Credit Score in 28214>Question Details

Maria Arella…, Home Buyer in Charlotte, NC

what if my score is below 580, can i still get a home loan?

Asked by Maria Arellano, Charlotte, NC Sat May 5, 2012

my credit score is 577, would i be able to get a small home loan?

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You can get an FHA loan with under a 600 middle score with some lending institutions but not many. I would recommend finding a broker or service to help you locate a reputable lender that can approve your loan at a decent rate. I have client's who have got approved and received a good rate at The Lenders Network with FHA and VA home loans. If anyone can find you a loan they can!
4 votes Thank Flag Link Sun Jul 14, 2013
Thank you, I just filled out the form and I am keeping my fingers crossed
Flag Mon Jun 30, 2014
The size of the loan plays more of a factor than the credit score itself. I have had people with scores as low as yours and even lower get approved for mortgages. That is not to say you definitely can.

but there are options possibly avaialble to you. part of it is what is on your credit report...How old some of the items are, any positive credit to replace any negative credit recently, how much your mortgage payment is goggn to be in relation to your income, and other factors.

If you want to contact Christopher Ayer at 704-771-3954 or e-mail him at christopher.ayer@mortgagefamily.com He should be able to help you or tell you what you need to do to get approved.

Dave diCecco
Realtor/Broker
http://www.davedicecco.com
1 vote Thank Flag Link Sun May 6, 2012
Maria,
Only a lender can approve or deny your application. Conventional financing requires higher scores than this, but there may be alternative options from a mortgage broker depending on your other mitigating factors.
Here's the uncomfortable truth however, if you could get a loan right now the terms may not be that good and the question would be, why would a lender loan to someone with that score.
My suggestion would be to take some time to address the issues that have caused your scores to be so low. Are there errors on your report, dispute them. Do you have a reliable source of income? Do you have a budget and do you stick to it?
Solving these issues now, before you take on a serious long term commitment of a mortgage will improve your chances of keeping the home.
1 vote Thank Flag Link Sat May 5, 2012
Size of the loan is more dependent on debt to income ratio than on credit score. I have lenders that can do FHA loans with your credit score as well as work with you to raise your credit score. Give me a call at 803 372 8033.
1 vote Thank Flag Link Sat May 5, 2012
Hello,

My name is David Tucker. I am writing to find out if you offer any lease to own options for consumers with less than perfect credit in the Charlotte area?

I am trying to rebuild my credit and do not wish to signed for 20-30 years. I do NOT need a house, just a 2bed/2bath condo.

Any assistance provided would be greatly appreciated.
dk.tucker@gmail.com
Flag Sat Nov 30, 2013
I am wanting to start my family and as a first time homebuyer I am having a hard time as everyone else getting credit established, I work 2 good jobs and I am more than ready for a permanent foundation ,
Flag Mon Nov 18, 2013
Maria:

A smaller loan amount doesn't have any less requirements for an applicant. Please read my blog on how to buy a home with poor credit.

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
http://www.everlastingcredit.com
https://www.facebook.com/EverlastingCR?ref=hl
http://www.trulia.com/blog/christina_solorzano/2013/06/how_t…
0 votes Thank Flag Link Tue Jun 18, 2013
Good afternoon, Maria:
Are you still in the market? If so, while minimum credit score requirements have risen at many lenders, we still can find financing at 600+ middle credit if you meet the criteria in the Trulia Blog "I have bad credit and no savings. Can I get a home or am I stuck renting?" http://goo.gl/5RG3w If you are under 600 middle FICO, here are ten tips for improving yoru credit: http://www.trulia.com/blog/dfisher/2011/08/ten_tips_for_repa… If you appreciate this answer, please give it a "thumbs up", or if this was the most helpful answer, please say thanks with a "best answer" click .
0 votes Thank Flag Link Thu Feb 21, 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://www.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/microsites/moneymatters/dealing-w…


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 May 15, 2012
Have you had a Mortgage lender pull your credit? Your score can be different depending on who pulled your credit. In mortgage lending we pull a tri-merge credit report which is compiled of all three major credit reporting agencies (Equifax, TransUnion, and Experian). We then take the middle number of these three scores and use that in determining your qualifying score.

While the credit score is part of the equation in lending, there are other factors that also determine what you would qualify for in terms of a mortgage. The amount of the mortgage loan is based off of your income, job stability, other expenses and your ability to pay back the mortgage loan.We offer a free service to clients that gets them on track to buy whether it's in 5 months from now to 5 years from now. I am sure someone in your area also offers similar programs.

It's really important you work with someone who is going to educate you and set a clear path for you to increase your scores and to teach you good habits to maintain those scores or keep improving them. Good luck!
0 votes Thank Flag Link Thu May 10, 2012
Getting a loan with your credit score will be very hard, at least this is what I am experiencing with clients of similar credit scores. I would suggest learning how you can improve your credit score. There are quite a few lenders who can assist you with this process and get you where you need to be to purchase a home if you are wanting to finance. If you did find a lender that would loan you money to buy a house, more than likely what you will pay in interest would far exceed the financial benefit of home ownership. Be wise with your money, learn the facts of what affects credit and then consider buying a home when you are ready. Good luck to you!
0 votes Thank Flag Link Thu May 10, 2012
credit scores are not the sole qualifier for approvability for a mortgage loan. Getting "mortgage ready" is right thing to do. Having low scores like you have is just a symptom of poor 'credit' health.

Often times there is more to just having enough open and active trade lines that report your on time payments each month but having creditors report your timely payments is the best way to ensure that you have healthy enough scores in order to be approved for a mortgage.....small or large.

A good loan officer or a Consumer Credit Counseling Agency will provide you the analysis you need in order to rebuild your scores. I've seen 100 point turn-arounds in as little as 6 months.

If you make the right changes, you could be celebrating your Thanksgiving in your new home this year!

Go for it!
0 votes Thank Flag Link Sun May 6, 2012
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