dalexanderv, Home Buyer in Rancho Cucamonga, CA

Can I get approved for home loan with 550 credit score?

Asked by dalexanderv, Rancho Cucamonga, CA Thu Apr 25, 2013

Help the community by answering this question:

Answers

28
550 is a little too low, The Lenders Network has lenders that go down to a 580 score. They also have a great diy credit repair guide for free you can download.
24 votes Thank Flag Link Mon Aug 24, 2015
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.
17 votes Thank Flag Link Tue Aug 4, 2015
There's a company out of Dallas that specializes in this. You can google Home Loans For All and I'm sure you can pull up their website.
17 votes Thank Flag Link Mon Jul 20, 2015
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.
14 votes Thank Flag Link Mon Aug 24, 2015
Hello dalexanderv, yes you may qualify for a home loan with a 550 fico score but it is a higher down payment score at 10% for FHA. You may qualify to buy FHA with fico scores between 500-579 with 10% down or minimum 580 fico score may qualify FHA 3.5% down or as low as .5% half percent down payment program. You may even qualify FHA with NO FICO Score with alternative credit. You may consider 3% down conventional from a minimum 620 fico score or even 5% down conventional with NO Mortgage insurance (Lender paid MI).

If you figure out what cities/zip codes you are considering, minimum number of bedrooms and the maximum payment/price you are looking to achieve you can be emailed listings to fit your search criteria. Your email address is needed to set you up for the automatic daily updates.

You will need to be pre-approved if you decide to buy to be able to meet an agent to view and submit offers on any homes of your choice. Your qualifications will be determined by your credit profile, debt to income ratios, fico scores, home price, loan program and how much you want to invest into the down payment and closing costs.

It only takes a few dozen questions to qualify, go over your options and email you listings to study and compare. Here are some links to study as well as web reference links to many loan program pages offered...

Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
Veteran & VA/CalVet Loan Specialist
REO & Short Sale Specialist
Credit Repair At No Cost
ALL Loan Programs Available
22+ Years Experience
BRE# 01140252
NMLS# 297251
760-486-4225
9am till 5pm by phone Monday thru Saturday, Sundays by appt., EMAIL ANYTIME 24/7
Under640FicoScoreLoans@gmail.com or HomeLoans4U@live.com
http://youtu.be/MrygA2_8fAY
http://www.trulia.com/profile/SherylArndt

If my response was helpful, consider clicking Thank, Link or Best Answer.
10 votes Thank Flag Link Tue Apr 14, 2015
Do u provide va loans in alaska? My mid is 579.
Flag Wed Sep 9, 2015
Hello Alex,
Today is your day!!!! I have closed transactions with lower credit scores. I may be the expert to assist you in your next purchase. I would love to assist you with the home buying process. Maybe we can discuss your interest and prepare a plan to invest in your new home. Feel free to reach out to me. My contact information is below if you have further real estate questions! I look forward to speaking with you soon.

Niradia Demmings,
Licensed in CA, #01720135
niradia.demmings@ziprealty.com
Cell: 323.209.7677
My Profile: http://www.ziprealty.com/agent/ndemmings
10 votes Thank Flag Link Tue Apr 8, 2014
This is not a good score, and mostl likely will keep you from getting a loan. Get with a mortgage lender to discuss your options and they may be able to give you credit counseling, which will give you direct examples of how to repair your credit and get your score up.
8 votes Thank Flag Link Wed Apr 2, 2014
I Like to buy a house with a score of 550 can I do it
7 votes Thank Flag Link Thu Jan 30, 2014
There are lenders that will get you a FHA loan with a 550 FICO but the lower the score the higher the rate and you will have to have a larger down payment... Here's another option Restore your credit its not cheap but the money you save on Mortgage Payment will more then pay for it self....We off a Credit Restoration Program... Its fast 30 to 45 days... we can even analysis your credit profile to tell you how fast we can get it done...We can't guarantee the score but we can guarantee to remove any and all derogatory items from your credit report...Bankruptcies, Foreclosures, Judgments, Tax Liens, Student Loans, Late Payments.
Flag Tue Apr 8, 2014
I like to buy a hud home can I get it with my score
Flag Thu Jan 30, 2014
Sheryl is very knowledgeable and always posts on Trulia so you should speak with her.
7 votes Thank Flag Link Wed May 29, 2013
I believe this credit score to be too low to qualify for a home loan. It has been almost a year since this post so I would get in contact with a lender to see if it has changed in the last 12 months. A good lender will advise you on certain items to take care of first and put you on the right track so that you can qualify for a purchase loan. Let me know if you need a referral.

