Financing in Choctaw>Question Details

74greeneyez, Other/Just Looking in Choctaw, OK

if you have a credit score of 565 how hard will it be to buy a house

Asked by 74greeneyez, Choctaw, OK Tue Oct 6, 2009

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I've been to Oklahoma. Nice area. No trees though...oh sorry...ADD. The first thing is to find out if the 565 is the middle of 3 scores. If you get into the 580 range, you may be able to get financing from more companies. You'll have to find a broker who's signed up with a lender that does scores below 580, like First Guarantee Bank. They take scores down to 530 but you have to have a certain amount of credit lines (3) that are actively open and not have any large collections open (over $2500). It's not hard to qualify, it just takes a long time because these wholesale lenders figure you ain't got nowhere else to go and they take their time underwriting your loan. So, find a broker that is signed up with FGB or any other bank that takes scores that low. OR you can go to equifax.com and check out their new system that helps you figure out how to pay off your debts to help raise your score. I think it's $15 a month. you can also go to the credit union and open a secured credit card that reports to the bureau. Get 2 lines and season for about 6 months. That should also pull your scores up. Don't pay off any collections over 1 year old until the Loan officer has already pulled your credit for financing. Doing so will re-activate an old account giving you a new collection with a zero balance. bad, bad, bad.
0 votes Thank Flag Link Wed Oct 7, 2009
Wow, Bill- it was yrs. go that you answered this, BUT.....it helped me, TODAY, in 2013!! Thanks!!!! :) Becky
Flag Sat Feb 9, 2013
To be upfront and honest, it's not going to be easy. You will most likely need to find a lender that still allows manual underwriting and have high compensating factors like low debt to income ratios and high assets.
0 votes Thank Flag Link Tue Oct 6, 2009
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