You could get an FHA Loan with a Lower Credit Score

Earlier, 620 was the magic number to get a home loan. Then credit scores rose to 640 in the last couple of years with banks getting stricter with their policies after the economic downturn.

Now, reports say that low-income and first-time home buyers may be able to get a loan with lower credit scores. Theoretically, FHA allows scores as low as 580 but individual banks and mortgage companies follow their own guidelines as to whether such low scores are worth the risk.

Wells Fargo, for example, has been qualifying buyers with credit scores of 600. But… there is always a caveat – debt-to-income ratios have been lowered.

I am not a loan officer, but I would be happy to refer you to one that will help you get a home loan. Call me on 803-348-9922 or email me at vsashikant@gmail.com.

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