Financing in 62249>Question Details

Kasey Kemper, Home Buyer in Highland, IL

Mortgage Loan with 580-600 FICO

Asked by Kasey Kemper, Highland, IL Thu Feb 28, 2013

I'm looking for someone that could finance a mortgage (possibly through FHA) with a score in the 580-600 range. I've probably called 20 banks just to ask what their minimum is. The best I've got it 640 . I'm a first time home buyer, I have one derogatory mark on my credit ($61 medical bill), but what's killed me are the number of hard inquiries I have on my report. When I bought my first car, the dealership basically shot gunned me through different banks, after that, my score went to what it is is now. I'd also be looking in an area that is covered by the USDA or Rural Development loans. (I can't find a bank to finance me on this type of loan either.) I can get a loan with my personal bank with 20% down, I'm just looking for something more plausible, like 3.5 or even 10%. Any help is appreciated.


0 votes Share Flag Financing in 62249

Help the community by answering this question:


FHA requires a 580 mid for 96.5LTV. I work with a lot of people who have less than perfect credit. I tell all my clients that need a pre approval to visit The Lenders Network, I have had clients with scores under a 600 get approved. If anyone can get you a loan they can.

Good luck to you!
6 votes Thank Flag Link Sat Sep 28, 2013
You can get an FHA loan with a credit score in the 580-600 range with just 3.5% down. Have you tried The Lenders Network? They referred us to a lender that was able to approve our loan, even when we were declined by multiple banks. I would highly recommend them. Good luck!
1 vote Thank Flag Link Wed Jun 17, 2015
640 is the bottom score (again with few exceptions) that lenders will permit. Below a 640, then you’re in a world of hurt. Even at 640, people consider you a higher risk that other folks and are going to penalize you or your borrower with a more expensive loan. 720 is when you really start to get in the “as a lender we love you” credit score. 740 is even better. Watch your credit scores carefully. You have three credit scores and the lender will take your middle score.
1 vote Thank Flag Link Mon Dec 30, 2013
Joel Lobb
Senior Loan Officer


American Mortgage Solutions, Inc.

800 Stone Creek Pkwy, Ste 7,

Louisville, KY 40223

phone: (502) 905-3708

Fax: (502) 327-9119

Company ID #1364 | MB73346
Flag Fri Jan 24, 2014
We offer standard FHA & VA financing down to a 580 credit score without investor overlays, and close the average file well within 30 days. All processing and underwriting is done in office, communication is impeccable. Feel free to check out my Zillow profile below, and let me know if I can be of assistance:
Matt Schwartz
NMLS# 151017
0 votes Thank Flag Link Wed Aug 12, 2015
Credit scores in that range should work! The lowest credit scores lenders like myself are able to do, is a score of 580. Since your scores are above 580, then you should have a chance when it comes to credit. Also there are other financial factors that would need to be analyzed include your income, expenses, assets, liabilities, debt, employment, down payment, as well as credit scores. If all of these factors are in place then you should be good to go. The best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!

Brian Nguyen
Sr. Mortgage Banker
NMLS # 659743
Phone: 949.667.2887
0 votes Thank Flag Link Wed Mar 12, 2014
more and more the banks are allowing lower credit scores.

Riccardo Wardlow
Quality Mortgage Lending


*We do Conventional loans down to a 620 score
*We do FHA loans down to a 580 score
*We do USDA loans down to a 620 score (no money down)
*We do $100 down payment FHA program
*Unlimited Loan To Value refinances on Fannie/Freddie refinances (only on loans originated before May 31st 2009
*We do VA loans down to a 620 score
*We give free counseling on what needs to be done to improve your credit score.
*We do 203k loans down to a 620 score
*We do reverse mortgages
*We do JUMBO loans to 12 million
*We do Itin loans
0 votes Thank Flag Link Wed Jul 31, 2013
"FHA needs a 640 average. That is not negotiable. There are guys that can loan below that, but you are going to get hammered on the interest and insurance."
Again with this untrue nonsense. The "insurance" is no different for someone with a 580 credit score than it is for someone with an 800 credit score.

Also, NO ONE uses an "average" credit score. To say FHA needs a 640 average is wrong on 2 levels.

Please stop making up FHA regulations. It doesn't help anyone!
0 votes Thank Flag Link Wed Mar 20, 2013
You are right on the insurance part but conveniently left out the interest part. The costs involved are different based on the credit of the borrower. If I am wrong I would like to see someone offer a 580 and a 800 borrower the same rate and points. It is possible to get a 97.5% LTV with a 580, but it is going to cost the buyer more because there are very few that will write it up. That is not something I would encourage anybody to do. In theory a buyer can get a loan with a 530 and 10% down. Someone with that score probably is going to get into trouble down the road and also should not go forward. I would rather have a client get to a comfortable position financially than stretch so I can make a few bucks.
Flag Wed Mar 20, 2013

FHA needs a 640 average. That is not negotiable. There are guys that can loan below that, but you are going to get hammered on the interest and insurance. If you talk with a good mortgage broker they can give you the pointers you need to get your score up (instead of just saying no). I have a few if you would like to try another ear. It may take a few weeks or a few months to get your score up. If you have an idea how long it will take, it can make the process much smoother.

Geoff Ommen
Broker Baird & Warner
0 votes Thank Flag Link Wed Mar 20, 2013
We work with a lender that starts at 580. Give us a call.

Sean Cochran
630-470-6830 office
630-330-2229 cell
0 votes Thank Flag Link Thu Feb 28, 2013
Try Deb Higgins at Puliski Bank - she is a mortgage broker. I know she does process usda loans- you know the home has to be in their service area right? Also if you are looking in Madison co. perhaps you will (and the house will) qualify for Madison county grant. Under 600 is proable not going to cut the Fha criteria - but I'm not a lender. Deb can - or any lender can tell you what to do to rapidly get the score up. - If you are pulling your own credit through some internet yada yada I think that could hurt you.
Get yourself preapproved so that you can make a strong educated offer.
Good luck and happy house hunting. (I could help you with that!)
Hope this helps.
Marge Haworth
Landmark Realty
0 votes Thank Flag Link Thu Feb 28, 2013
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