Credit Score in Columbus>Question Details

Michelle, Renter in Shady Lane, Columbus,...

what is the lowest credit score you can have to obtain a loan?

Asked by Michelle, Shady Lane, Columbus, OH Thu Aug 11, 2011

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Hi Michelle,
The acceptability of a credit score depends on the lending institution and the type of loan you're pursuing. FHA hasn't had a minimum score for some time, but most FHA lenders require at least a 620 score. The FHA guidelines are changing and a minimum score is likely. Some lower credit scores are workable for select lenders dealing with higher risk loans. Their requirements at these lower scores might be more money needed for down payment or considerably higher interest rates (or both). I'm not a lender and may be missing something. I suggest you call Pam Mahon with Real Living Mortgage at 614-273-6366. She is an FHA expert and Real Living Mortgage has a joint venture with Wells Fargo Mortgage. They have many, many loan programs and lower credit scores can be improved over time if not accommodated immediately. I hope this helps. Call my office if you need additional resources or have other questions. 614-273-7735.
Thank you for your inquiry,
2 votes Thank Flag Link Thu Aug 11, 2011
I have a lender who can approve loans for a 530 credit score! Please feel free to call me at 614-774-7982!
1 vote Thank Flag Link Fri Aug 12, 2011
For private money loans there is no min score but rate about 9-12% and fees about 4 points so it is expensive and you need 20-40% down, depending on the lender. FHA allows 500-579 FICO with 10% down. First Mortgage Does 500-529 FICO, First Gaurentee does 540-559, and Pacific Union does 560-579 FICO, anyhting above 580 requires 3.5% down and is available for down payment assistance programs if you can show 12 months housing history paid on time. United Mortgage does 580-599, Carrington 600-629, MWF 620-639 and everyone does 640+ FICO FHA with low rates, Today rates with no origination , discount points and under 1k broker/lender fees is about 3.75% with 640 FICO. Conventional loans require 620 FICO and most VA lenders will do 620 FICO. To answer your question, ZERO score is the lowest to get loan and if you can show you pay alternative bills ontime you can get FHA loan with 3.5% down. Private money will do any or no score based of property strength.
0 votes Thank Flag Link Wed Mar 14, 2012
Lenders are looking for the probability that you will repay the loan. You can offset a low credit score by putting down more money. The lower your score, the more money it will most likely take you for a lender to make the bet that you will repay the loan.

You should speak with a mortgage professional and find out your current credit score. If you find items that have been reported in error, protest them with the credit reporting agencies to help improve your score. If you start now, you will be ready to buy as your credit score comes in allignment with the needs of the lenders to feel comfortable making the bet that you will be a good credit risk.

Good luck!


Chris Schilling
Turbo Realty
0 votes Thank Flag Link Tue Mar 13, 2012
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