A: In theory, you should be able to obtain an FHA-backed mortgage. However, mortgage lenders are so afraid about being asked to buy back failed loans that they have added "overlays" to the minimum requires standards for credit score (and other underwriting criterion). The practical effect is that it is very, very hard to obtain a loan with a score much below 620. You should review your credit history and correct any errors and work hard to get your score up off the bottom before you try to apply for a loan.
Credit life insurance is sold to homeowners as a means to pay off the mortgage in the event of the death of the homeowner.
Read MoreSome homeowners will pay this 3.8 percent tax when they sell their homes, but only if they meet certain conditions.
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