Financing in 92301>Question Details

skinneykinney, Home Buyer in Adelanto, CA

Can i get a home loan with a 560 credit score?

Asked by skinneykinney, Adelanto, CA Sun Feb 24, 2013

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I've seen some of my clients with a 560 score here in California get approved with a 560 score for FHA and VA, it all depends on the lender. Go to The Lenders Network they can help you find a lender to do your loan.

Good luck!
2 votes Thank Flag Link Mon Sep 9, 2013
Good afternoon,

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

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
2 votes Thank Flag Link Mon Jul 29, 2013
1 vote Thank Flag Link Sun Feb 24, 2013
Keep hope alive. I have seen low 500 fico score applications get approved with stipulations. It can happen but each situation is on a case by case basis.
0 votes Thank Flag Link Wed Nov 13, 2013
Trevor Curran gave you fantastic advice. I would agree with all that he stated.
0 votes Thank Flag Link Tue Sep 10, 2013
hey Skinny I hope you have got your score up by now.
0 votes Thank Flag Link Mon Jul 29, 2013
I asked one of our local lenders this questions and this is what he had to say:

For the most part the banks want your credit score to be above 640 for FHA, but there are a few places that will do it as long as you have a credit score above 580. The loan is a lot tougher to do at 580 but it can be done. Let me know if you need anymore info

Todd Zancaner
0 votes Thank Flag Link Thu Feb 28, 2013
They are correct, you need 10% down and you need to go FHA.. Many lenders do cut off at 560 I can go down to 500.
0 votes Thank Flag Link Thu Feb 28, 2013
FHA allows financing with 10% down with a 560 credit score. I currently have 1 source that can fund these in California. Please keep in mind however that credit score alone is not the determining factor and often the reasons for the low score disqualify you even if the score does not. If you'd like to find out if you qualify, please contact me.
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Sun Feb 24, 2013
I agree with Charles, You'll really need a 25-30% down payment to get a loan. You can also work on gettign your score up. Maybe there are some inaccuracies on it that could be corrected that would raise your score.
0 votes Thank Flag Link Sun Feb 24, 2013
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