Right now, the target mid score for loan approval is 640. Of course there are lenders offering mortgages at lower score, but honestly I would advise against it. However, I do not want to simply give you an answer and turn you away. Like Al and others have noted, this will take concerted effort on you part, but I have a solution for you. It is not credit repair and I offer it free of charge.
For my clients, who are in a similar situation to yours, I have been educating them on how to improve their own credit scores. We address incorrect and/or outdated information; and guide you through improving your credit by actually using it. There are 5 factors to your credit reports and their corresponding scores. Each Credit Bureau uses a different model to determine your scores, but these five factors are the keys to what your score actually is. You actually have a Beacon Score, a FICO Score, and a Fair Issac Score.
The Credit Bureaus keep ridiculous amounts of incorrect information in each and every person's credit reports. It is not in their interest to remove erroneous information, unless you dispute it. They are actually paid by your creditors to place information on you file. The Credit Bureaus are not non-profits, nor are they government entities. They are for profit businesses. They profit from the information they gather about you.
What I can offer you is assistance in working your way from your 566 to a 640. Again, I will help you and educate you for FREE. I am a real estate agent, just like the others who have answered your question. Just like everybody else here, I want to help you. The difference is I have the knowledge, tools, and team in place to help you. Let me say this again, we do not perform credit repair. This is about education and giving you the tools to change your situation. I will walk you all the way through the process and work with you all the way to closing on your home. Below is link to our website, with a small part of the information I discuss with my clients. Review it and call me. I am ready and willing to help you achieve your dreams of home ownership. Also, I will help you with down payment assistance programs, The Texas Mortgage Certificate Credit program, and the FHA mortgage program.
Thank you for your time and may God Bless you abundantly!
Brandon R. Jenkins
Houston, TX 77068
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
In a word, no. Yours may actually be lower, since lenders use the middle number of the three reporting services to determine an applicant's FICO score.
You will no doubt receive answers here from individuals who claim they can help you ... but it all begins with improving your credit profile. There are programs that will accept applicants with a score as low as 580, but you could likely not qualify even then, since you'd have to demonstrate responsible behavior over the past year, with no late payments or charge-offs,and a steady employment history, among other factors. The interest rate will be higher, and you'd probably be required to come up with an additional down payment.
Be leery of "credit repair" services. Many make deceptive claims about improving your score in a short period of time, and they charge a fee to do what you can accomplish on your own. You should sit down with a responsible mortgage lender (avoid banks at all costs), who will assess your situation and provide advice that will bring your score to an acceptable level ... generally around 640 for an FHA-insured loan with 3.5% down.
The last thing you want to do is to purchase a home on a shoestring budget. Continue to rent, work hard on improving your credit, and put away enough cash to cover your down payment and closing costs (I recommend 6% to 8% for FHA loans). You'll be there before you know it. I wish you well.
Trend Setter Realty
Your circumstances are precisely why you should be speaking with a lender ... not a bank's loan officer, but a dedicated mortgage professional. They've certainly encountered similar situations, and can provide valuable information as to how to overcome your situation. I'm sorry that you're going through this painful ordeal. Hopefully it will end shortly. Best of luck.
(214) 763-4629 cell/text/nights/weekends(Really!!)
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