Credit Score in Kentucky>Question Details

Charlotte, Home Buyer in Kentucky

my credit score is 590 can i get a home loan

Asked by Charlotte, Kentucky Sun May 16, 2010

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You can get an FHA loan with those scores. FHA allows you to go down to a 580 with just 3.5% down. I'd check out The Lenders Network they have helped a lot of my client's get approved with low credit scores.

Good luck!
2 votes Thank Flag Link Wed Jul 10, 2013
Good afternoon Charlotte,

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

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0 votes Thank Flag Link Wed Jul 10, 2013
You will need a 620 credit score and a mimimum 12 months of excellent credit with 3 trade lines either on credit report or alternative.
0 votes Thank Flag Link Thu Dec 23, 2010
fha loan companies in louisville, ky
Flag Thu Mar 15, 2012
Yes...if you are a veteran using your VA loan. Or you may qualify for an RHA loan for rural housing. Your best bet may still be FHA financing. You may qualify for it, you would just need additional money down~10%, and they do have stricter guidelines. FHA actually funds all the way down to a 580 credit score.

Every lender still has their own underwriting guidelines so you may need to shop around.

Good Luck!

Mark Atteberry
0 votes Thank Flag Link Mon Nov 15, 2010
It depends, as loan qualifications involve much more than your credit score. Your income, assets, employment situation and other monthly bills will all factor into when you can qualify for a loan, too.

But the 590 score you mention IS below the 620 required by most lenders for FHA loans. I would encourage you to work with a local mortgage broker who can help you look at the details of your credit report, and give you some action steps you can take in the short-term to bring your score up to what's needed. Also, they should pull their own copy of your credit report and the three scores, because it's the middle of those three that will actually matter. If you're getting that score from one of the online places you can pull it yourself, it's unlikely to be the same as the score your lender will actually use.

In addition, your mortgage broker will be able to look at the rest of your financial situation and troubleshoot any other items which might make it tough for you to get a loan, and work with you on them, too. They might even have other suggestions for your situation, like finding a co-borrower.

Good luck!
0 votes Thank Flag Link Sun May 16, 2010
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