Financing in Goodlettsville>Question Details

Comer8486, Home Buyer in Goodlettsville, TN

Does your credit score have to be a 620 to be approved for a home loan? Is there anyone that works around it if your income is substantial.?

Asked by Comer8486, Goodlettsville, TN Tue Mar 20, 2012

My credit score greatly declined due to medical debt and student loans. I have since caught the student loans up and working on medical debt.

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6
You should consult with a mortgage professional about your specific situation. There are many options available. I would suggest looking at an FHA loan. It might be the answer to your question.
0 votes Thank Flag Link Wed Mar 21, 2012
Many lenders can offer financing at or below where you are currently for FHA and VA financing. It'd be best to seek out a loan offer you respect/trust for guidance/to proceed.

Additionally, the "substantial income" argument unfortunately doesn't help you, if anything it may make an underwriter wonder why she should approve your loan (I'm just playing devils advocate here) because the first thing they ask is, "He makes substantial income, why can't he keep his bills current"? Obviously everyone has other things going on, a smart loan officer will simply zero in on what's needed to sell the underwriter on your loan and avoid the pitfalls inexperienced Loan Officers usually fall into.

Find a good loan officer for you and get the ball rolling!
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0 votes Thank Flag Link Wed Mar 21, 2012
If you look at FHA financing you may have options.
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0 votes Thank Flag Link Wed Mar 21, 2012
Under most circumstances yes, but there are more factors into getting a mortgage than just a credit score. The reason I say most circumstances is that many loan officers will just turn you away instead of trying to help. I once had a client that had a 780 and it took her several months to finally get an approval b/c she didn't have a long credit history nor was her employment history to any lender's liking.
0 votes Thank Flag Link Tue Mar 20, 2012
Under most circumstances yes, but there are more factors into getting a mortgage than just a credit score. The reason I say most circumstances is that many loan officers will just turn you away instead of trying to help. I once had a client that had a 780 and it took her several months to finally get an approval b/c she didn't have a long credit history nor was her employment history to any lender's liking.
0 votes Thank Flag Link Tue Mar 20, 2012
Credit scores are only a minimum threshold, the underwriter must also look at the payment history and all of the other pieces in the application. The reason credit scores get so much attention and publicity is because they are easy to understand, but they are only a tiny piece of the puzzle. You could have an 800 credit score and still not meet the requirements. Keep up the good work, sounds like you are headed in the right direction.
0 votes Thank Flag Link Tue Mar 20, 2012
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