FHA Mortgage s

I'm constantly asked what's the lowest credit score a person can have and still qualify for a new mortgage. The answer is, there's really not one, depending on which kind of mortgage you're interested in, within reason. Logic would tell us that if your credit score is in the 400 range it's probably not going to happen, but it's fair to say, that if your credit score starts with a 5, you have a chance at getting a mortgage. FHA Home Loans are based more on a "big picture" type qualification system for mortgages. They look at the past 2 years credit and employment and go up to 97.75% of the homes selling price, or appraised value, whichever is lower. You can actually get an FHA Home Loan with no credit whatsoever. In this situation, your loan is based on whatever payments you've made on things like utilities, credit cards, cell phone bills, etc. FHA Home Loans are definitely the way to go if you've had credit trouble. It's also possible to get what's called mortgage broker gifts, or concessions for up to 3% of your loans down payment, but you must be able to come up with 3% of your own money. Where you get that money isn't as important as that you acquire it. Additionally, FHA Loans do not count any installment loans, as part of your monthly debt, if it's to be paid off within 10 months. This type of loan may be for a car, boat or other installment that has a specific termination or payoff date. These are not revolving credit, like credit cards. There are some other guidelines that apply for FHA Home Loans, but this gives you a general picture. FHA Home Loans are government loans, backed by HUD (Housing and Urban Development). These mortgages can be NOO (non owner occupied), or investment loans and are usually assumable if the new buyer qualifies. If you still have questions about FHA Home Loans, drop me a line. I'll do my best to answer it for you.