Credit Score in Des Moines>Question Details

Andrurs, Home Buyer in Des Moines, IA

Can I get a mortgage with a 580 credit score?

Asked by Andrurs, Des Moines, IA Tue Jan 5, 2010

I have a 20% downpayment. Also, I did send in my information for pre-approval back in November. Just in case the laws or rules have changed since then. Any help, any idea, if I can still get a loan... Thanks in advance!

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6
Yes you can! Especially with that much down! FHA goes down to 580 credit scores even though most banks don't go below 640. I have had several of my clients get approved with scores from 580-640. I send my clients to The Lenders Network, they work with a handful of lenders that can approved a 580 FHA loan. If anyone can get you approved they can!

Good Luck!

Jess
0 votes Thank Flag Link Thu Jun 27, 2013
With a little planning and preparation, I am sure you can get some good options. There are programs available for low credit scores, but it would be even better to spend some time working to improve your credit profile & scores. This will help you in getting a better home financing deal and definately in the long term with future credit needs. Please let me know if you still need any assistance...hopefully you have it all wrapped up...

Charles Chedester
NMLS # 8636
Web Reference: http://www.chedester.com
0 votes Thank Flag Link Sun Jul 22, 2012
We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.


It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website. http://consumer-action.org/

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE. http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm


The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.


Trevor Curran
NMLS #40140
0 votes Thank Flag Link Sun Apr 29, 2012
Hello-
I have a lender called American Financial Resources who can still go down to 580 so you could try and give them a call. I would help you out with it, but am currently working on getting licensed in Iowa. In Colorado we have a program called CHFA that allows down to a 580, but that won't help unless you are looking for a loan out here. I'll bet Iowa has something similar. I am a former Iowan...feel free to contact me for any mortgage advice. Go Hawks!!
Web Reference: http://www.afrmortgage.com
0 votes Thank Flag Link Wed Mar 10, 2010
Not knowing your finances and the 20%-- of what price-- Why not visit with any qualified loan officer(s) and see exactly what your budget can handle and check that score again. FHA loans require a minimum score of 620--your loan officer may have tips on how to improve it in the fastest way possible or may have other suggestions/options.

Anna
0 votes Thank Flag Link Thu Jan 7, 2010
Hi Andrurs,
Typically you would need a 620 score minimum for a lender to give you a mortgage but there are private investors out there that might be willing to help out. If you have any further questions feel free to get ahold of me.

Thanks

Josh Gillum
RE/MAX Real Estate Group
6600 University Ave.
Windsor Heights, IA 50324
Licensed Real Estate Agent in Iowa
515-271-7728 Office
JoshuaGillum@gmail.com
0 votes Thank Flag Link Thu Jan 7, 2010
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