October 24th, 2013 2:28 PM by Bob Rutledge
THERE IS NOW HOPE FOR YOU AND EVERYONE WHO WOULD LIKE TO BE A NEW HOME OWNER WITH LESS THAN PERFECT CREDIT SCORES!
What is a bad credit score for a new mortgage? The chart tells us that the average credit score is 678, so anything less would be considered below average. Most lenders in and around St. Louis are using a 640 credit score as the line to determine a poor credit score.
FHA mortgages is the preferred mortgage program for home buyers who are looking for a bit of leniency when it comes to buying their next new home.
So why is it so difficult to get a loan if you don't have a 640 or higher credit scores when FHA guidelines call for a 580 or higher credit score. The answer is; lender overlays a condition that the lender places on you the borrower to reduced presumed risk of application.
That has changed as we have gone back to being able to provide FHA loans to borrowers with a 580 or higher credit score!
Your credit had stopped you before in becoming a new home owner but now it can be the starting point to your next new home. If I can get you approved via an Automated Underwriting System you are nearly home.
It may be necessary to have you supply your application with an FHA approved compensating factor. There are 10 FHA compensating factors here are a few:
I can help you quickly determine if your new home is right around the corner. Want to see if you qualify for an FHA mortgage today, give me a call or click the link below to find out more information:
FHA and Less Than Perfect Credit Scores