How can I get a FHA loan when my credit score is a 581?

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.

Ask the expert
Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
Submitting your question...

Question received! Check back later to see if your
question gets published.

Q: Can my friends and I buy a house together?
JUL 18, 2021
A:

The answer is "yes," you can certainly all buy a house together.

Read More
Q: What is the difference between "rate" and "APR"?
APR 26, 2021
A:

APR is perhaps the most misunderstood part of mortgage finance. "Rate", or more properly "contract interest rate" is the actual rate of interest you are being charged...

Read More
Q: How do I find out who owns my mortgage?
MAR 15, 2021
A:

The owner of the loan is most often the "investor" -- the entity who put up the actual funds to make your mortgage happen.

Read More
Add to Homescreen?
X
X
Install this web app on your phone :tap and then Add to homescreen