Question Details

Courtney Cook, Home Buyer in Austell, GA

Realistically, what are current minimum scores?

Asked by Courtney Cook, Austell, GA Mon Mar 19, 2012

Even with extra down? What lenders will accept less than 600?

Help the community by answering this question:

Answers

4
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 Tue Apr 17, 2012
You can also talk to your local lender and if your current credit score is not quite high enough, they can show you ways to quickly raise your score. Best wishes in your househunting!!
0 votes Thank Flag Link Tue Mar 20, 2012
Realistically you need at least a 600 to get a descent rate and a low down payment. But it is really easy to get your scores up, I hope you take a few moments and read my blogs concerning credit. You can take a few steps in advance to place yourself in a better position when applying for a home loan


Best of Luck!

http://www.trulia.com/blog/george_raymondo/2011/11/can_i_buy…
0 votes Thank Flag Link Mon Mar 19, 2012
It depends on the lender and the loan program. Most lenders like middle scores of 640 or higher, but Wells Fargo will accept 500 credit score with a few stipulations..I would call around to some of the larger lenders and also get an estimate as to what they charge to originate a loan. The fees can vary widely depending on the lender and that is more money out of your pocket!
0 votes Thank Flag Link Mon Mar 19, 2012
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