My son in law wants to purchase 10 acres of land, which includes a 3 bedroom\2 bath mobile home. He has been at his job for 12 years, but has no credit. He'd like to put 10% down. He's 57 years old and would be a first time home buyer. Would he qualify for a FHA mortgage?
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Best Expert Answer
FHA loan rules state that borrowers with FICO scores below 580 are required to put 10% down. However, lender standards are often higher, usually in the mid 600 range. FICO scores won't be the only factor for loan approval-credit/payment activity will also be reviewed and no borrower should come to the FHA loan process with fewer than 12 months of on-time payments on all financial obligations. That would include utility bills, rent, etc. The no credit issue may be a problem depending on the lender.
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