a "cash out" refinance.  There is at least 20% equity if not more and we would also like to place it under an LLC.  Can this work?  

 

Please respond.  Anybody.

Oct 08, 2010 02:40 PM
#7
Anonymous
Greg Cook

Matt, if you got the first and second when you purchased the home it shouldn't be considered a cash out refinance, but if your intention is to move the loan wouldn't be considered owner occupied.

You can't have the loan docs in the name of the llc but you can hold title that way, unless something in Texas law prohibits it.

Oct 08, 2010 04:20 PM
#8
Tom Burris
NMLS# 335055 - Baton Rouge, LA
Texas/Louisiana Mortgage Pro - 13 YRS Experience

Matt....

We would need more info to answer your question.

 

 

Oct 11, 2010 03:23 AM

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