Financing in Louisville>Question Details

The Family, Home Buyer in Louisville, KY

My FICO scores are 670, 600 & 575. Can I get a mortgage loan?

Asked by The Family, Louisville, KY Mon Feb 15, 2010

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Answers

22
Yes FHA loans require a 580 credit score, conventional loans with 3% down with a 620 credit score with some lenders. Check out our site if you would like to be referred to a lender.
1 vote Thank Flag Link Wed Oct 23, 2013
You must have a 620 credit score now days with most investors .
1 vote Thank Flag Link Tue Jul 6, 2010
Check your credit card balances; this is the most frequent problem I see on credit reports other than delinquent accounts. If the balance is at or near the limit on the account it will crush your credit score. Pay them down as much as possible, especially the ones with very low limits. They hit your scores as much as the big ones so your payments will have more impact on the little ones.

Very often people in my industry will tell you to dispute everything negative on your report. Knowingly disputing accurate information in an attempt to get a mortgage is loan fraud, serious stuff. Besides, it is not a good way to start out in your new home.

The people in the credit repair business will quote federal laws protecting the consumer. Those laws are there to protect you, not hurt you. Here is what the Treasury has to say on the subject: If you see a credit repair offer, here’s how to tell if the company behind it is up to no good: The company advises you to dispute all the information in your credit report, regardless of its accuracy or timeliness. If you follow illegal advice and commit fraud, you may find yourself in legal hot water. It’s a federal crime to lie on a loan or credit application,

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm

Shoot me an email if you have any questions or would like for me to look at your credit report.
Web Reference: http://www.jamessimms.com/
1 vote Thank Flag Link Tue Feb 16, 2010
Hi, I am a realtor in the Louisville area and the fact is, it is not necessary to pay a credit repair company to help you fix your credit score. I work with lenders who guide clients in addressing problems with credit and aid them in getting to the point where they can purchase a home. In doing so they earn the respect and trust of the buyer. It can be as simple as "No you don't qualify" but that really doesn't help anyone. Know what issues are causing the problem, address them and prepare yourself to become a homeowner. Feel free to give me a call or email.
1 vote Thank Flag Link Mon Feb 15, 2010
Hi Family,

With less-than-perfect credit you can often obtain a mortgage. However, mortgage products do not even get exciting until your score is 749 or better. Having less-than-perfect credit you will pay a higher interest rate on the mortgage, higher insurance costs, higher interest rates when financing cars, higher utility rates. FHA mortgage products are available to home buyers with a low credit score of 620. Keep in mind this is not a good credit score.

Why not set yourself up for success long term? Begin with the basics, clean up your credit rating through credit repair and credit education process, once you have a better credit rating you can then select a mortgage product that is appropriate for you, then begin looking for a home for your family.

Good luck!

Hannah Fliegel
The Credit Repair Expert
415-999-9348
1 vote Thank Flag Link Mon Feb 15, 2010
Inquire about an FHA loan with your loan officer.
0 votes Thank Flag Link Sun Dec 15, 2013
If you get an automated approval through DU (Desktop Underwriting) that is typically used for the initial pre-approval then the following apply:

Medical Collections and charge offs on the credit report are not required to be paid.

Other collections that are not medical on the credit report , and over 24 months ago, will not be required to be paid.

If your automated DU VA loan pre-approval comes back as a refer/eligible on the underwriting findings, then file has to be underwritten as a manual underwrite and the following apply:

Medical Collections and charge offs on the credit report are not required to be paid off.

Other non-medical collections must be paid prior to closing no matter if it happen over 24 months ago on the credit report
0 votes Thank Flag Link Sun Dec 15, 2013
I'm able to approve buyers with these scores. Please contact me at 502-645-0102. Eddie Sexton
0 votes Thank Flag Link Tue Nov 26, 2013
Randy Roberts stop spamming Trulia. The Lendersnetwork is a scam buyers beware. They hire people to creat fake profiles and spam Truila.

Look at Randy Roberts profile he has 100s of spam comments left on blogs. This company uses companies overseas to create fake profiles to leave comments all over the internet to promote their company. There a mortgage lead company that wants to sale your information to mortgage lenders and brokers.
0 votes Thank Flag Link Thu Oct 31, 2013
This is probably the most common hurdle. Lenders will have a qualifying credit score depending on the loan type, your background and other details. That baseline also applies to anyone else on the mortgage. So you might have an 800 credit score, but if your spouse is lagging at a 530, you’re going to struggle to obtain financing.

Even if you’re going it alone, lenders in community property states may still factor in your spouse’s credit. The average credit score for conventional purchase loans was 762 in September, according to mortgage software firm Ellie Mae. For FHA loans it was 701. Military borrowers interested in using their VA loan benefits will generally need at least a 620 score.
0 votes Thank Flag Link Tue Oct 22, 2013
This is probably the most common hurdle. Lenders will have a qualifying credit score depending on the loan type, your background and other details. That baseline also applies to anyone else on the mortgage. So you might have an 800 credit score, but if your spouse is lagging at a 530, you’re going to struggle to obtain financing.

