Home Buying in Hicksville>Question Details

Greg, Home Buyer in Hicksville, NY

Can I buy a house with 560 credit score?

Asked by Greg, Hicksville, NY Sat Aug 13, 2011

I have a credit score of 560 but the income is good and can afford mortgage payments. I'm currently renting because of my score. Few of my friends bought a buy house with the same credit score but didn't tell me how. When I contact any lenders, they expect min 620 credit score. Is there anyway I can buy a house with 560 credit score?

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11
Have you been able to get pr-approved? It will take longer but you should be able to find someone who can provide you with help. In the meantime you need to work on raising your scores. There are companies that work with clients to help raise your scores. Use karma.com, safecreditcardsolutions.com 800-883-9597.Take your time better score better for you. I hope my answer was helpful.
0 votes Thank Flag Link Sat Mar 8, 2014
You asked this question in Aug 2011, are you still in the market to get mortgage for purchase or refinance? If yes please get in touch with me. My contact information is given below.

Thanks

Sanjeev Ahuja, NMLS #148731
Mortgage Broker
Home Funding LLC
110 Jericho Turnpike Ste 214
Floral Park, NY 11001
Direct Phone 917-517-2552
NYS Registered Mortgage Broker, Dept of Financial Services, Loans arranged through third parties (NMLS # 885573)
0 votes Thank Flag Link Sun Mar 2, 2014
Hi Gregg, I can sometimes work with this score with an FHA loan, but you would have to put 10% down and have some other positive factors to your application.

However, once I pull a copy of your credit report I have access to software which enable me to run unlimited scenarios for things we could do as well as how it would affect your score. In addition, I can use this software to project out in time so we can see what the effect will be in one month, or two, or more. Often I can get peoples score up significantly while we process their applications to either get them qualified, or take an already qualified applicant and get them a better rate at the settlement.

I am available to help you at your convenience if you wish.

I also offer credit score improvement programs for free while we work on your mortgage.

If you like my answer above, consider clicking on a “Thumbs Up” or “Best Answer”

Regards,

Robert L. Hanson
Gladewater National Bank
First Time Homebuyer Specialist

Direct: 240-752-7549 Cell: 301-651-7822
Email: robertlh66@verizon.net
NMLS# 695929

Rate quote or live chat with me at the link below:

http://www.loansfromrob.com/quote/
0 votes Thank Flag Link Wed Feb 26, 2014
how much house can a person afford is based off of what? my credit score is between 561-585, however income just doubled because of going from part time to full time (50,000) to 105, 000 per year as a registered nurse, with double that earnings potential when I graduate from grad school in Nov 2015. Please advise
Flag Sun Jun 14, 2015
Hi Greg,

With a credit score of 560 you will pay a higher interest rate. You can search around but it will probably be hard to find a lender that will work with you.

http://www.mybronxhomesearch.com
0 votes Thank Flag Link Wed Feb 26, 2014
Good afternoon Greg,

We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.

It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. 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 CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.
http://www.consumer-action.org/

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE. http://www.consumer.ftc.gov/articles/0058-credit-repair-how-…

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.

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
1010 Northern Blvd. Suite 234
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes Thank Flag Link Thu Apr 25, 2013
Hi Greg - in all honesty, I think the bigger question you need to ask yourself is why isn't your credit scorehigher?

Find out why, and work on improving it, before taking on the burden of a large loan.

One thing you didn't mention.....do you have a down payment?
And.........Do you have savings as a cushion, beyond a down payment?
If the answers are "no", you need to work on that, too.
When you're a home owner, there is no super to call in when things break. Without a cushion, what would you do if you needed a new furnace or roof?

Plan this out so you don't wind up on thin financial ice!

Best wishes.......with a plan for the future, you will make it happen.
0 votes Thank Flag Link Sun Aug 28, 2011
Greg, as a mortgage banker I can tell you that it is almost impossible for you to get a mortgage with a 560 FICO. Depending on your down payment, there are lenders who are willing to go below the 640 industry standard, but we're talking 580 or 600 at most.

The best advice I can give you is to hook up with a loan officer and have him/her check your credit. From there, they should be able to tell you step by step, what you must do in order to increase that FICO and prepare yourself as best as possible to be mortgage ready. I must tell you that not always is there a way to increase your FICO to an acceptable 640 or so. You should also know that your FICO is just one of many factors that come into play when obtaining a mortgage. It is totally possible for you to have a 720+ FICO score and still not qualify for ahome loan.
0 votes Thank Flag Link Sun Aug 28, 2011
The higher your credit score the better (lower) the interest rate is. The banks all have different products and guide lines for qualifying for a mortgage. Start inquiring at the mortgage dept. of the bank where you have your assets and/or accounts. Then try the major lenders like De Capital Mortgage, Wells Fargo, Continental Home Loans to name a few. Mortgage brokers can also apply to different banks for you. Ask for a pre-approval and the loan officer will lead you through the steps., Call me for my report on Tips to Increase your credit score.
Best of Luck
Lynn Pisani
Lic Assoc Broker
Prudential Douglas Elliman Real Estate
516-547-1356
0 votes Thank Flag Link Sat Aug 13, 2011
There are other factors besides credit that determine mortgage qualification; therefore visit with any loan officer, after reviewing your overall financials, credit, debt, etc., a determination can be made; if you don't yet qualify, he/she may offer great suggestions as to what needs to be done in oder to qualify in the near future. If you need recomendations, feel free to contact me directly.
0 votes Thank Flag Link Sat Aug 13, 2011
Probably not today, but you should consult a local mortgage banker anyway. They will be able to tell you exactly what you can do today, and they will tell you how to improve your credit score, sometimes in a very short time so you will be able to buy in the not so distant future if not today. See if you can find a Residential Home Funding in your area. I have worked with them extensively here in New Jersey and I find them to be absolutely fabulous at working with buyers just like yourself to find out exactly what the situation is today and what needs to be done to make it better tomorrow.

Hard Money Lenders are an option, but the interest rate is going to be very high. Still, you can try that and refinance later, but it may be best to spend the next few months repariing your own credit score.

Good Luck!
0 votes Thank Flag Link Sat Aug 13, 2011
Truthfully, it will be difficult considering banking guidelines at this time. The only other possibilities are with a "significant" down payment or hard money lenders. Best of Luck
0 votes Thank Flag Link Sat Aug 13, 2011
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