Financing in 75103>Question Details

Jared & Amy, Home Buyer in 75103

Any suggestions for Texas Loans with a credit score of 600?

Asked by Jared & Amy, 75103 Tue May 4, 2010

My fiance and I are looking for a Texas Loan with a credit score of 600. We're wanting to buy in Canton, TX. We also only want our monthly payments around $500 with $500 down and a fixed rate. Any suggestions?

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I just sent a text message to a loan officer I work with to see if they can work with your credit score. There are some gov grants out there but I don't know if they would apply to Canton. If the USDA is still doing loans, which my contact said they were but not letting it known, you might be able to go with a 100% financing and just put the earnest money down. However, you would need to be prepared to pay for an inspection and possibly an appraisal up front. I'm really close to Canton so I would love to help you if we can. Feel free to contact me.
The loan officer just got back with me and says she very possibly can help you. Please give Ashley a call at 469-474-9694. Thanks and hope this will help. I'm located in Forney.
1 vote Thank Flag Link Tue May 4, 2010
Most lenders stopped accepting USDA loans. Although the money is not out completely yet, plus there are 2 bills that have been in Congress to make sure that the USDA doesn't run out of money again. Depending on why your credit score is that low, I maybe able to help. There are lenders out there that still take credit score below 620 depending on the situtation. Why is your credit score that low? Which one has the lower FICO score? These are just few of the questions that I would need to know to better answer your questions. But yes there are lenders out there that still do lower than 620 if your FICO score is not a true indicator of your credit score. I can be reached at 214-405-7264 or ssmith@1bluesky,.com. Having several options still available at this time. I can help if I know more of your story.
Sera M Smith
Loan Officer
1 vote Thank Flag Link Tue May 4, 2010
If you haven't visited with any qualified loan officer(s) yet, do so--see exactly what your budget can handle and check your your credit score--their scoring is different--your loan officer may suggest ways to improve your credit as fast as possible. Currently FHA loans do require a minimum credit score of 620 and 3.5% down--there may be lenders willing to work with a lesser score, however the interest rate may be higher. In the meantime work on improving your credit, pay all bills on time, keep credit cards below 50%, pay off old debt, pay down debt, dispute old negatives, etc.
1 vote Thank Flag Link Tue May 4, 2010
620 is the minimum for FHA. As mentioned, the USDA might be an option as it will allow down to 580 and 100% financing. But, the USDA is currently out of money and not currently buying loans. There is a bill in congress to permanently fund the USDA program. But, it will likely be several weeks at best before that gets passed and put into place.

Jay Hurst
Web Reference:
0 votes Thank Flag Link Tue May 4, 2010
Hi, Jared

Most lenders today require a FICO of 620 or higher for FHA and VA financing. 660 or better for Conventional. If you don't have one, ask your realtor to refer you to a loan officer that is also knowledgeable in credi repair and can assist you with building your credit. Upon doing so, you will not only be eligble for mortgage, but save yourself 1,000s in closing costs, and 10s of thousands over the life and term of the loan.
0 votes Thank Flag Link Tue May 4, 2010
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