FHA Loans

[Alex Schmidt]

How does a FHA loan work with two people. Ones credit score is excellent, one is poor. Is there anyway to use one persons credit score but two different incomes.

[Albert Bui]

FHA does not have a credit score requirement in actuality. You'll find that if you go to the big banks they will need a min of 620-640 fico scores, smaller to mid sized mortgage bankers will have scores all the way down to 500.

Banks create the min amount of fico that they would like to take in terms of risk.

To answer your question the middle score of the lowest borrower will be used to determine qualification. So if you have a credit score that meets the min of the bank writing the FHA loan then we'll use your income since your score meets the min. If your coborrower or cosignor has a score that does not meet the min then their income cannot be used and only your income will be used in your qualification.

I work day to day as a mortgage planner so I am familiar with FHA.