if i have a low credit score and no down pmt do i qual for fha?

Question

what are the qualifications for fha or fannie mae loans, i have a low (528) credit score and no down pmt ?

Answer 1

Hello, i am going thru the same thing right now. my mid score is 578 and i was told that it needs to be 580 or higher and i will need at least 3% down payment. the down payment can be included in the loan. if i find out anymore info i will contact you. if you are located in CA i can really help you with the lender i am working with.

Answer 2

Pending which state you are in, and pending that county, there are grants that the counties give out which would be your downpayment money and also be put towards your closing costs. Plus if you have your realtor put in a seller concession(say 3% of your purchase price which is added to your purchase price, so really you are financing a little extra but it would be a kick back towards closing costs) You could purchase your home with with as little as as $1300 out of pocket expenses. You will have to come out of pocket for your appraisal, homeowners insurance, & home inspection. Everything else would be taken care of.

The only catch with grants are you dont have to pay them back as long as you live in the house for a certain amount of years. I've seen 5 yr terms then it forgives it self.

Also FHA allows gifts so if you can have a relative gift you your 3% down, you can buy a house FHA with a 528 score. And it can be multiple relatives too.

If you have any open judgements they would have to be paid though and any open collections they could remain open and unpaid.

Good Luck!!

Answer 3

probably not. An FHA loan normally requires a down payment. And you need to get your credit score up too.

Answer 4

If you are in a rural area, it is possible that you can apply for other incentives that have a no DP program.
Try the USDA Rural Development website if you qualify for that.