How hard is it to get approved for a housing FHA loan?

Question

With the housing market right now the way it is. Is this even possible because it seems like you have to have perfect credit. This would be for a first time buyer that is looking at a house that is around 350k. Is this even possible? The credit history is excellent but the score is low. That's due to only having one credit card and have never been late and the card is currently paid off. Thanks ahead of time!

Answer 1

How low is your credit score and also how much will you be willing to put down for a loan.  Try this web site and see what kind of rate you get with FHA.  Also with this amount you might not need FHA loan depend on where you want to buy your house.

http://www.amerisave.com/partner/chongth...

Answer 2

FHA has a minimum of something like the high 500's low 600s credit score.  A 3% down is required, as well as payment of PMI.  So on $350 one would need $10500 down and will pay either a PMI premium up front or monthly.  They will also need a household income over $100,000 to qualify for that much.  The PMI would not be tax deductible because the household income would be too much.