Home Buying in Houston>Question Details

Barbara Murr…, Home Buyer in Houston, TX

Are there any Home Lenders that will loan to anyone with a credit score of 566-?

Asked by Barbara Murray, Houston, TX Wed Sep 18, 2013

Help the community by answering this question:


Ms, Murray,

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 We address incorrect and/or outdated information; and guide you through improving your credit by actually using it.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
Office: 281-201-1919
Direct: 832-377-1721
Email: Brandon.Jenkins@NewHomePrograms.com

16300 Kuykendahl
Suite 340
Houston, TX 77068
0 votes Thank Flag Link Wed Sep 18, 2013
If there are you should run from them. Credit scores are nothing more than odds, they represent the probability that a specific borrower will repay the debt as agreed. Why bet against yourself? Fix the problems first, then make the next move. Increasing your debt load only makes the problem worse.

Jim Simms
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.
Web Reference: http://jamessimms.com/
1 vote Thank Flag Link Wed Sep 18, 2013
Barbara ...

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.

Al Geffon
Trend Setter Realty
(713) 213-6350
Web Reference: http://www.har.com/algeffon
1 vote Thank Flag Link Wed Sep 18, 2013
Barbara ...
Please see my additional comment above with reference to conferring with a lender. You hadn't mentioned the identity theft issue in your original post, and we get dozens of inquiries from individuals with poor credit scores due to their own irresponsibility. There are folks here who respond that they can help pretty much anyone, which at best is providing false hope. Had I known your circumstances, my reply would have been different. Still, your first step is to sit down with a mortgage broker (again, not a banker) to determine where you are, where you need to be, and how to get there. I wish you the best.
Flag Fri Sep 20, 2013
Well, Al:
You dont mix words do, you? It appears that your pre-judgement represents the negative attitude that I am going to deal with before many businesses get all the facts or fail to read the details. I have paid off what I owe, had steady employment history and have more than a "shoestring" budget to work with. Your reply is so noted, but not all of your advise was lost.
Flag Thu Sep 19, 2013
Thank you. I am trying to clear discrepancies from ID theft. But I was hoping not to continually be penalized for someone elses bad behavior.
Flag Wed Sep 18, 2013
A credit score of 566 is pretty low. I would recommend to get it up about 20 points. I have been able to give out loans with credit scores as low as 580. So if you can get it up to at least 580 then you will have a much better chance at obtaining a loan. The most effective way to fixing your credit is paying off your debt and revolving credit balance. Well I hope this helps! If you have any further questions or if you need a loan, feel free to contact me. Also, if you found this helpful please leave me a recommendation if you can! Good Luck! Brian Nguyen Sr. Mortgage Banker NMLS # 659743 Phone: 949.667.2887 brian.nguyen@nafinc.com
0 votes Thank Flag Link Wed Feb 19, 2014
Barbara ...

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.
0 votes Thank Flag Link Wed Sep 18, 2013

Tom Burris
Mortgage Banker
(214) 763-4629 cell/text/nights/weekends(Really!!)
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
0 votes Thank Flag Link Wed Sep 18, 2013
Thank you Tom for the advise and contact information
Flag Thu Sep 19, 2013
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