Credit Score in Sacramento>Question Details

Tamashere, Renter in Sacramento, CA

My credit score is currently 580, what are my chances for getting pre-approved for a home loan?

Asked by Tamashere, Sacramento, CA Sat Mar 17, 2012

I've also since paid off one debt and will have another paid off in about 2 months.

Help the community by answering this question:


I'd say pretty good if you use the right lender, have the down payment and you can show that financially you are in a good position. Talk to a broker first that actually knows credit, paying off debt may not be necessary depending on the accounts and how old they are. I recommend the lenders network, if any company can get you a loan they can. I have had clients with under a 580 score get approved... Brilliant real estate minds with a ton of lending contacts. Tell them I referred you!

Good Luck!
51 votes Thank Flag Link Sat May 11, 2013
Thanks Jessica!
Flag Fri May 9, 2014
Based on this recommendation, I just got a pre-approval through them also! Well, they had a lender call me and he got me pre-approved, but still... YAY!
Flag Thu Dec 19, 2013
The Lenders Network got me approved! I didn't think I was ever going to get my credit scores up enough to get approved lol.. Thanks for the recommendation Jessica!
Flag Fri Oct 25, 2013
You should really go talk to Home Loans For All. They're highly rated and they'll be able to find you lenders that can get you approved. I'll include a link to them.
40 votes Thank Flag Link Tue Jul 28, 2015
I have had a few client's close with a 580 score with The Lenders Network too so I know it;s possible!
7 votes Thank Flag Link Sun Jul 14, 2013
We can go down to 560 for FHA, but there's no question about it, it's a tough go. At 600+ your obstacles are greatly diminished and stand a better chance. Having said that, I have helped literally hundreds of perspective buyers looking to place themselves in a better position by doing a cleaning out of the closet. But take my heed, going about it without the guidance of a seasoned Loan Officer could cause you months of delays. So make sure you do your research or team up with someone who has been down road many times. For further information click on the click below. It has help a lot of people.

Best of Luck!

Can I Buy A Home With Bad Credit?…

No Score What Can I Do?…

Click on the link below for further information
6 votes Thank Flag Link Sun Mar 18, 2012
5 votes Thank Flag Link Thu Aug 22, 2013
Who knows a good private lender, who will also finance difficult clients?
5 votes Thank Flag Link Sun May 12, 2013
I can go down to 580 with an FHA loan and 3.5%, and under that with 10% down and 6 months piti reserves
Flag Tue May 14, 2013
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.

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.

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
5 votes Thank Flag Link Mon Apr 16, 2012
to pay off old debt renews their impact on your credit score. this is bad advice.
Flag Fri Sep 25, 2015
You are not quite there YET, but sounds like you are working on getting your credit straightened out. I would suggest you start talking with a mortgage broker/lender now so they can review your credit to see why your score is low and give you suggestions to improve your score, get a plan and timeline in place for you to purchase a home.

Keep in mind too that the lower your score the higher the interest rate you will be paying, so if you can improve your score it will help you in the long term.

If you need help finding a lender, just call or email one of us direct, we all have lists of lenders our clients have had success with to get you started.
5 votes Thank Flag Link Sun Mar 18, 2012

It sounds like you are headed in the right direction.
Paying off debt and working towards your goal of home ownership.

There is a company here in Sacramento - Blue Water Credit - who can assist you
with restoring your credit. They are the only credit repair company in California that is rated by
the Better Business Bureau. Blue Water is trained specifically to partner with their clients
to get control of their credit scores. Many of my clients have gone through their program. they are buying their first homes too.

Please let me know if you would like Blue Water's contact information. I am happy to send to you.

Your loan options will increase when your credit score gets over a 620.....not as hard as it might seem.

Good luck to you!

Michele Peterson
Keller Williams Realty
(916) 743-5934
CA DRE 01872795
5 votes Thank Flag Link Sun Mar 18, 2012
I agree with Gina. Call a reputable lender, or call one of us for a referral. I have a couple of lenders who have done excellent work for low score individuals. It's not just your credit score that counts, it's your ability to pay back the loan, so salary, time at your job and amount of outstanding debt also in consideration.

If you speak to a lender, you may find out that your score is too low, but you should also find out what to do to bring your score up. A great lender will help with suggestions to get you there. It's better to find that out now, rather than wait six months, and still possibly have some debt on your credit report holding you back.

By all means, speak to a lender!!! Great time to buy, and who knows, you might just qualify.
Call or write if other questions, or you need a referral.
5 votes Thank Flag Link Sat Mar 17, 2012
Flag Sat Mar 17, 2012
Have you tried The Lenders Network? They helped me find a lender that approved our loan and my score was just 590. I highly recommend them. Hope this helps!
4 votes Thank Flag Link Sat Aug 22, 2015
I have a 586 credit score. And I want to buy a house. Is there a lender in the DC, MD, VA area that can get me a loan.
4 votes Thank Flag Link Thu Jul 9, 2015
It's much more difficult to get a home loan with a score below 620 but not impossible. Have you been late on anything in the past 12 mos? I suggest speaking to a experienced loan officer and going though your credit report with them. Many times there are simple things that can be done to bump your score up quickly. Give me a call if you would like me to assist.
4 votes Thank Flag Link Sun Mar 18, 2012
Credit History and Score Requirements
For those interested in applying for an FHA loan, applicants are now required to have a minimum FICO score of 580 to qualify for the low down payment advantage, which is currently at around 3.5 percent.

If your credit score is below 580, however, you aren't necessarily excluded from FHA loan eligibility. Applicants with lower credit scores will have to put down a 10 percent down payment if they want to qualify for a loan.

