Sub-prime FHA is Back Baby! AKA – FHA Portfolio Lending

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They are not calling it that, now we are calling it Low Score FHA, FHA 580 Credit score loan, or “Portfolio FHA Program”. As a side not lenders are offering Gr$$n FHA discount program for high credit score borrowers. Rates below 3% fixed are possible with the Gr$$n FHA loan program.


Back on topic….

Many borrowers do not realize until the visit the FHA website and start poking around the official underwriting guidelines that the real minimum FHA credit score is actually 500 with compensating factors.

FHA loan approvals and commitments are really all about compensating factors. Meaning if you have a low score, you could still get a conditional approval by having extra savings, a long time steady job. Positive stuff to offset the bad credit, high debt-to-income ratio. FHA loan approval requires borrower explanation letters, handwritten are best (underwriters know the borrower wrote and not the broker). So with your loan application and income documents you should also submit handwritten letters about your credit history bad and point out the good – especially credit accounts not on your credit report that are good references. Letters about other things you think could help you get the loan.


Contact Chuck today about our “FHA Portfolio” for those that have low credit scores and other issues or our Gr$$n rate and fee discount program for the extremely qualified. Either end of the credit qualifying spectrum we’ve got you covered. At We help when others can’t….nationwide via the web or throughout Florida locally.





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