About Eric Sexton Expertise All aspects of buying and selling homes including: General real estate questions, Contracts, Negotiations, surveys, title work and general questions about mortgages. I CAN NOT GIVE LEGAL ADVICE AND WILL NOT BE ABLE TO ANSWER QUESTIONS WHERE LEGAL ADVICE IS NECESSARY.
Experience
I have been a real estate agent for 6 years and a broker for 2 years.
Organizations National Association of REALTORS and Texas Association of REALTORS.
Expert: Eric Sexton Date: 6/28/2007 Subject: FHA Loan
Question Good Morning, I have a tenant that is interested in purchasing the home they have been renting from me.The home will qualify for a FHA loan, but unfortunately their credit score is in the 540-550 range limiting financing options.Is it worth their effort to pursue a FHA loan with the low credit score? Thanks for any advise.
Answer Chris,
The general answer is yes, it is worth it for them to check out an FHA loan. While FHA looks at a person's credit score, they are more concerned about payment history, income and debts.
Since I am not a mortgage person, I am not aware of all the different options that are available. I would suggest having your tenants contact two or three different mortgage brokers or lenders to discuss the possibilities.