Even if you’re going it alone, lenders in community property states may still factor in your spouse’s credit. The average credit score for conventional purchase loans was 762 in September, according to mortgage software firm Ellie Mae. For FHA loans it was 701. Military borrowers interested in using their VA loan benefits will generally need at least a 620 score.
0 votes Thank Flag Link Tue Oct 22, 2013
You will need at least a 640 credit score on FHA, USDA, and a 620 on VA loans. As far AS Fannie Mae loans, they really vary. I would suggest you do the following things below to raise your score and try to have no lates in the last 12 months.


• Pay off all past due balances and charge-offs that have occurred within the past two years. Charges older then two years have little effect on your current credit score.
• Don't close existing credit card accounts, even if you do not use them. A portion of your credit score is based on your credit history and leaving them open gives you the benefit of the history they represent.
• While it might not be possible to pay off all credit cards, it might be possible to adjust the debt on some of them so you keep your debt below 30% of the available credit on each card. If not, see if the credit provider will increase the amount of credit so your balance is below 30% of the limit.
• Obtain your credit report at least a month in advance of applying for a loan. If you have items showing up on your credit report that you know have been paid, request that these items be removed. Credit bureaus normally work to fix the report within 30 days if a request is made.
• If a married couple applies for a loan and one spouse has better credit than the other, that individual can be designated as the sole borrower on the loan, but ownership of the home can still be put into both names. Doing this could decrease the interest rate, but it could also change the amount you will be approved to borrow.
Joel Lobb (NMLS#57916)
Senior Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*
http://mylouisvillekentuckymortgage.com
0 votes Thank Flag Link Tue Feb 12, 2013
As you've read, a 620 credit score is the absolute minimum these days and above 640 is preferred. Mortgage lenders use the middle of your 3 scores so, in your case, that would be 600. Although you would not qualify for a mortgage loan at this time, your immediate goal should be to increase your credit scores through credit repair. There are a couple of companies that I've referred clients to recently that seem to achieve positive results. Give me a call any time and I'll be happy to provide that contact info to you and discuss real estate financing options in general.
0 votes Thank Flag Link Mon Feb 11, 2013
Most lenders now days want a 640 score
0 votes Thank Flag Link Fri Feb 1, 2013
Yes, talk with NACA. They have the least expensive loan program and they do NOT look at FICO scores. Their website is listed below. Good Luck!
0 votes Thank Flag Link Mon Mar 14, 2011
One of my trusted loan officers here in Louisville (with a MAJOR national lender) has quoted that she has an FHA program that does 600 mid scores and up. Obviously there is other criteria other than your score, but it is possible to get approved without needing to raise your score.
0 votes Thank Flag Link Mon Jul 19, 2010
There are many things you can do to improve your credit score. First of all find out if there are any derogatories that you can clear up. Then make sure you pay all of your credit cards and other payments early and make the payment more than the minimum amount. Take out a small secured loan at your bank and then use it and pay it off in full right away. Speak to a credit counselor for more information. The interest rate you wind up with long term will be greatly affected by your score so do everything possible to improve it ....Good Luck!
Web Reference: http://www.soreal.biz
0 votes Thank Flag Link Tue Jul 6, 2010
You are very close! 1.) Check your credit and see what is bringing your scores down to 600 & 575. If it's credit cards, which seems to be the culprit for many these days, then work on getting your balances to around 1/3 of your credit limit. This will help your scores tremendously. I know this is easier said than done,especially since some credit card companies are lowering the credit limits thus keeping your debt:credit ration high.
2.) Remember each time your credit is "pulled" it lowers your scores. Therefore, no major purchases or credit card applications until you have closed on your new home.
Just take one day at a time; closing day for you will happen. Best of Luck!
Web Reference: http://MichelleDoscher.mobi
0 votes Thank Flag Link Mon Mar 1, 2010
Sorry, no.

Go to http://www.annualcreditreport.com (it totally free and set up by the government to get your credit report once a year).

Then go line by line on each issue and dispute it.

In about 60 days, things should clear up if they are wrong.

Good luck!

Fred
Web Reference: http://fredglick.com
0 votes Thank Flag Link Mon Feb 15, 2010
Hello Family,

You are so close, the norm is as stated below 620 but with a good credit repair specialist you could get there rather quickly. I work with one in the louisville area so if you would like his information just give me a call. There are many changes comming in the near future so you should really try to get this done as soon as possible. Hope this helps.

Thanks,
Roy
0 votes Thank Flag Link Mon Feb 15, 2010
Hi The Family:

I suggest you talk to a local lender about getting a loan. You are in the "ball park" for a loan with your credit scores. But, a lender will look at other factors, such as your debt to income ratio, pay stubs, tax returns, whether you have enough cash for a down payment, etc. So, you really need to talk to a lender. I would do it soon , as you must have a signed purchase agreement by April 30, 2009 to qualify for the first time home owner tax credit.
0 votes Thank Flag Link Mon Feb 15, 2010
Unfortanately your scores are lower than most mortgage programs call for. Your first step should be to contact a local and trusted mortgage broker, they can prequailify you at no cost and let you know if there are any programs you do quailify for. Most importantly they can tell you what you will need to do to clean up your score and get a mortgage in the future. The rule of thumb is the lower the credit score, the more money you will need for a deposit such as 10-20% down. You should stay away from internet lenders and meet with someone in your area. good luck on your search for a mortgage.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Mon Feb 15, 2010
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