Minimum credit score home loan reduced to 560 with a 10% down payment. With a 580+ credit score you’ll only need 3.5% down.
Florida Buyers and borrowers please use the contact us Tab to your left with questions.
The 580 credit score mortgage is a great way back for borrowers that have compensating factors to get approved for a home loan. Compensating factors are other qualifications that make up for the low credit score. A long time on the job, extra savings (reserves) beyond the 3.5% minimum down payment, proof of on time rent (housing) payments for the past year or two, these are just a few examples of things that can make up for having a low credit score with a manually underwritten FHA loan.
FHA manual underwriting is what makes it possible to close home loans for people with bad credit scores. The underwriter will review your loan file carefully, looking at your credit explanation letter, your most recent twelve months payment history, your income, and employment history.
This FHA 580 credit score mortgage is a big help for first time home buyers that don’t have a large enough down payment, or 660 credit scores for a conventional home mortgage. Home prices in Florida are at record lows and for one of the first times in history it is actually cheaper to own your own home than it is to rent.