FHA - Less Than Perfect Credit Score Mortgage

Mortgage and Lending with USA Mortgage NMLS:297044 MO:1365-MLO

There's Hope For Every Home Buyer With Less Than Perfect CreditFHA Less Than Perfect Credit Mortgage

Have you been turned down by other mortgage lenders for a FHA mortgage because of less than perfect credit? Are you concerned because you know you have had credit issues in the past or you just aren't sure of your credit situation?

We have all heard it is getting harder and harder to get a new home loan, especially if your credit scores are less than perfect. FHA allows for less than perfect credit score mortgage approvals, but many lenders have their own overlays to what FHA wants.

Today if you don't have a middle credit score higher than 620 to 640 many lenders are just saying NO to all home buyers unless you can put down more than 20% on your new home purchase.

Your 580 Credit Score and 3.5% Down Payment May Get You a New Home!

FHA, one of the best mortgages available to first time home buyers, home buyers with little money saved, less than perfect credit home buyers, or under employed home buyers.

FHA, has a mortgage program available to home buyers that have minimum credit scores of 580 or higher! But, most lenders ignore this program's guidelines to overlay even more restrictions on you to make it harder to get your new home.

Do you have credit scores of 580 and higher and want to buy a new home? If you can meet these FHA guidelines it is HIGHLY POSSIBLE than very soon you will be purchasing a new home:

  • Minimum 580 credit score for all borrowers for all reporting credit bureaus
  • Minimum 3.5% down payment, gift funds allowed but not down payment assistance or grant programs
  • Maximum total debt to income ratio of 43% of your gross monthly income
  • Maximum housing debt to income ratio of 31% of your gross monthly income
  • If renting 12 months of perfect on time payments
  • Minimum of 2 months total house payment in reserves after closing
  • Chapter 7 bankruptcy discharged for 2 full years
  • Chapter 13 bankruptcy; must have been successfully completed for a minimum of 12 months
  • Foreclosures, 3 years of seasoning
  • No new derogatory credit accounts after the bankruptcy
  • No collection accounts more than $1000, excluding medical collections
  • Home Buyer Counseling required
  • Net Housing must be accounted for, if your new house payment is less or the same as your current rent this is great. Borrower must demonstrate ability to adjust to the new higher house payment. 6 months of net housing change must be documented. (example) Current rent/housing = $1000, new proposed house payment = $1200 an increase of $200 per month. Required additional reserves/savings after closing is $200 x 6 months = $1200
  • Primary residence / owner occupied
  • Purchase only
  • Seller concessions allowed up to 6% of sales price for closing costs


Now that you have seen what FHA and we want to help you get your new new home and the financing for that new home do you think it's possible? Then give me a call and let's discuss how we are going to get you pre-approved to buy your new home.

Is you credit scores below a 580 but you can meet all the other guidelines required of this FHA mortgage program? Then let's talk and make a game plan to get your credit scores higher. Many times I have helped home buyers just like you get their scores higher in 30  to 45 days, sometimes less.

Are You a Missouri Home Buyer?

My name is Bob Rutledge and I am an 18 year mortgage lender veteran with offices in the St. Louis and St. Charles area. If you are looking to purchase a new home in St. Charles, St. Louis or anywhere in Missouri and need help getting a new home I would welcome the opportunity to provide you all the possible help in getting you your next new home.

BOB RUTLEDGE, Mortgage Professional,USA Mortgage

brutledge@usa-mortgage.com - 314-628-2218

111 Westport Plaza, suite 600 Maryland Heights Mo 63146

First Time Home Buyer Lender


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Posted by

Bob Rutledge USA Mortgage

Comments (2)

Rosanne Fett
FHA home loan, VA home loan, zero down home loan - Dallas, TX
NMLS #205558 - Home Loan Expert, Jumbo Home Loan, USDA

Keep beating that drum and maybe we can all get the word out that you don't need a 700 FICO and 20% down to buy a house!  As a fellow lender, I know I try as much as possible to spread accurate information.

Jun 07, 2011 08:52 AM
Dave Sullivan
Real Estate One - Birmingham, MI
Michigan Realtor with an investor viewpoint

I am not premoting anything but I just did a video on how to get collections off your credit report for free...  check it out here http://www.thecreditguy.tv/how-to-remove-collections-from-a-credit-report-for-free/

Mar 05, 2012 09:30 PM