| If you fall into one of these categories you should | | | | determine if you qualify or not, your low FICO score |
| definitely consider an FHA loan. | | | | will not disqualify you from receiving an FHA loan. |
| - Considering a home purchase with less than perfect | | | | FHA Looks at Overall Credit Profile |
| credit | | | | FHA's philosophy is that the majority of borrowers |
| - Considering a home refinance with less than perfect | | | | overcome these financial setbacks. You are truly NOT |
| credit | | | | the high risk your FICO score indicates; even though |
| - Considering buying a home but have not established | | | | your credit score may indicate sub-prime status. |
| traditional credit. | | | | FHA will assess your income, recent payback status |
| - Currently in an ARM loan that is due to reset - and | | | | with current lenders as well your current |
| have less than perfect credit | | | | debt-to-income ratio giving borrowers a chance to |
| If you have less than perfect credit or no traditional | | | | purchase or refinance a home. |
| credit you may be in luck due to easy FHA loan | | | | Non Traditional Credit Qualifies |
| qualifications. | | | | What if you have no established credit? You may |
| Why? | | | | have never used credit cards, had a car loan, student |
| FHA loan qualification guidelines are perhaps the most | | | | loan, or mortgage. These are considered traditional |
| lenient in the mortgage world because they do not use | | | | means of credit which are recorded with the 3 major |
| FICO scores exclusively to assess your risk as a | | | | credit bureaus. |
| borrower. | | | | FHA qualifications consider non traditional credit |
| Many With Low FICO Scores Qualify for FHA Loans | | | | references as proof of responsible money |
| FHA makes it's decision on whether or not to grant | | | | management. Payments like rent, utility bills, cell phone, |
| you a loan based on your total credit profile. For | | | | personal loans, and even regular deposits into a |
| example, your credit score may have taken a dip | | | | savings account as proof of "credit worthiness" |
| because of some isolated events in the past, job | | | | So if you thought that your bad credit or non credit |
| lay-off, illness, divorce etc...Fortunately FHA lenders look | | | | disqualified you from purchasing a home - think again - |
| at your bill paying history over the last 2 years to | | | | an FHA loan may be the answer. |