Financing in Midland>Question Details

Nursehottie, Home Buyer in Midland, TX

i have a 580 credit score can i still get a loan

Asked by Nursehottie, Midland, TX Mon Jul 4, 2011

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There are a few local lenders that will work with lower credits scores. A credit score is not the only thing that a lender looks at to determine you qualification. I would be glad to share the names of the lenders that I would recommend.
0 votes Thank Flag Link Thu Oct 4, 2012
With a 580 Credit Score it's very hard to get a loan. I can help you repair your Credit becuase there definitly negative accounts that are affecting your Credit Scores. The better your scores the better interest rate you will get and more doors will be open for you.
0 votes Thank Flag Link Thu Oct 4, 2012
It's possible but unlikely. You need to find a lender you can trust who will work with you and ensure your credit is improving. There are many things you can do. I think you can find a recent post if you look through my answers where I gave steps you can take as far as opening up secured credit cards or being added to an account as an authorized user. Read over those and find a lender who can work with you to get you there.

Best of luck to you.

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
listings@dongroff.com
0 votes Thank Flag Link Tue Jul 5, 2011
FHA mortgages require a 500 credit score, and most FHA lenders minimum score requirements tend to be 600, 620, or 640 - with FHA anything less than a 580 score requires a 10% down payment, otherwise just 3.5% down is required.

VA mortgages have no score requirement, but VA lenders score requirements are similar to FHA's. VA is 100% financing for Veteran's.

USDA Rural Development mortgages have no score requirement - however if you go through a lender most will have 620 or 640 minimum scores, but if you go Direct to USDA they do not have any minimum score requirements, but it takes a little bit longer - Midland & Odessa are not eligible areas but outside of city limits are, including Gardendale, Stanton & Monahan. http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do to check the eligible areas and also if your income is not too high/within eligibility limits as well.

Fannie Mae & Freddie Mac mortgage programs require a 620 score, however with less than 20% down you will likely need at least 660-680 scores.

Credit score isn't the only item considered though, what is on your credit report is equally as important. If there are late payments or delinquent accounts in the last 12 months when you apply then that can curtail your chances of qualifying. If it's free of those items for the past 12 months then your credit is likely good enough as it is. If there is good reason for negatives, such as an accident at work that prevents you from making money, a medical situation keeping you from working, or a death of a family member who was a wage-earner (among other situations) then that is taken into consideration.
0 votes Thank Flag Link Tue Jul 5, 2011
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