Financing in Louisville>Question Details

Counsil61, Home Buyer in Louisville, KY

i have a credit score of 580 is there anyone of getting a mortgage

Asked by Counsil61, Louisville, KY Sun May 9, 2010

Help the community by answering this question:


Joel Lobb’s answer
Current guidelines for mortgage loans via, KHC, USDA, Fannie Mae and FHA and VA will require a 620 to 640 score. They will take your mid score.

I can pull your credit for free if you wish.

Joel Lobb (NMLS#57916)
Senior Loan Officer
502-905-3708 cell
502-813-2795 fax

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*
0 votes Thank Flag Link Tue Apr 10, 2012
There are many things you can do to improve your credit score right away. Begin making early payments on your credit cards that are over the minimum payment. Take out a secured loan, even a small one at your bank and then use it and pay it off right away. Consult with a credit counselor for more advice. You will be in a much better position to get a mortgage the higher your credit score is! Good Luck!
0 votes Thank Flag Link Tue Jul 6, 2010
You must have a 620 credit score nowdays to do KHC loans.
0 votes Thank Flag Link Tue Jul 6, 2010
I am not a loan officer so therefore can't answer this one. The clients I have assisted have had 580 and lower and some of it was due to poor reporting on the 3 credit bureau. Start there and you can do that yourself for free with your annual credit report. It's hard to unravel a credit problem once it has been reported wrong sometimes it keeps popping up on another reporting agency. Once you find out why the score is low then work on that area.
0 votes Thank Flag Link Sat Jun 26, 2010
If the problem is delinquent credit issues get back on track with a strong budget. That is the quickest route to legally bump scores unless there are mistakes or lack of open credit lines. Unless you have three or four open trade lines that are paid as agreed for about a year the score will probably stay low or go even lower.

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. Your question does not contain enough information for anyone to offer specific guidance that will put you on the fast track. I am rather booked up until Thursday morning, would be glad to look at your details after that if you still need help.
0 votes Thank Flag Link Mon May 10, 2010
All the answers have good advice; the bottom line is you need to first speak to a lender. Find one that you're comfortable with (your Realtor can give you a few names) and talk to them about how to bring your score up as you look at what is currently available and as you're shopping for your home. There are so many things that are considered, but there are also many programs to help buyer. Get the facts now and start the process.
0 votes Thank Flag Link Mon May 10, 2010
Not knowing any of your finances/assets--visit with any qualified loan officer(s) first, see exactly what your budget can handle and check your credit score--their scoring is different--Currently FHA loans do require a minimum score of 620 and 3.5% down, however there may be some lenders willing to work with a lesser score, but the interest rate may be higher.
0 votes Thank Flag Link Sun May 9, 2010
Sure there is a way of getting a loan provided you have a bigger down payment or a hard money lender.
Talk to a hard money lender.

Also focus on improving your credit score.

There are several Credit Improvement Companies.

Good luck.
Web Reference:
0 votes Thank Flag Link Sun May 9, 2010
Talk to a reputable lender. They will be able to offer guidance on ways to bump that up a tad. Best of luck in your new home purchase!
0 votes Thank Flag Link Sun May 9, 2010
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