Financing in 35150>Question Details

sbrnpierre, Home Buyer in Sylacauga, AL

My fico score with experian is 550 and my daughter lives with us now her score is 592. Can we apply for together?

Asked by sbrnpierre, Sylacauga, AL Sat Sep 29, 2012

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If your daughter makes enough to purchase the home on her own you may be in luck. I don't know of a lender who will include you on the loan with a 550 credit score.
0 votes Thank Flag Link Wed Jun 5, 2013
I recommend you to get your credit scores up before you apply for a home loan.A low credit score that will make it more difficult and more costlier to get money.Your mortgage expert will help you on what to do and how much time it will take to get qualifying for the loan.
0 votes Thank Flag Link Wed Jun 5, 2013
Good afternoon sbrnpierre,

We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.

It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.…

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes Thank Flag Link Mon May 13, 2013
There are many factors to qualifying for a home loan. I suggest going through a lender. It does not cost anything to ask questions right and who better that a professional company. This company can do 580 FHA with 3.5 down. You can send in an application online and have someone get back to you or you can call directly. They can tell you your options and even get you in touch with some great Realtors in your area. They are amazing tell them I sent you. Good luck on your home hunt.
0 votes Thank Flag Link Sun May 12, 2013
A credit score of 550 is too low for any mortgage loan right now. For an FHA mortgage, most lenders require a 640+ credit score for the last 2-3 years now. Prospect Mortgage is one of the few direct lenders to offer an FHA 580-639 FICO loan program. Credit profile is a major factor in a mortgage approval. Generally, there should be no late payments, new collections accounts/charge-offs/liens/judgments in the last 12 months. It is required that all open collection accounts must be paid in full if their cumulative balances exceed $1,000.

The 3.5% down payment can be from the borrowers own funds or it can be gifted from a family member. Getting Pre-Qualified is the only way for you to find out your options.

To get Pre-Qualified you purchase, you can submit your request online at

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
0 votes Thank Flag Link Mon Oct 1, 2012
Most lenders will require a 640 credit score. I know of a handful that will take a 620, or even 600 possibly. Your best bet is to get your scores higher. As you are both close, it is possible just a few things could jump you up to qualifying. I can give you the contact information for a couple of lenders that I know that could help you. Sometimes they can look at your credit report and see a few things that will get your scores up, but they also have excellent credit repair resources that they can put you in touch with. They can usually improve most scores in a few months.

Aaron Sims
Weichert, Realtors-Access Realty
0 votes Thank Flag Link Sun Sep 30, 2012
If you have good income then you can qualify together for fha, if you don't but have money to put as a down payment then you should consider hard money loan.
Hard money lenders are private lenders that can help you with lower fico score and lower income. As long as you can get them some equity, you will get qualify.

Good luck
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0 votes Thank Flag Link Sat Sep 29, 2012
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