Easier To Get A FHA Loan!

Perhaps the door to an FHA-insured mortgage just opened a little wider.

With no fanfare or public announcements, two of the largest FHA-approved lenders have backed off their controversial "overlay" requirements on FICO scores (lender overlays are qualification requirements that can be more stringent than FHA's own requirements). This has been a problem with our lenders. I would say to the Lender that is not required by FHA, and they would respond, but it is required by our underwriting! Very frustrating not to know all the rules!!!

Looks like both Wells Fargo and Quicken Loans are now willing to lend to applicants with 580 credit scores. This is really what FHA had as minimums. Because of the economy, many credit scores (FICO scores) have been dropping. These two are the two largest originators of loans. Before they have insisted on the 620 FICO score, so this is good. If you came in lower than the 620, lenders would not even look at your application.

An estimated one third of Americans now have FICO scores below 620, according to one consumer group's estimate. (From Inwood News)