Financing in 33709>Question Details

Merrill, Home Buyer in Saint Petersburg, FL

Wanting to buy a house with VA or FHA loan, but credit score is only 560. Is this possible?

Asked by Merrill, Saint Petersburg, FL Fri Nov 14, 2008

I am a veteran, and with an annual income of $50,000 and credit score of only 560, is it possible to get a home loan in the current financial crisis? I recently switched jobs (moved from Virginia to Florida due to a job offer in the same industry) in September. I spent 9 years in the Navy, with no gaps in employment.

Any suggestions as far as lenders in the area who specialize in VA loans with bad credit?

0 votes Share Flag Financing in 33709

Help the community by answering this question:

Answers

7
Yes you get a home loan now. I tell all my clients with lower scores to visit The Lenders Network, I have had several of my clients get approved and close with scores under a 580. So if anyone can get you a loan they can..

Good luck
4 votes Thank Flag Link Sun Jun 30, 2013
Merril,

It's good to hear that you're taking advantage of some of those great real estate deals out there.

To answer your question, yes it is possible. There are a few lenders out there who will do FHA and VA financing in the score range you're looking at. Government lending is fantastic because it allows you the ability to qualify for a loan even with blemished credit.

As far as lending requirements go, we have NO MINIMUM score requirement on government lending (except for a 203K, we have a minimum score) CURRENTLY (this may not be accurate down the road).

Long story short, if the deal makes sense and it can be documented, we will do the deal. We have some of the best performing loans amongst our competitors which is why we can continue lending without a minimum fico restriction -- the deals need to make sense.

We're a national lender and we're licensed to lend in all 50 states.

Rob Weber
Mortgage Consultant
Wells Fargo Home Mortgage
312.274.4136
Web Reference: http://robweber.com
1 vote Thank Flag Link Fri Nov 14, 2008
Yes
I have a good mortgage person that specializes in VA loans. Please contact me
0 votes Thank Flag Link Sat Jun 27, 2015
HOW can we contact you do you have a website?
Flag Thu Jul 16, 2015
Please contact me
I will give you a name of a company that can help
0 votes Thank Flag Link Sat May 23, 2015
We require 620 credit scores so we cannot help directly. I do know there are lenders that will do loans down to a 580 score. But the terms and down payment may be higher. It may be worth it for you to take the time to raise your score to 620 to get the best terms. I think you need to find an experienced lender, well reviewed, who earns your trust, and go through a pre-approval process to see exactly what you can do now with your current score, and then ask what they could do if your score was 620, and you can decide if you think its worth waiting. But a lot of times there are things on your credit report that got your score so low in the first place, like collections, judgments, liens, etc; that may have to be resolved with any lender, even one who will accept a score as low as yours. So waiting may end up being your best choice for several reasons. Please don't be in a rush to buy home, it's the worst mistake you can make. If you have a very low credit score you may have some serious credit issues, and buying a home may simply exacerbate a currently bad credit scenario. Good luck.
0 votes Thank Flag Link Sat Apr 11, 2015
Hello Merrill-

My name is Luke Allison and I am a retail Loan Officer with Flagstar Bank. My bank can consider your file for approval and will not deny it based on credit score. We can underwrite files down to a 550 score on our retail side. As far as lenders in the market go, we are one of the few taking Government files with scores that low.

Credit score can vary for a variety of reasons so the underwriter will consider your file based on the information on the credit report and the documentation that is sent in along with the loan package. For example, medical collections are routinely ignored from consideration while credit lates would be looked at with more scrutiny.

Please feel free to call me at your nearest convenience. Although I am based in North Carolina, I can close loans in all 50 states. I routinely do loans in Florida since I am originally from there.

Please call me
Luke Allison
Flagstar Bank
828-777-8828
Luke.Allison@flagstar.com
0 votes Thank Flag Link Fri Nov 14, 2008
Hi Merrill,

Also a veteran here, USMC - 12 years

I spoke with our lender and he thinks that you would have difficulty with a score under 600. However, finding a home now that will consider a lease purchase will afford you the time to work on building your credit score while you negotiate a sales price at today's market value.

Jim Janolek
Web Reference: http://www.jimjanolek.com
0 votes Thank Flag Link Fri Nov 14, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer