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Not sure I understand. A realtor really doesn't figure into the loan portion of the transaction beyond being able to recommend a mortgage broker. At least in my experience. I've done FHA multiple times and the realtor has never really figured in. You just need 3% down of whatever the purchase price is or in some cases, what you are pre-approved for if you expect to buy up to the max of your pre-approval price.
OHJ is correct - ALL realtors should be familiar with these loans - additionally, if you are purchasing a home, this little detail is VITAL information to give to the home seller (note that some sellers are apprehensive selling to those needing a FHA loan)...
You need to get a mortgage BROKER (local only!) that is experienced with FHA loans (I can DM my broker contact if you want)
Also, never go to a realtor recommended broker (IMO conflict of interest)
Finally, congrats on a possible home purchase - what part of the Upstate are you interested in?
Last edited by drfranklin; 05-02-2013 at 08:30 AM..
I know FHA lends to those with lower credit scores, as low as 500 if you have a sizable down payment which we have. But I can't find a lender to do such. My bank told me they just stopped lending a month ago to anyone under 640. My husband screwed his credit up when he was younger and his score is still suffering as is only at 590. We make plenty of money and have 5 years of NEVER EVER being late on a rental of 1000/month but that doesn't seem to count for anything. Since my bank said no I don't know where to turn? A google search turns up scams.
The rental market here sucks and I'm tired of paying out the butt for a crappy rental and have looked at decent homes that would fall into less a month in mortage.
I know FHA lends to those with lower credit scores, as low as 500 if you have a sizable down payment which we have. But I can't find a lender to do such. My bank told me they just stopped lending a month ago to anyone under 640. My husband screwed his credit up when he was younger and his score is still suffering as is only at 590. We make plenty of money and have 5 years of NEVER EVER being late on a rental of 1000/month but that doesn't seem to count for anything. Since my bank said no I don't know where to turn? A google search turns up scams.
The rental market here sucks and I'm tired of paying out the butt for a crappy rental and have looked at decent homes that would fall into less a month in mortage.
FHA tightened up their regulations in the wake of the real estate meltdown. However, never has the minimum credit score been 500. FHA guidelines state that 580 is the lowest but 620 and above are preferable. However this is contingent on the mortgage underwriter. They make the call. For example, back in 2011, I tried to buy the duplex that I am renting. I already own a house in Columbia that I bought with a FHA loan. I had long term renters in that property. According to FHA guidelines, I could have obtained the loan, but the mortgage underwriter would not approve it. Even going through the manual underwriting process. That's a key point--find a broker who knows mortgage lenders who will do the manual underwriting process. Otherwise, ya'll need to find a way to get your husband's credit score up. Google ways to do this--some say that a small revolving credit or loan account that is paid early will help boost a score. But this is only if he doesn't have a large amount of debt currently.
You may be stuck for now, unfortunately. If you can afford $1000/month in rent, I would suggest finding a realtor who may be able to negotiate a lease purchase for you. While the market is starting to bounce back, some homeowners are desperate to sell and may be open to "creative" financing.
In any case, I feel your pain. Our house in Columbia will probably be foreclosed on so I'm out of the game for awhile. FHA says that they will loan within 3 years of a foreclosure or related event, but since it was a FHA loan to start and knowing what I know about underwriters, I'm not holding my breath. Fortunately, my hubby was not on the loan. Unfortunately, he's yet to find permanent, stable employment and like your husband, his credit score is stalled at 590.
If YOU have good credit and have credit cards, you can add your husband as an authorized user and your payment history will reflect on his credit which will bring up his scores. I was in the mortgage business for 10 years but have been out of it for about 12 years now. We are in the process of buying a home & I was shocked at how things have changed and how strict they are. Even those with perfect credit are having to bend over backwards to make it happen. I would work on building the credit before going any further.
If YOU have good credit and have credit cards, you can add your husband as an authorized user and your payment history will reflect on his credit which will bring up his scores. I was in the mortgage business for 10 years but have been out of it for about 12 years now. We are in the process of buying a home & I was shocked at how things have changed and how strict they are. Even those with perfect credit are having to bend over backwards to make it happen. I would work on building the credit before going any further.
Yea we have thought about doing that but my income isn't enough on my own. My husband is the one that makes the money. My career has taken a nose dive living here. Thanks for the idea though.
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