Best of luck,

Alex Montelongo/Broker
Coldwell Banker Star Realty
562-810-7387 Cell
BRE Lic # 01456982
6 votes Thank Flag Link Wed Apr 2, 2014
Hi, Actually, YES you can get approved for a home loan with a 550 credit score. What should be asked however, is what else is needed to get a loan approved if you only have a 550 FICO. There are different programs out there. A lot is going to depend on many factors. Have you owned a home in the last 3 years, how much do you have for down payment, what type of property are you looking to buy, how specific are you with the needs of a property.. for example, there may be a house that is suitable to your needs but it might be 15 minutes from a specific area you might want to be in, or the price might be a little different, square footage might or might not be off but they are willing to sell you the house and carry the note, so your fico might not be the determining factor... Please call me for more information and help regarding your home search. Click on my photo and you will see my profile and contact info. :) Good luck!
6 votes Thank Flag Link Fri Apr 26, 2013
Good afternoon dalexanderv,

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!
6 votes Thank Flag Link Fri Apr 26, 2013
Unlikely you can obtain financing with a 550 fica score. Your next step is to locate a mortgage advisor with experience in credit rebuilding; you will have to spend some time and money to repair your credit in order to obtain a new mortgage.
Flag Wed Apr 2, 2014
great job at explaining
Flag Thu Mar 13, 2014
Hi , 580 is the minimum for your standard loan types ( FHA ,VA,USDA) and only certain lenders can do this ( First Mortgage Corporation,Chris Burns).

It is easy to get up to a 580+ following the lenders recommendations, or using a credit restoration service (Blanca Duenas is awesome).

There are some goofy loans out there that offer "alternatives" , but you may find them to be unrealistic.

If your willing to go to work, we can most likely have you in a home within 6 months.


Jory Blake
951.742.3751
Web Reference: http://www.JORYBLAKE.com
6 votes Thank Flag Link Fri Apr 26, 2013
First mortgage is great company, they got my FHA loan in Sacramento when no one else couldn't offer us.
Flag Thu Oct 3, 2013
Some agents will let you think that you would be able to achieve getting a conventional loan with a score of 550. My suggestion, and I always shoot from the hip is go to a an individual that cleans up your credit score, pay some of your credit cards off, and watch you credit score rise. Call me if you would like a referral of someone who can help you in this area. My name is Christine Curtess and I am a realtor for over 30 years in rancho. My number is 909-996-1883. See you on the other side!
5 votes Thank Flag Link Fri Apr 25, 2014
Not very likely with conventional financing.

I'm sure there's someone out there--a private investor, a portfolio lender--who'll lend you the money. It's very likely to be at a comparatively high interest rate.

The bigger question, honestly, is: Are you able to manage a home loan? A 550 credit score, frankly, is bad. It says you haven't repaid loans you said you'd repay. That might be because of poor judgment or unfortunate circumstances (such as a divorce or losing your job.) I don't know. But I do know that a 550 says your odds of repaying the loan are far less than someone with, say, a 640 credit score.

Work on getting your financial house in order first. And that does NOT mean using tricks to instantly raise (or try to raise) your score. Sure, contest any errors in your credit report. But if the report's accurate, don't try to game the system. Work on improving not only your score, but your ability to repay loans.

Hope that helps.
5 votes Thank Flag Link Tue Apr 8, 2014
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
Quite frankly - no.

With bad credit - any lender who would give you a chance, would likely do so by charging you an outrageous interest rate and other astronomical fees because A. you have no other options (and they know it), and B. to mitigate their risk. With a score of 550 - I highly doubt you'll find any lender willing to assume the risk.

Focus on rebuilding your credit into the mid-600's by identifying what is driving your low score, and work to resolve those issues. The higher the score, the more options you'll have - and the more choice and flexibility you'll have when shopping for a great rate.

Hope that helps!
5 votes Thank Flag Link Fri Apr 26, 2013
I would be happy to have you speak with a few of the lenders that I use so they could see. There are many different programs out there. Also, if they cannot help you, they can show you how to raise your credit score so that you can. This is free. Let me know if I can help!

Joan Patterson, B.A., G.R.I., Realtor, License #01431647
Keller Williams Realty
951-204-1864
http://inlandempirerealestate.kwrealty.com
5 votes Thank Flag Link Fri Apr 26, 2013
With a 550 credit score, you will not qualify for a mortgage/home loan. Don't believe the hype. Some people will say that you can, when you can't. Even if you raised your credit to 580, it is difficult to fit the criteria in order to qualify.
Do yourself a favor and really start attacking your old bills. Speak with a credit management company to help put you on the right track to rebuilding your credit. It could take a year or more but it is the right thing to do. You will feel great about it in the long run. You will then have a better chance at qualifying for a loan at favorable rates.

All the best,

Alex Montelongo/Broker
Colwell Banker Star Realty
562-810-7387 Cell
BRE Lic #01456982
4 votes Thank Flag Link Wed Aug 6, 2014
ICC Mortgage And financial Services, Is a sincere and certified private Loan company approved by the Government, we give out international and local loans to all countries in the world,Amount given out $2,500 to $100,000,000 Dollars, Euro and Pounds.

