Credit Score in Chesapeake>Question Details

rheeyamis, Other/Just Looking in Chesapeake, VA

Can you really get an FHA loan with a credit score of 500? If so, will the monthly payment be high due to the interest rate (over 6%) ?

Asked by rheeyamis, Chesapeake, VA Tue Sep 10, 2013

After the research I have done online and from asking close family members and friends, I have gotten mixed reviews on my question.

Help the community by answering this question:

Answers

5
It is possible because the absolute minimum credit score that the FHA allows for is 500. But it is rare to find a lender who will be able to give you a loan with that score. If you do happen to find a lender to give you a loan, then yes, chances are the interest rate will be higher to make up for the risk of giving out a loan to someone who has a low 500's credit score. I have been able to give out FHA loans with credit scores as low as 580 with great rates, friendly service, and quick turn times so give me a call if you would like to speak about a loan.

Well I hope this helps! If you have any further questions or if you need a loan, feel free to contact me. Also, if you found this helpful please leave me a recommendation if you can!

Good Luck!


Brian Nguyen Sr.
Mortgage Banker
NMLS # 659743
Phone: 949.667.2887
brian.nguyen@nafinc.com
1 vote Thank Flag Link Mon Feb 24, 2014
FHA will back a loan with a credit score of 500. However, there are really no lenders that will give a loan for such a low score today. 620 is the minimum for most all lenders. I do have a lender that will help try to improve your credit score. If you would like any information on this please feel free to contact me.

Carolyn Guy
Performance Realty
(757) 373-7248
1 vote Thank Flag Link Tue Sep 10, 2013
Do you know if its possible to improve my credit without opening new lines of credit? My plan was to pay my bills down, but a credit counselor told me over the phone that paying my bills would not be enough. Is this true?
Flag Tue Sep 10, 2013
You really do need to speak to a mortgage officer. I am sure the rate will be higher than the going rate of 4.5% or so due to the low credit score. He/she would be the one to tell you if your over all situation fits the loan profile. I should note that even if not able to buy now the loan officer would provide you a direction to move to be ready to buy in the future.

I recommend calling David Katz at 757 572-7251 or Jim Belote 395-5626
1 vote Thank Flag Link Tue Sep 10, 2013
There is no if so, your FICO score will need to improve dramatically to qualify. Paying off debt making payments on time should be paramount.
1 vote Thank Flag Link Tue Sep 10, 2013
I would have to say no. The best thing you can do is speak to a loan officer who can tell you what you will have to do to get your credit score where it needs to be. I would be happy to get you in touch with a local loan officer.
1 vote Thank Flag Link Tue Sep 10, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer