When we refer to a borrower’s “credit score,” we are typically referring to the middle of his three scores (from the three major credit bureaus); lenders almost always correlate to the middle score.
The minimum “middle score” for conventional financing is 620. The minimum middle score for FHA is 640 at almost all lenders, with a few exceptions.
Our lenders that allow FHA borrowers to have scores under 640 either require very strong files or “manual underwriting.” In either case, it is difficult to get such files approved in a timely manner, so we stick with our 640 minimum.
Borrowers with scores slightly too low can do a “rapid re-score.” We have been very successful with “rapid re-scores” in recent months. We will discuss the process in a future blog.
Founder/Broker | JVM Lending
(925) 855-4491 | DRE# 01524255, NMLS# 335646