FHA Credit 600+

Borrowers with 600 Credit & Above – Now Qualify for FHA Loans

 

FHA Loan Rates Austin, TexasIn today’s market, most lenders require a minimum credit score of 640; however, our expert mortgage team has received an exception from investors. Now, qualified borrowers with a credit score of 600 are eligible for an FHA Loan. If you are looking into buying a new home, they are your go-to mortgage team.
   
Austin homebuyers, and borrowers nationwide, with FICO scores between 600 and 640, can buy the house of their dreams with the financing they need. To contact a loan expert, use the contact form to the right or call (800) 234-0907.

   

FHA Loan Qualification Guidelines

  1. FHA loans for 600 scores and more are for primary residences only

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  2. Potential homeowners need approval from automated underwriter- this means everything in their submitted file meets the FHA guidelines for final approval

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  3. Show proof of at least 2-month’s reserves, either from a savings or checking account, but a retirement account is not permitted

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  4. Must have a maximum debt-to-income (DTI) ratio of 43%- the DTI should include:

    • All deferred student loans

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    • All installment loans that fall under a 10-month timeframe

     

  5. Need a maximum seller contribution of 3%

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  6. Items not allowed include:

    • Late mortgage payments occurring in the last year

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    • Declining income

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    • Bond and down-payment assistance

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    • A high balance that is over the normal FHA maximum loan

     

  7. Only available for single-family homes

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  8. Available for purchase loans only – for any refinanced FHA loans, your credit score must be at least a 620

 
To contact a loan expert, use the contact form to the right or call (800) 234-0907.
 
Read more about Austin FHA loans: FHA – Frequently Asked Questions.
 

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