We offer loans with a dependable guarantee to all of our clients. Our loan interest rates are very low and affordable with a negotiable duration.

Available now


MORTGAGE, PERSONAL, TRAVEL, STUDENT, EXPANSION OF BUSINESS AND NEW UNSECURED, SECURE, CONSOLIDATE

AND MORE
Available now..

Apply for a loan today with your loan amount and duration, Its Easy and fast to get. 4% interest rates and monthly installment payments.

robertinc.linzer@gmail.com

Regards
Gary Cole
(646) 580-4839
4 votes Thank Flag Link Sat Jul 26, 2014
580 is the min score for FHA I believe. Check out The Lenders Network, they can help.
2 votes Thank Flag Link Tue Sep 8, 2015
Have you tried an FHA Loan? You don't need perfect credit for FHA loans. I think FHA goes down to 580. The Lenders Network is partnered with several lenders that work with low credit scores.
1 vote Thank Flag Link Tue Oct 6, 2015
You will need to be pre-approved if you decide to buy to be able to meet an agent to view and submit offers on any homes of your choice. Your qualifications will be determined by your credit profile, debt to income ratios, fico scores, home price, loan program and how much you want to invest into the down payment and closing costs.
1 vote Thank Flag Link Tue Oct 6, 2015
With a 550 credit score, you will not qualify for a mortgage/home loan. Don't believe the hype. Some people will say that you can, when you can't. Even if you raised your credit to 580, it is difficult to fit the criteria in order to qualify.
Do yourself a favor and really start attacking your old bills. Speak with a credit management company to help put you on the right track to rebuilding your credit. It could take a year or more but it is the right thing to do. You will feel great about it in the long run. You will then have a better chance at qualifying for a loan at favorable rates.
1 vote Thank Flag Link Tue Sep 8, 2015
Use InBedrock.com to analyze all real costs of homeownership, especially financing mortgage interest on after-tax basis. Help determine if your home is good investment vs renting or stock market. How much down payment do I need for a specific purchase price? Get InBedrock.com for all the answers. Best educational, informative and easy-to-use analysis for all costs of home purchase, closing costs/title insurance, mortgage financing + points, RE taxes/HO insurance, utilities, and eventual sellers commission + state transfer taxes when sell. Invaluable website! InBedrock.com
Web Reference: http://InBedrock.com
0 votes Thank Flag Link Thu Feb 11, 2016
Well, if you need help getting that 620 credit score, we can definitely help you. We've helped many over the years and have seen many clients gain 75 points or more in a 30-45 day period. This is not an overnight quick fix but if you follow our program we can help you. We delete collections, late payments, bankruptcies, child support, tax liens, judgements and more. Just check us out. Our consultation is FREE! 877-459-4554 or visit http://www.advancedcredithelp.com
0 votes Thank Flag Link Thu Feb 11, 2016
I am licensed to write mortgages in 31 states, I work for a direct lender in the mortgage industry who offers conventional, FHA, VA, and USDA loans. We keep your info private not broker it out and we go down to a 550 credit score. Are lowest score we accept for government loans are 550 when most lenders require a 620 and brokers a 580. You have to have two years of income with a score over 550 with bankruptcies discharge date 2 years and over. We have basic guidelines and a pretty easy process. Feel free to text me or call me anytime up to 10:00pm Eastern with any questions.
Brian Young 214-797-3479
NMLS 902687
0 votes Thank Flag Link Wed Feb 10, 2016
We send all of our clients with credit issues to a local company called Home Loans For All. They work with clients nationwide though and they've done a great job for us so far. Hopefully this helps anyone looking to buy a home that has credit issues. Don't be discouraged if a lender denies you. Home Loans For All can typically find a lender.
0 votes Thank Flag Link Mon Jan 11, 2016
Well, if you have clients that need help getting that 620 credit score, we can definitely help them. We've helped many over the years and have seen many clients gain 75 points or more in a 30-45 day period. This is not an overnight quick fix but if you follow our program we can help them. We delete collections, late payments, bankruptcies, child support, tax liens, judgements and more. Just check us out. Over 14 years in the industry! Our consultation is FREE! 877-459-4554 or visit http://www.advancedcredithelp.com
Flag Thu Feb 11, 2016
Yes, you can be approved with a 550 credit score, however, the minimum down payment is 10%.

Please feel free to contact me if you would like more information.

Best regards,

Elva A. Wormley
Mortgage Consultant
34+ Years Experience
Office (408) 615-8500
C2 Financial Corporation
2845 Moorpark Avenue, Suite 209
San Jose, CA 95128
NMLS #331981 / BRE #01274093
0 votes Thank Flag Link Mon Aug 24, 2015
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer