Credit score is the baseline, but also job history, source of income and debt to income matter too. In these stringent underwriting times, you need more than a 620 to get a loan! if you just started a job, have a big car payment, revolve credit cards that can hurt your ability to get a loan. The first hurdle is credit score, work on that. But having consistent earnings and a low debt to income ratio seals the deal!
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Best of Luck!
I know of only one lender that advertises down to 550 scores. However, it is to your benefit to work with either a credit counselor or a good lender that offers credit repair services to qualify with more lenders and get better rates and terms.
Good luck! Jim
It is unlikely you could be approved for mortgage financing with that credit score. Beware of any mortgage professionals promising you an approval with such a score.
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 http://www.consumer-action.org is an excellent resource for objective advice on all things credit related. Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams.
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.
Hope that helps!
Trevor Curran NMLS#40140