Credit Score in Phoenix>Question Details

Lili Zayas, Renter in Phoenix, AZ

580 credit score and medical debt

Asked by Lili Zayas, Phoenix, AZ Thu Jun 6, 2013

Hello I wanted to know of the possibilities of getting a loan with a credit score of 580, I have a student loan that I'm paying monthly (automatic pay) no default there but I do have a lot of medical debt due to medical problems ... now my work history is good there is no break for the past 5 years or so stable income make about 30, 000 a year. My husband has almost no credit its not bad he just has none. What are my possibilities of obtaining a loan for a home with minimum down payment?

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I can go down to 580 with compensating factors we also do in-house credit repair. Please contact me.
0 votes Thank Flag Link Wed Jul 31, 2013
Good afternoon Lili,

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

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes Thank Flag Link Tue Jun 18, 2013
580 credit score it is quite low, most of the lenders I know would not be able to qualify you. Nevertheless you need to get in touch with a loan officer and ask for advise.
0 votes Thank Flag Link Mon Jun 17, 2013
Some brokers will say yes, but many lenders do require a 620 and or above. I have free tips on my blog here on Trulia that will help you boost your credit score in no time.

Best of Luck & Have a great day;

Christina Solorzano;
CEO & SR Credit & Mortgage Consultant of
Everlasting Credit Repair
Making home ownership more than a dream...
Retired Mortgage Banker
0 votes Thank Flag Link Tue Jun 11, 2013
Hello Lili,

Teresa Sullivan
Peoples Mortgage
She will be able to get you on the right track. Let her know I sent you!

Have a GREAT day!
0 votes Thank Flag Link Fri Jun 7, 2013
Contact Lizy Hoeffer Cobalt Mortgage she's one of the best in the industry she will be able to answer all your questions. Tell her Steven Good have you her info. 480-593-4510
0 votes Thank Flag Link Thu Jun 6, 2013
Have you spoken directly with a lender? This would be the first step so that they can give you specific recommendations on your scenario.
0 votes Thank Flag Link Thu Jun 6, 2013
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