Home Buying in 15146>Question Details

Melissa, Renter in Monroeville, AL

Can my husband and I get a loan for a house with credit scores around 600. we are first time homebuyers

Asked by Melissa, Monroeville, AL Wed Feb 23, 2011

we are having a hard time getting a loan to purchase a house and are wondering if there are any lenders out there willing to work with a newly married couple who are serious about owning their own home despite mistakes made in the past.

Help the community by answering this question:


The answer is yes. Being serious is the main thing I see here. I have helped many people over the years put a plan together. Yes that plan thing. Only a handful have come back and said they were ready but that is what I hope for when I offer my help. Give me a call. It will cost you nothing. Benny Smith 412-498-7868
1 vote Thank Flag Link Sat Jan 25, 2014
I have been talking to many different people and reading many different articles on what I should do to secure a home loan with a 600 fico ( estimated) ... mr.smith was very informative and genuinely concerted about my actions... give this man a call if you want to deal with an agent that isalways therefor ya, even on sundays ;)
Flag Sun Jan 26, 2014
The best thing to do is visit your local bank, Credit Union, etc and just apply... If it is successful, then congrats, If it isn't, they will tell you why... Many times it can be something simple on your credit report or even an error that can be corrected asap.... Always good to work with the places you already do business with!
0 votes Thank Flag Link Tue Aug 12, 2014
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0 votes Thank Flag Link Tue Aug 12, 2014
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0 votes Thank Flag Link Tue Aug 12, 2014
You should sit down with a lender and see how you can improve your score. There may be lenders who can get a mortgage but rates may be high. Go to http://www.hud.gov for resources and names of lenders and credit counselors.
0 votes Thank Flag Link Sat Jan 25, 2014
Hi Melissa,

There may be lenders that you may be approved through with a credit score around 600. However, most lenders require 620 credit score at least and the rates will not be very favorable. It will be expensive and I would recommend you to really look at your current situation and see if you can improve the scores before you make an important financial decision like buying a house.
0 votes Thank Flag Link Tue Mar 13, 2012
There are many different types of financing with different requirements. One of the most popular is the FHA financing which has no minimum credit score requirement. Any minimum is set by the individual mortgage lender and not the FHA (who insures the loan to the lender). Some lenders set 650 or 620, while some 600 and others may even use 580 as their minimum required credit score.

In the March 2011 addition of the Realtor magazine (the National Association Of Realtors monthly publication to it's membership) there is an article that states "Wells Fargo will accept borrowers with credit scores of 500 to 579 if those borrowers can make a down payment of at least 10 percent; gifted funds or other down payment assistance is not allowed. For borrowers with credit scores of 580 to 599, borrowers must put down 5 percent, with the same restrictions on gifts and assistance funds. Borrowers with credit scores of 600 or higher can make a 3.5 percent down payment.

The new policy took effect Jan. 15." Now this is Wells Fargo and not all lenders but with the large volume of loans and so many mortgage brokers brokering loans through Wells Fargo we may might see other lenders following. Also you must keep in mind that credit is not the only criteria that lenders use in determining whether or not they will approve a mortgage loan.

There are numerous reasons a lender may reject a loan application. For instance, even if you have a credit score of 800 and are unemployed and have no visible, verifiable income they more than likely will not grant the loan approval.

I hope this better clarifies some of the possibilities and the need to actually speak with a professional mortgage lender for a pre approval for a mortgage loan. I am always available for further discussion by calling me.
Thank you and good luck,
0 votes Thank Flag Link Sat Feb 26, 2011
Yes but that may be doing you more harm than good. Getting approved with a low score costs more. That is a fact and more cash is needed just to pay the higher rate. Next option is seller financeing. If you are serious then you have a budget and have been saving cash. Cash is the most important thing when dealing with seller financing. Never go to a seller without your own agent. My point here is you need to share your real circumstances with your realtor. If you are not at this point yet then you need to set down with someone who can get you both on the right path. I kwow it is normal to want it today or never but if you are indeed serious about getting a home this is how to do it. Call me or some other realtor with a background in personal finance to get going.
Sincerly Benny Smith
0 votes Thank Flag Link Thu Feb 24, 2011
It's true that some types of financing are affected by credit score, but not all. There are some types of financing that if you are approved you may receive the same rate as someone with a higher credit score. Many areas of the country are experiencing declining prices while the Pittsburgh area real estate market is one of the nations best. In fact some studies have shown that values in this area have increased over last couple of years and speculate that they will continue to increase. Also while interest rates are still very low they have been increasing in the last couple months and many feel that rates may continue to increase. If you can buy now you should consider it.
0 votes Thank Flag Link Wed Feb 23, 2011
it takes about 6 months to improve your FICO scores to mid or high 600s if you do it right. You will also get a bit more favorable rate or loan program. By any luck, the house you want to purchase now may even be cheaper 6 months from now. Don't rush into thing when you are not ready.
0 votes Thank Flag Link Wed Feb 23, 2011
First time homebuyers have been my specialty for 16 years and there are some programs that fit that 600 score. Feel free to give me a ring on my cell tomorrow, 412 726 1654
0 votes Thank Flag Link Wed Feb 23, 2011
It is very possible. However there is more that the lender looks at then just your credit scores (income, employment history, etc.). Also there are many programs available including special first time home buyer's financing. I recomend you speak with a mortgage lender and request a pre-aproval for a mortgage loan. The mortgage professional that I suggest you contact is Jim Franco owner of Welcome Home Finance 724-772-3333 ext. 2114. I have been helping people find homes here in Monroeville for 34 years and he is one of the best I have dealt with. Good luck and feel free to call me for further discussion.
0 votes Thank Flag Link Wed Feb 23, 2011
If you haven't done so yet, consider visiting with any qualified loan officer(s)-- after reviewing your information, overall financials, credit, debt, etc., a determination on qualification can be made, how much, how much down, etc.; if you don't yet qualify, your loan officer may offer great suggestions as to what needs to be done in order to qualify in the very near future.
0 votes Thank Flag Link Wed Feb 23, 2011
I think you may have a chance, but there are some conditions...some of the guidelines have been relaxed a little in the past week or two. Please give me a call when you have a few minutes and I'll hook you up with a lender you can talk to.
0 votes Thank Flag Link Wed Feb 23, 2011
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