(Nick Buitink is a mortgage expert/sales manager at Platinum Home Mortgage Corporation.)
Nick,
It's commonly understood that FHA loans are not supposed to emphasize credit scores (FICO scores) as much as the currently more difficult to obtain conventional loan market does. 580 is supposed to be the "magic number" that will get a borrower into an FHA-insured mortgage without triggering a much higher down payment. Why are most lenders telling my clients that they now require a 620 FICO to obtain an FHA loan?
Thanks,
Bradley
Brad,
I get this one a lot! Currently, Platinum Home Mortgage is the only lender I know of that will accept FHA Borrowers below 620 - - - 580 or higher is our requirement. While the government insures FHA loans, their involvement stops there. The funds are provided from private lenders and the government can't force them to lend to borrowers in the 580-619 range. Tell your borrowers not to be discouraged - - - home ownership is still well within their reach!
Nick
Contact Nick Buitink:
Main Number: 512-501-9353 or 1-866-640-3445 ext 1554
Fax Number: 512-410-2353
Email: nbuitink@ephmc.com