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Minimum credit score for FHA mortgage?


jasper13
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The last post in this topic was posted 3923 days ago. 

 

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Hi all, newbie here trying to wade through conflicting information from a mortgage broker, bank lender and online information. My fiance and I are looking at purchasing a home. Income isn't a problem, and neither is her credit, but as the lower of the two, my credit is. Mine currently sits at 599/583/537. My question: What is the minimum score for an FHA loan and what's the best way to go about raising these quickly?

 

Items affecting score:

$90 medical bill: COLLECTIONS. Trying to pay for delete.

$146 Verizon: COLLECTIONS. Trying to remove.

$2,005 on $2,000 credit card: PAID OFF IN FULL. Paid last week, hasn't reflected in score yet. Was never late, but was my only credit card.

$17,255 auto loan with 4 over-30 payments: PAID OFF IN FULL

Other credit:

$6,000 in student loans: Paid on time for almost 7 years now.

 

The mortgage broker advised working to get bad items removed and having my fiance add me to her credit cards. A bank lender, however, said that last piece wouldn't work and that there's no benefit to my credit for being an authorized user of someone else's card. If I was to be added and receive credit for it, they'd need to do a hard credit request to see if I was eligible to co-own the account. Which is right?

 

The bank lender is also proposing I take out a $3,300 secured loan for 12 months, as well as get a secured credit card. They're also trying to get my fiance to take out a personal loan to consolidate her credit card debt, but at a rate of 5% higher than her credit cards (they said she could refinance to a lower rate once her credit improves). The lender's reasoning being getting those credit cards freed up would raise her revolving credit-to-debt ratio and look better for potential lenders. That said, lenders won't be using her credit score, they're using mine. We'd be looking at another $200/mo. (until we refinance) if we move those credit cards to a personal loan. Is that really worth it, especially if adding me to those cards wouldn't do any good?

 

What's my best plan of action in terms of getting more credit? Should I move ahead with a secured loan and a secured credit card? Should we add me to her or other family members' credit cards? Should we consolidate some of her credit card debt into a personal loan?

 

Thanks for the help! Have learned a ton already, but feeling stuck here.

 

-jasper13

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