Good Morning!

Here is one way to purchase a home with less than a 620 credit score. It’s called a Manually Underwritten FHA loan.

We can still do Manually Underwritten FHA loans down to a 600 credit score. …but, the rest of your file has to fit the manual guidelines.

Here’s what the manual guidelines want to see…

1) No collections, late payments in the last 12 months (older than this is usually ok).

2) Steady employment and provable income over the last 2 years.

3) Your back end Debt to Income ratio can’t exceed 43%. (house payment + other recurring monthly debt / gross income)

4) You really need at least 3 trade lines (credit accounts) with a good history for the last 12 months.

5) No defaults on any previous government insured loans (student loans).

6) No bankruptcy in the last 2 years, and if you have had a BK – no lates after the discharge.

7) No foreclosures in the last 3 years.

Believe it or not, that’s pretty much it.

Thanks for reading! …and, have a great day!