580+ FICO FHA Lending Makes a Comeback

By
Mortgage and Lending with Guaranteed Rate NMLS# 2611 NMLS #151088

Yes, it is true.  FHA mortgages for 580+ FICO borrowers are making a comeback.  In the last 2-3 years, the minimum credit score requirement for FHA loans has changed many times. 

Just a few short years ago, there was no minimum credit score required for an FHA mortgage.  Soon, most all mortgage companies began requiring a 580+ minimum FICO.  A while later, that minimum score requirement was raised to 620+.  Last October, many lenders went to a 640+ FICO on all FHA mortgages. 

All of these changes were in response to the Secondary Mortgage market.  While the Secondary Market in general has not loosened up, Prospect Mortgage will once again be funding FHA loans with 580+ FICO scores.  This presents a great opportunity for otherwise strong borrowers who have some past credit imperfections.  You can expect tighter underwriting requirements for these loans than those of 640+ FICO borrowers.

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It is always advisable to consult with a knowledgeable lending professional when navigating today's turbulent mortgage and real estate marketplace.  I am committed, qualified and equipped to help you evaluate your options!

 

Also check out:

Conventional Financing Mortgage Program Overview/Updates

FHA Financing Mortgage Program Overview/Updates

USDA Financing Mortgage Program Updates  

 

Programs Include:

 

  • Conventional (Fannie Mae & Freddie Mac)

  • FHA, USDA, & VA

  • Jumbo to $3,000,000

  • Bank Statement Program for Self-Employed Borrowers

  • Foreign National Program

  • Investor Cash Flow

  • Non-Warrantable Condos

  • Georgia Power Leaseholds for Lake Burton, Rabun, & Seed

 

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  • Rodney Mason is a Licensed Branch Manager located in Atlanta, GA.   He can be reached at (404) 591-2453.
  • Providing financing for all cities across Georgia including: Acworth, Albany, Alpharetta, Athens, Atlanta, Augusta, Austell, Avondale Estates, Blairsville, Bloomingdale, Blue Ridge, Bogart, Brunswick, Buckhead, Buford, Canton, Carrollton, Cartersville, Chatsworth, Clayton, College Park, Columbus, Commerce, Conyers, Covington, Cumming, Dahlonega,  Dacula, Dalton, Dawsonville, Decatur, Doraville, Douglasville, Duluth, Dunwoody, East Point, Fayetteville, Flowery Branch, Gainesville, Greensboro, Hampton,  Hapeville, Hinesville, Hiram, Jackson, Jefferson, Jonesboro, Kennesaw, Lagrange, Lawrenceville, Lilburn, Lithia Springs, Macon, Madison, Metter, Morganton, Morrow, Newnan, Norcross, Oakwood, Peachtree City, Pooler, Richmond Hill, Riverdale, Rome, Roswell, Sandy Springs, Savannah, Scottdale, Statesboro, Stockbridge, Stone Mountain, St Marys, Sugar Hill, Suwanee, Thomasville, Thunderbolt, Tucker, Tybee Island, Valdosta, Waleska, Warner Robins, Waycross, Wilmington Island, Winder, Woodstock, and many more.

    Providing financing for all cities across Alabama including:
    Alabama Port, Anniston, Athens, Auburn, Bessemer, Birmingham, Boaz, Bridgeport, Cedar Bluff, Chickasaw, Clayton, Coden, Dauphin Island, Decatur, Dothan, Eufaula, Fairfield, Fairhope, Florence, Foley, Forestdale, Fort Morgan, Fort Payne,Gasden, Grand Bay, Gulf Shores, Heron Bay, Homewood, Hoover, Jasper, Josephine, Madison, Meadowbrook, Midfield, Mobile, Mon Louis, New Hope, Orange Beach, Oxford, Oyster Bay, Phenix City, Prichard, Rainbow City, Saraland, Satsuma, Scottsboro, Selma, Troy, Theodore, Tillmans Corner, Trussville, Tuscaloosa, Vestavia Hills, Warrior and many more.

