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Faye01us, Home Buyer in Alta, IA

Is it possible to get a home loan with a credit score of 603 and a co-signer?

Asked by Faye01us, Alta, IA Sun Mar 14, 2010

My fiance and I are trying to find a home. But we need a loan first. He has a job, but I don't. We make about $2,000 a month. My credit score is 603, but his is lower. Is it possible to get a home loan in our situation if we have a co-signer to?

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Most lenders are requiring a 620 credit score but we work with our clients to help them get those needed points.
Sometimes getting 40 plus points in 6 weeks. If you would like to chat about your situation please give me a call.

Steve Smither
Senior Loan Originator
Ardain Mortgage Corp
847-963-1000 Office
847-963-1010 Fax
847-942-5151 Cell
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1 vote Thank Flag Link Sun Mar 14, 2010
We actually have 2 Lenders that will go down to 580, and we closed a 203k rehab loan with one of them earlier this year. You would have to have cancelled checks or bank statements to prove rent history for the last 12 months. Also, even though your scores may be 580 or more, we would review your credit for the last 12 months, and require reasonable explanations for the issues on the credit report.
You would also have to meet income and asset guidelines.
Since you are not currently employed, any bills on your credit would be counted against your fiance, and affect the loan's debt ratio, so you need a good analysis of your entire situation to see if you add value, or detract from the loan application.
A co-signor could contribute additional income and assets, but their bills would be counted in your debt ratio, and the lower applicant's credit score is used to underwrite the loan.
So, what am I saying? It is not impossible, but you may want to speak directly with an experienced Loan Officer, and obtain guidelines to work on and meet, to give you a better loan profile over time, and ensure that you not only obtain a loan, but that you obtain a GOOD loan.
I wish you the very best.
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0 votes Thank Flag Link Sun Mar 14, 2010
The industry standard is 620, and even if you have a co-signer they always qualify off the lowest score. Basically you need to improve your score, or you must remain off the loan. Try becoming an "Authorized User" on a credit card in good standing. That may bump your scores enough to get the 620 needed. But be aware, some lenders are hip to the game and they may require that Authorized user credit card be removed from your credit report so they can see what your true score really is. Good luck!

FHA guidelines say 580, but I'd like to see a 580 actually close! Probably not happening...
0 votes Thank Flag Link Sun Mar 14, 2010
Yes, it is possible. If you can go FHA, they can go as low as 580, but they have additional requirements. Contact me and I can get you in touch with my Preffered Lender
0 votes Thank Flag Link Sun Mar 14, 2010
The majority of lenders cannot do loans under 620, however Bank of America and US bank are the only two Banks I know of that can do loans under 620 as long as you have other "tangible benfits." I do not have a contact for either of these two banks, however they should be able to help you unless they changed their programs in the last few weeks? They will probably do a loan going through F.H.A. channels and F.H.A. allows a non-occupying co-signer. If you call them and they are no longer able to do loans under 620 email me and I can give you the name and number of a credit repair lady, she is good and quick..

Thanks and best of luck.
0 votes Thank Flag Link Sun Mar 14, 2010
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