So if you're planning to buy a house, and your credit score doesn't meet the minimum, you should weigh the advantages and disadvantages of putting down a larger down payment or using those funds to try and improve your credit score first.
Benefits of an FHA Loan
3 votes Thank Flag Link Tue Jul 28, 2015
I would connect with a lender right away. A reputable lender will evaluate your situation and be able to tell you when and how you can qualify for a home loan. In the meantime, start looking at areas so that you know where you want to buy. When you do receive your pre-approval your Realtor can get to work showing you homes! Let me know if I can be of assistance with lender information or any other questions.
3 votes Thank Flag Link Sat Mar 17, 2012
Here are seventeen more answers to your question:…
2 votes Thank Flag Link Sat Mar 17, 2012
Jim Walker, Real Estate Pro in Carmichael, CA
Hello Tamashete;

Please dont get discouraged by answers you have heard. New programs come and go. DO NOT pay a company to fix your credit, it won't work. Lenders can tell you what YOU need to do. It's not that tough. Some cities like Roseville and West Sac have assistance programs.

Motivate yourself by looking at homes. Find a realtor that you enjoy and makes this stage fun.

Email anytime

2 votes Thank Flag Link Sat Mar 17, 2012
Pretty slim. Paying of the the last two debt does not mean your credit score will miraculously go up especially if you have multiple recent late payments and/or credit collections or judgements in your report. I would speak with a loan officer and see what he or she can do to boast your score. Of course there will be lenders out there that will say that they can give you a loan but you better believe you will have the worst rate and worst terms offered score so I would try to get your score to at least the minimum acceptable score. Good luck.
2 votes Thank Flag Link Sat Mar 17, 2012
With a 580 credit score, Id recommend speaking with a mortgage broker. You can still get a qualified but you'd have to put down at least 10% down, with 5% being your own funds and the rest can be a gift. Good luck. But you're talking about paying your debt off. If you plan on paying off your debt, do so and when you do pay them off be sure to ask them to send you a letter stating the current balance and them agreeing to take it out your credit report. If you do that, your credit scores will eventually go up.

If you can wait, I'd advise you to cause you can get a better rate when you meet the standard bank credit requirements....

Good luck.
2 votes Thank Flag Link Sat Mar 17, 2012
You are on the right track. Not too many people are loaning with credit scores under 620 or 640. My recommendation would be to get with a lender and let them point you in the right direction. If it's your debt to income ration that is the issue, that will be different than if you have had credit challenges. He/She can point you in the right direction and it may not be as bad as you think.

Good luck...
2 votes Thank Flag Link Sat Mar 17, 2012
You can get an FHA loan but not with 3.5% downpayment. It will be either 5 or 10% down depending on your credit at the time of purchase.
2 votes Thank Flag Link Sat Mar 17, 2012
Hello Tamashere, yes you may qualify FHA from fico scores between 500-579 with 10% down or minimum 580 fico score may qualify FHA 3.5% down or as low as .5% half percent down payment program from a minimum 640 fico score up to 417k. You may consider 3% down conventional from a minimum 620 fico score or even 5% down conventional with NO Mortgage insurance (Lender paid MI) up to 417k.

If you figure out what cities/zip codes you are considering, minimum number of bedrooms and the maximum payment you are looking to achieve you can be emailed listings to study and compare. Your fico scores can be raised within 3-4 days in most cases to qualify for programs, rates and terms as necessary.

You will need to be pre-approved to be able to meet an agent to view and submit offers on any homes of your choice. Your qualifications will be determined by your credit profile, debt to income ratios, fico scores, loan program and how much you want to invest into the down payment and closing costs.

It only takes a few dozen questions to qualify, go over your options and email you listings to study and compare. Here are some links to study as well as web reference links to many loan program pages offered...

Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
Veteran & VA/CalVet Loan Specialist
REO & Short Sale Specialist
Credit Repair At No Cost
ALL Loan Programs Available
22+ Years Experience
BRE# 01140252
NMLS# 297251
9am till 5pm by phone Monday thru Saturday, Sundays by appt., EMAIL ANYTIME 24/7 or

If my response was helpful, consider clicking Thank, Link or Best Answer.
1 vote Thank Flag Link Wed Jul 29, 2015
I am from Carrington mortgage. We will do your loan down to a 550 score. Also pay all your closing cost. Also pay for the appraisal, so I would say not bad. Direct lender and loan servicer
We do manual underwrites and don't base the approval off the computer and use common sense

Michael Diaz 380048
1 vote Thank Flag Link Tue Jul 28, 2015
My credit score is 580 can I get a home mortgage loan? I have no credit cards or anything showing on my credit except for past due accounts
1 vote Thank Flag Link Mon Dec 30, 2013
0 votes Thank Flag Link Fri May 6, 2016
I work for a direct lender in the mortgage industry who offers conventional, FHA VA, and USDA loans in 47 states. For VA home loans it's NO down payment. Are lowest score we accept for government loans are 550 when most lenders require a 620 and brokers a 580. You have to have two years of income with a score over 550 with bankruptcies discharge date 2 years and over. We have basic guidelines and a pretty easy process. Feel free to text me or call me anytime up to 10:00pm Eastern with any questions.
Brian Young 214-797-3479. NMLS#902687
0 votes Thank Flag Link Sat Feb 20, 2016
Licensned in 43 states not just CA, I work for a direct lender in the mortgage industry who offers conventional, FHA VA, and USDA loans. The best part is unlike lendingnetwork we keep your info private not broker it out. Are lowest score we accept for government loans are 550 when most lenders require a 620 and brokers a 580. You have to have two years of income with a score over 550 with bankruptcies discharge date 2 years and over. We have basic guidelines and a pretty easy process. Feel free to text me or call me anytime up to 10:00pm Eastern with any questions.
Brian Young 214-797-3479
NMLS# 902687
0 votes Thank Flag Link Mon Dec 28, 2015
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