FHA-500 FICO PROGRAM
I wasn’t sure that I would see a lender that was willing to do FHA mortgages, down to a 500 credit score or even should, but this in now reality. Minimum down payment is 10%, which should be higher and the interest rate is about 1% above the market rate and that should be higher as well.
I am not sure that I will do any loans with credit scores this low, as it just goes against all common sense. It would ready need to be a unique situation, with a large down payment, that might get me to consider doing a loan down to a 500 credit score.
Some lenders have a short memory or don’t have a reference point to any history regarding stupid loans that were done a very short time ago. To me, this is just looking for trouble, just saying.
image courtesy of stuart miles/freedigitalphotos.net