FHA & VA Manual Underwriting Down to 500 Credit Score
North Shore professionals with high incomes but overextended credit — we see you every week. When your credit score drops from maxed cards, the big banks disappear. We manually underwrite FHA and VA loans when everyone else says no.
Joe Shalaby
Founder & Senior Loan Officer
NMLS #139369
"The North Shore has some of the highest property taxes in the country. Add private school tuition, club memberships, and lifestyle expenses — credit cards get stretched. Your income is strong, but your score took a hit. That's exactly what manual underwriting solves."
Why North Shore Homeowners Need Manual Underwriting
High Credit Utilization
$50k+ in credit card balances are common here. Even with perfect payments, high utilization tanks your score. Manual underwriting looks past the number.
Million-Dollar Properties
Median home in Winnetka is $1.2M+. FHA limits cap at $529k, but we have NON-QM jumbo options with manual underwriting for higher amounts.
Property Tax Burden
$25k-$50k annual property taxes affect DTI. Manual underwriting with compensating factors can approve higher DTI ratios.
FHA Manual Underwriting
- Credit scores down to 500 FICO
- No overlays on collections or high utilization
- DTI up to 50% with compensating factors
- 2 years post-bankruptcy approval
VA Manual Underwriting
- No minimum credit score
- $0 down payment, no PMI
- Residual income favors high earners
- Great Lakes Naval Station veterans welcome
Recent Closings on the North Shore
FHA purchase — attorney with $80k credit card debt. Manual underwriting approved with strong income documentation.
Navy veteran, Great Lakes stationed. Credit dropped after medical bills. $0 down, no PMI, manual underwriting.
Consolidated $55k credit cards. Monthly payments dropped $1,400. Score recovered to 700+ in 4 months.
FHA & VA Loan Questions for Chicago North Shore
Can I get an FHA loan on the North Shore with a 520 credit score?
Yes. We manually underwrite FHA loans down to 500 FICO in Winnetka, Wilmette, Glencoe, and all North Shore communities. Most lenders won't go below 620 due to overlays.
What's the FHA loan limit in Cook County and Lake County?
For 2025, the FHA high-balance limit in Cook County is $529,000 and Lake County is $529,000 for single-family homes. For higher amounts, we have NON-QM options with manual underwriting.
I'm a veteran with credit card debt. Can I get a VA loan?
Absolutely. VA loans have no minimum credit score with manual underwriting. We specialize in helping veterans with credit challenges get approved with $0 down and no PMI.