Anyone know where to get FHA mortgage with 600 credit?

Discussion in 'The Watercooler' started by MidwestMom, Mar 15, 2009.

  1. SomewhereOutThere

    SomewhereOutThere Well-Known Member

    I just read on the internet that our bank is going to start insisting on 620, which we don't have, for FHA. That makes me not trust our lender. Does anyone know anyplace that has mortgages for 600 for an FHA? Our income qualifies for the loan.
    Otherwise, doublewise here we come...and I couldn't care less because doublewides are really nice. But my daughter has told me that anyone who lives in a trailer park is called "trailer trash." It makes me sick, but I know it's true. For hub and I, they can call us anything they want and we don't care. But it hurts to think that two kids who already have iffy self-esteem would be called names for this reasons. It's a nice park--they won't let you in if you ever had a drug conviction or child abuse.
    But we still want to know if a regular 600 FHA is doable.
    Life! You think you are all settled down and it never fails to throw you a curve :sick: And renting isn't an option. We have four dogs that are part of the family. Plus when we rented, we would always get thrown out after a year because the owner would put the house up for sale. That's how it is around here. I feel like somebody always has their foot on our butts.
    We lived in this house for six years and we thought it would be forever...I'm so depressed and nervous.
     
  2. Lothlorien

    Lothlorien Active Member Staff Member

    MWM, the bank might still approve you, but it might be at a higher interest rate or for less money. You don't know yet. There are also other banks and lenders out there. Are you sure that is what your credit score is? Both of yours are the same? Is this your first mortgage? Were either of you in the military?
     
  3. rejectedmom

    rejectedmom New Member

  4. Janna

    Janna New Member

    You may want to look in the local papers for those types of lenders. But, know there is a difference between a lender giving you money to buy a stick built home and a lender giving you money to buy a doublewide.

    So, for a home for example, you could try your local XYZ lender. But, if you'd go trailer, you need a trailer lender (i.e. Greentree).

    Does that make sense?

    I know just for this state (PA), area banks, local banks, do not lend on double wides unless they are on a permanent foundation. The credit score you (or husband) have, and your acceptance, may also have to do with the money you have down. Double wides, for example, typically require 20% down. So, if you don't have that (or same with a home) and the good score to go with, it just gets harder and harder.

    I'm sorry you're in such a tight spot. I hope something good happens here, MWM.
     
  5. SomewhereOutThere

    SomewhereOutThere Well-Known Member

    Hub's credit score is 600. He was a vet. We used part of the VA once. Don't know if any is left. We are trying for FHA.

    We can be approved for a double wide, but we don't have land. We'd have to live in a park.
     
  6. DaisyFace

    DaisyFace Love me...Love me not

    Hi MWM--

    I think you really need to call around....

    We are in a "credit repair" mode ourselves...and so we have been making calls to different lenders to find out what we need to have to qualify for a loan. (We are not even at the stage where we are ready to apply for a mortgage, yet--we are just trying to make sure that all of our "ducks are in a row" as far as FICO scores, down payment, debt-to-income ratios etc).

    We were told that mortgages were available to applicants who had a minimum FICO score of 580....and no serious delinquincies within the past two years.

    So that's pretty minimal as far as qualifying...

    Call around...see what is available to you.

    And there is nothing wrong with a manufactured home. A lot of them are actually bigger and nicer than our "real" first house. You can live in a trailer without being "trashy"....

    Best of luck!

    --DaisyF
     
  7. C.J.

    C.J. New Member

    Double check on husband's VA eligibility. If you did not default on the last loan (or did not allow someone to assume the old loan who was not a vet), you could find yourself in a better situation with a VA loan.

    I've worked in this industry for (way too) many years. Some people have legitimate reasons for credit delinquencies (major health issues, job loss due to layoff). If you can document the reasons, many lenders ask for a letter of explanation to put in their loan file to present to an underwriter to review when the loan is submitted for approval.

    Check with a realtor who does a lot of business in your area - ask for a referral for a lender who is proficient in FHA/VA lending.

    Depending upon how "rural" the area is, USDA (used to be called Farmers Home Administration) offers rural housing loans - and I know they loaned on mobile homes attached to a permanent foundation at one point - at least in my area of the mid-west.
     
  8. C.J.

    C.J. New Member

    P.S. As I was out at lunch, I drove past a sign - "House for Sale, Owner financing available". That might be another option for you. There are some people out there sitting on houses paid in full that they don't want to take care of any longer, and may be willing to sell it with an owner finance. They're likely to get more money monthly with an owner financed mortgage than a CD at a bank.
     
  9. susiestar

    susiestar Roll With It

    You might also try a mortgage broker. We had better credit but no down payment $ (LONG story people who were here a few years ago might remember). husband had just finished grad school and gotten a job. I was a stay at home mom because my health and all Wiz' issues. The mortgage broker really helped us, and we actually ended up with a much better loan than our credit union would have given us with a full 20% down payment! I checked on it at the time and again a couple of months ago. I was surprised, but quite pleased. We ended up with a brand new home on 3/4 acres with a smaller payment and mortgage than several older homes on smaller lots we looked at. And, fingers crossed, with new homes you have less maintenance for a few years!

    I know we just got a flyer from the broker and he is working with people with scores in the low to mid 500s, so maybe one in your area could help you.
     
  10. SomewhereOutThere

    SomewhereOutThere Well-Known Member

    In March 2009, things are way different. If your score isn't 620, even for a FHA, you stand little chance of approval.

    We're going to get the trailer (double-wide). They do their own financing. Meanwhile we can build up our credit and buy a house in a few years. We have simply run out of options. Even the places that used to go down to 580 and up to 620 now---FIRM. I've called all over. It's impossible and disheartening to anyone who wants to buy and isn't at 620. And it doesn't seem to matter WHY your credit score isn't up to par. Underwriters are busy with refinances and people who already are pre-approved. Other people go to the slush pile. I've tried large banks, small lenders, and local people that were recommended to me. Chances are poor.
     
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