Credit Score in Los Angeles>Question Details

Jusaskin, Home Buyer in Los Angeles, CA

do i qualify for a home with a credit score of 588?

Asked by Jusaskin, Los Angeles, CA Sat Sep 13, 2008

Help the community by answering this question:

Answers

17
There are lenders that can do FHA loans with a 580 score.. I recommend The Lenders Network they will be able to refer you to a lender willing to work with lower credit scores. If you are in need of an agent I would love to help you out..

Good Luck.
4 votes Thank Flag Link Thu Sep 12, 2013
Jusakin,

Neighborhood Assistance Corporation of America (NACA) is helping people just like you become homeowners. It is a mortgage assistance program that features no down payment, no closing costs, and great interest rates (5.875% on a 30 year fixed as of today). Unlike traditional home loans, NACA is not based on your credit. Instead, you have to show the ability to pay the mortgage that you qualify for (such proof includes tax returns, bank statement, W2's, etc.). Additionally, NACA offers comprehensive counseling where you are educated on the complete buying process.

However, the purchased property must be owner occupied and program does limit the purchase price. Maximum purchase prices are $362,790 for a single family home or condo, $464,449 for 2 units (duplex), $561,411 for 3 units (triplex), and $697,696 for 4 units (four-plex).

For more information on NACA, contact me as I am a preferred NACA Realtor and helped successfully helped several clients through the program. I'd love to schedule you for the next NACA Home Buyer's Workshop in your area.

Lezlie Brazil
Keller Williams Realty
4644 Admiralty Way
Marina Del Rey, CA 90202
T 310-991-4263
F 310-861-0207
E lezliebrazil@kw.com
Web Reference: http://www.lezliebrazil.com
3 votes Thank Flag Link Sat Sep 13, 2008
You have to show the ability to pay with a "traditional" home loan as well.
Flag Fri May 9, 2014
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
1 vote Thank Flag Link Sun Apr 29, 2012
You must be over 60. Don't listen to this guy, he has no idea how the new economy works. Licensed or not. Read the others replies, before considering this old persons shoddy advice.
Flag Fri Feb 28, 2014
If you need help to raise your credit scores fast,
We specialize in raising FICO scores dramatically, in weeks, not months or years.

As a matter of fact with one of our most recent clients we raised his score from 552 up to 729 in 3 weeks.

Hope This Helps

Contact Us!

IZM Credit Services
800 N Rainbow Blvd
Las vegas, NV 89107
(702) 758 - 3799

IzmCreditServices.net
0 votes Thank Flag Link Sun Apr 19, 2015
You should fix your credit before you go worrying about buying a house.

Just because someone can get you a loan, doesn't mean you should get a loan. That FICO score demonstrates either an inability or an unwillingness (or both) to service debt. Now you are getting ready to make the biggest financial purchase in your life...and with a 588 FICO?

Let's say it's not your fault. Someone stole your identity. Someone used your credit to commit fraud. You lost your job because you worked for Solyndra, got a divorce, donated a kidney, or some other catastrophic financial life event beyond your control. Even if you could get a home loan, you will pay pay higher than other people with even just decent credit. you will pay higher insurance. You may pay higher utilities. Why not delay gratification if only long enough to fix the root of the problem first, so you have a fair chance to make it as a homeowner.

There are people out there that just want a loan (Look at some of the posts below) and don't care that what they are going to give you is over 30% higher than anyone else in the market right now. 5.875? Seriously? 5.875% isn't even on most lenders rate sheet as it is higher than any rates available. Did she tell you that you have to pay $50 per month for membership to the association? Oh...and for five to ten years? Or, that you have to attend rallies and participate in demonstrations at least five times per year? She is going to tell you that they are going to make sure you have the ability to pay which isn't different than anyone else in the market right now. The Consumer Financial Protection Bureau and the new Dodd Frank rules require EVERYONE to make sure that you have the ability to repay.

Also, NO loans are based on credit. Anyone that says they are, isn't telling you the truth. Credit is only one component. Credit, colateral and capacity. The three "C"'s to lending. Every lender in the world (U.S.) is going to look at your credit, at your income and at the home you are trying to purchase, equally. All three components have to pass underwriter scrutiny.

My point is there are lots of people that will tell you they can get you a loan and many if not all probably can. The question is, should you get one now considering your credit profile instead of fixing the problem so you have a fair chance for the future?
0 votes Thank Flag Link Fri May 9, 2014
It seems that your scores in your range should work. Lenders like myself can go as low as 580 when it comes to credit scores. Of course, your other finances will need to be in place as well including your income, debt, assets, employment, expenses, etc. The best thing for you to do is to speak with a knowledgeable lender like myself to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!

Brian Nguyen
Sr. Mortgage Banker
NMLS # 659743
Phone: 949.667.2887
brian.nguyen@nafinc.com
0 votes Thank Flag Link Thu May 8, 2014
FHA is as low as 580, but you need to talk with a local lender as they also have additional requirements a lot of times.
0 votes Thank Flag Link Wed Mar 19, 2014
You really have to work on improving your 588 credit score. You can hire someone else to do it for you or fix your credit yourself, but, you need to start doing something about your credit TODAY. Here'a a few quick credit repair tips to help you get started.

http://www.creditfirm.net/blogs/5-simple-credit-repair-tips.html

Good Luck!!
Web Reference: http://www.creditfirm.net
0 votes Thank Flag Link Thu Aug 22, 2013
Yes you can get a FHA loan with a 588 score.
0 votes Thank Flag Link Mon Jul 29, 2013
Yes it is possible to get a FHA home loan with a 588 credit score. Give me a call if you would like to discuss.
0 votes Thank Flag Link Tue Jul 16, 2013
FHA really isn't credit score driven, it's the Banks and Lenders that set those score requirements. There are a few lenders that go down to 580 with FHA, I personally have closed on several homes with clients around and under 600. I recommend all my clients that have credit issues to check with The Lenders Network, check them out. If anyone can get you approved they can!
0 votes Thank Flag Link Tue Jul 16, 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. 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 Sat Apr 28, 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 Wed Apr 18, 2012
J.
IMHO you need to consult a professional mortgage consultant who will need information not disclosed here.

If you would like help, please contact me.
0 votes Thank Flag Link Sun Sep 14, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Yes but there are still more questions to be answered so feel free to contact me and good luck to you.
0 votes Thank Flag Link Sun Sep 14, 2008
Dear LA Homebuyer:

You might still be able to qualify for loan with a 588 score, however, it would not have a very good interest rate or terms. Also, it would put you out of the running for many First Time Home Buyer (FTHB) programs and benefits (if you are a FTHB). You might be better served to work on your credit score and get it into the mid to high 600's. This will open up a whole new world of possibilities for you, and I am sure there will still be deals on the market when you are ready to buy. If you need a referral to a reputable person to help you on the road to cleaning up your credit, do not hestitate to contact me. Sometimes a little patience, yields a lot of reward. Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
0 votes Thank Flag Link Sat Sep 13, 2008
good evening....categorically, no, it does not put you out of the ballgame....there is more i need to know in order to answer your question....debt ratio, time on the job, etc, etc..i am here to help..best regards....bob mcclure- mortgage now- farmington, michigan licensed in 19 states including yours....
0 votes Thank Flag Link Sat Sep 13, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer