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FHA LOANS WITH BAD CREDIT
I just have a question ,I was wondering if my husband was able to qualify for a fha mortgage in the future. He makes 26-27 yearly and has bad credit we been working on his credit. his credit right now is experi FICO 628 ,679 equifax ,675 trans. We haven’t miss any payment in the past 2 years and 3 months but he does have 2 charge offs that are 2 years old and 2 medical collections
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1 Reply
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It may still be possible for your husband to get an FHA mortgage. Here are some key points to cover with your husband:
FHA Loan Requirements:
- Credit Score: The Federal Housing Authority requires a minimum credit score of 580 for a prospective homeowner to be eligible for a 3.5% down payment on a loan. It may be possible to do this with scores between 675 and 679, but anything less than 580 may require a 10 percent deposit instead.
- Awards: The administration considers a Debt-to-Income Ratio of 24% perfect, while 28% is the highest they will accept. FHA guidelines usually allow a DTI ratio of 43% or more as long as the lender is fully aware of the situation and can offer mitigating factors.
- Job History Stability: An employment history of at least two years is generally rewarding since it can help eradicate credit issues whenever they pop up.
- Collections and Write-Offs: Most people with charge-offs and collections need a better credit score. On the other hand, having a good payment history for the last 2 years is awesome and hopeful for new lenders. The reason for having a payment history is that banks tend to consider the bigger picture and try to understand why so many write-offs exist.
- Compensating Factors: If your husband can provide proof of regular contributions to a savings fund, which can later be used as collateral for a loan to buy a house, it will strengthen his chances of success.
Steps to Increase the Odds:
- Enhancing Credit: Try to make timely payments and resolve issues concerning collection to enable better improvement on the credit score.
Check Out Your Concerns with an FHA Lender: An FHA Mortgage Approved Lender will assist with custom user guides and satisfaction with eligibility criteria.
Closing Thoughts
There are challenges in this case, but your husband could get an FHA loan, provided her credit keeps improving. In this regard, an appointment with the lender will help provide services according to the needs.