Financing in Russian Hill>Question Details

Seanf, Home Buyer in San Francisco, CA

If a home buyer has a less-than-perfect credit score, how hard will it be for them to get a mortgage these days?

Asked by Seanf, San Francisco, CA Mon Apr 8, 2013

And what interest rate are home buyers likely to pay?

Help the community by answering this question:


For every credit problem there is a solution. You need to work with an experienced Loan Officer who understands how the credit scoring systems works. I hear from clients nearly everyday crying their credit scores are lower now. Some of these people were told by a Loan Officer they had to pay off all collections in order to get a home loan. That is NOT true, in some cases paying off collections can actually lower your score. If there are collections that need to be paid, it has to be done in a strategic manner as to not hurt your credit but enhance it. My company goes down to 620 in house, and there are sources for credit scores lower than that, but it will be like pulling your molars out with a pair of pliers. I always encourage all future borrowers to take the 30, 60, or 90 days upfront and work out your credit issues. The rates for a 3.5% down FHA are the low low 3's. It's a great time to buy, don't get caught sitting on the sidelines.

Best of Luck!
1 vote Thank Flag Link Mon Apr 8, 2013
If your credit score is lower it can effect the likelihood of a mortgage. FHA can do as low as 580, but you will need to contact a local lender as they often have additional requirements too.
0 votes Thank Flag Link Thu Mar 20, 2014
Hello Seanf,

You can find lenders who will work with you with less than perfect credit. BUT you may not get the best terms and rates.

In addition the market is very competitive these days. Sellers and their agents are looking at the credit scores too, so to increase your chances of getting good terms and rates and getting an offer accepted you may want to work on improving your scores first.

Your goal should not just be to get in a home, it should be to KEEP the home. If you get into a loan with a high interest rate and questionable terms you may end up not being able to keep the home.

I wish you the very best!

Kawain Payne Realtor
Prudential California Realty
0 votes Thank Flag Link Tue Jul 30, 2013
Many lenders (myself included) can do loans with a FICO as low as 620! It may be time to give your lender a call!
0 votes Thank Flag Link Sat May 4, 2013
It's very possible to get a home loan. It really depends HOW less than perfect your score is. The best first step is to speak to an experienced loan officer and go though your credit in detail with them. There are often many quick changes that can be done to quickly bump up your score. I would be happy to assist.
0 votes Thank Flag Link Mon Apr 8, 2013
What is the credit score? Less-than-perfect doesn't help too much....
0 votes Thank Flag Link Mon Apr 8, 2013
Hi Seanf,
How less than perfect is the score? I am able to offering financing to borrower's down to a 620 credit score through either FHA, VA (if you are eligible) and Fannie Mae. I would be happy to speak with you and go over your credit with you to determine what you can do to make impactful improvements to your score if necessary. I can be reached at 866.901.3570 and would be happy to assist you in anyway that I can.
Julie A. Horvath
Northpointe Bank
Area Manager
555 Metro Place North, Suite 320
Dublin, OH 43017
NMLS ID: 563029
866.901.3570 phone
0 votes Thank Flag Link Mon Apr 8, 2013
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