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Old 07-19-2010, 11:59 PM
 
Location: Tennessee/Michigan
26,077 posts, read 34,161,873 times
Reputation: 16485

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NEW YORK (CNNMoney.com) -- The once wide-open doorway to homeownership closed a teensy bit more this week when a key government agency announced a proposal to no longer allow mortgages for borrowers with very low credit scores.

Sub-500 FICO? No FHA loan for you - Jul. 16, 2010
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Old 07-20-2010, 01:56 AM
 
Location: California
26,599 posts, read 19,853,728 times
Reputation: 19865
500 is pretty low. I wouldn't lend money to anyone with a score like that.
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Old 07-20-2010, 06:01 AM
 
Location: Plano, Texas
1,676 posts, read 4,934,774 times
Reputation: 656
Most lenders already will not approve a loan with a fico score under 620. Some lenders have a minimum score requirement of 640. I only know of 1 lender that will go down to a 580 score.
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Old 07-20-2010, 06:25 AM
 
23,004 posts, read 43,284,036 times
Reputation: 11854
Default Get real...

Below 500 !?!?!?!!!!

Do you have any idea how awful one's credit would have to be at that score?

Even in the freest lending days of the bubble a lender would have to be positively beyond reckless to think that a borrower with a FICO that low would have any likelihood of repaying...

I doubt any significant number of such loans ever were made.
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Old 07-22-2010, 03:17 PM
 
706 posts, read 1,282,274 times
Reputation: 92
Quote:
Originally Posted by VictorBurek View Post
Most lenders already will not approve a loan with a fico score under 620. Some lenders have a minimum score requirement of 640. I only know of 1 lender that will go down to a 580 score.
VictorBurek confirms my experience.
I went to 9 lenders and tried Homepath, etc.
All needed a minimum score of 620.

But score is not all of it.
My score was 744, but DTI bit me harder than my credit score.
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Old 07-22-2010, 07:23 PM
 
12,046 posts, read 12,594,508 times
Reputation: 4503
Only goes to prove that government can do some stupid things when they have the will to do it... mandate the FHA to give loans to sub-500 FICO borrowers... uh.. stupid comes to mind... I wonder why politicians pander for votes like this at taxpayers expense...
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