  • Providing financing for all cities across Florida including: Altamonte Springs, Atlantic Beach, Boca Raton, Bradenton, Cape Coral, Clearwater, Coral Springs, Daytona Beach, Delray Beach, Destin, Fort Lauderdale, Fort Myers, Fort Walton Beach, Gainesville, Hollywood, Homestead, Jacksonville, Jupiter, Key Largo, Key West, Lake City, Largo, Marathon, Mexico Beach, Miami, Naples, New Smyra Beach, Ocala, Orlando, Palm Coast, Panama City Beach, Pensacola, Pompano Beach, Port St Joe, Sanibel Island, Sanford, Sarasota, St Augustine, St Petersburg, Tallahassee, Tampa, Vero Beach, West Palm Beach, & Winter Park, and many more.

 

  • Providing financing for all cities across South Carolina including: Aiken, Anderson, Beaufort, Bluffton, Charleston, Columbia, Conway, Edisto Island, Florence, Greenville, Hilton Head, Johns Island, Myrtle Beach, North Augusta, Orangeburg, Rock, Hill, Spartanburg, Sullivans Island, Summerville, and many more.  
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    Providing financing for all cities across Tennessee including: Athens, Brentwood, Bristol, Chattanooga, Clarksville, Cleveland, Cookeville, Dyersburg, Franklin, Gatlinburg, Greeneville, Johnson City, Kingsport, Knoxville, Maryville, Memphis, Morristown, Murfreesboro, Nashville, Newport, Oak Ridge, Pigeon Forge, Sevierville, and many more

 

All mortgage lending guidelines are accurate at time of post, but are subject to change without notice.  Please call for the most current information.

    

           

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Rainmaker
140,418
David Krushinsky
Dk Home Loans, LLC - Peoria, AZ
AZ MB-0949619 MLO NMLS #202115

I heard about this from Bob Rutledge.  I think the 620 FICO requirement rules out a lot of buyers that don't necessarily have a bad credit history.  One or two collections shouldn't really prohibit someone from buying a home. 

We've had great borrowers with sub 620 scores work for months and months to get their scores up.  I feel like the underwriter should be allowed to make a determination by reviewing the credit report and the letters of explanation.  This is a step in the right direction. 

Feb 04, 2011 09:22 AM #1
Rainmaker
440,011
Rodney Mason
Guaranteed Rate NMLS# 2611 - Atlanta, GA
VP of Mortgage Lending - AL, FL, GA, SC, & TN

David....This will definitely be for stronger borrower who just happens to have had some credit issues.  Underwriting will be looking even more in depth on the <640 borrowers.

Feb 05, 2011 01:00 PM #2
Ambassador
973,959
Lynn B. Friedman
Atlanta Homes ODAT Realty Call/Text 404-939-2727 Buckhead - Midtown - Westside -- and more ... - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

Rodney,

Have a wonderful stable couple, she doesn't work outside the home, at a 567 FICO.  He didn't pay child support twenty years ago when he was in the Army AND he has one credit card issue - well, in my opinion - the credit card company is the issue.

He unfortunately decided to accept one of those credit card account solicitations.  Bought one $60. item - the bill arrived AFTER time to pay - of course.  He paid the $60. and he has been fighting with them ever since.  The balance is now $450 and all of that is late fee and interest !!!! 

Glad to hear we only have to go to a 580+ now.  Should be able to get the credit card "X" straightened out. So not too far to go for them to reach 580+ and follow their dreams.

Have a happy day,
Lynn

PS In the 70's and 80's, we lived just behind you - raised three children in a wonderful home at 836 Myrtle!  L.


 

Feb 07, 2011 12:56 AM #3
Rainmaker
1,343,790
Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL
REALTOR

Rodney - What great news for buyers who didn't have credit above 640.

Feb 07, 2011 01:01 PM #4
Rainmaker
440,011
Rodney Mason
Guaranteed Rate NMLS# 2611 - Atlanta, GA
VP of Mortgage Lending - AL, FL, GA, SC, & TN

Lynn....This change will help get more buyers into homes.  They do need to be strong in every other aspect though.  Yes...You were very close to me.

Michelle.....Yes, it is.

Feb 08, 2011 07:24 AM #5
Rainmaker
6,038,883
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Good post. This will help many buyers.

 Life is good!

Feb 10, 2011 01:19 AM #6
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Rainmaker
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Rodney Mason

VP of Mortgage Lending - AL, FL, GA, SC, & TN
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