One of my customers just closed on their home last week in Lakeland. The loan was FHA and their credit score was 515. The buyer put the minimum 3.5% down. The interest rate was under 5%. I had my suspicions about the loan closing, but it did. It was one of the easiest loans I have ever been a part of. I am not a loan officer, so this post is not about me getting new loans. I want buyers to know that some lenders have programs that help buyers with low credit scores, while other lenders limit the credit scores to a low of 620.
There are factors that helped this buyer qualify for the loan. One important factor is length of time of employment. Another factor is reserves, which means money in the bank. If a buyer has collections, the collections may be required to be paid off.
Buyers should ask people they trust for a referral before they choose a lender. Realtors have a lot of experience with banks and mortgage companies. Do your homework before you make a final decision. I would be happy to share more information about this particular transaction and the name of the lender.