Home Buying in Shenandoah>Question Details

Julia Young, Home Buyer in Broadmoor/Sherwood,...

Does a redit score in the 500s qualify for aloan with no down payment?

Asked by Julia Young, Broadmoor/Sherwood, Baton Rouge, LA Sun Nov 4, 2012

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This question was asked from this property: http://www.trulia.com/property/3093909299-17726-Sugar-Mill-A…

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13
No. You have to prove to the person who is giving you money that you can and will actually pay it back. A score of 500 says you have have never paid a bill and probably never will.
1 vote Thank Flag Link Thu Nov 29, 2012
not always true. I pay my bills, but due to a high debt to income ratio, my credit score is low. And the debt to income ratio is incorrect, because it lists my parent's mortgage on my credit, my mom and i have the same name, and even though the credit companies have been notified several times and proof given. their mortgage, and their high balance credit card show up on my credit. Therefore, even though I have paid off 2 vehicles, and was never late, and paid my credit cards on time, and only slipped a little on student loans when I just graduated college, my score is 540. I can't buy a house to save my life. And explaining that to brokers who automatically assume people don't pay their bills also hurts people like me.
Flag Thu Nov 28, 2013
You might want to work on building up your credit score and saving for your down payment. No down payment and bad credit can be a recipe for disaster.
1 vote Thank Flag Link Thu Nov 15, 2012
You may talk to a mortgage banker to see your options because they are the proffestional about this.
0 votes Thank Flag Link Fri Mar 29, 2013
if you pay your bills on time, your credit score would not be in the 5, now would it?

just simple caution---- as i previously stated,

TYPICALLY, if You have a low credit score itsbecause you have had RECENT FINANCIAL PROBLEMS! JUST THAT SIMPLE

. Dont be a sucker, dont lose your money. This is a 30 YEAR COMMITMENT! Take your time, build your wealth, build your credit...and AVOID LIKE THE PLAGUE ANY REALTOR OR LOAN OFFICER TRYING TO TAKE YOUR MONEY WHILE YOU CURRENTLY DEMONSTRATE FINANCIAL ISSUES
0 votes Thank Flag Link Fri Mar 29, 2013
Hey Daniel,
Not sure who you are, but let go of the blood sucking thing. If you pay your bills timely lenders will loan you money. If you don't, they won't. It's really that simple. If you have a credit score in the 500s then you need to think about your debt and your ability to repay it. Something isn't right. There's nothing "blood sucking" about it. This is a question of risk evaluation. If you want to buy a home with somebody else's money then you need to be able to demonstrate that you can repay loan. If you can't, then a lender won't lend and be prepared to pay cash. I think a better question is why you think that someone should lend you money to buy a home when you have none of your own money invested (i.e., no down payment) and a poor history of loan repayment. Why would anybody or any financial institution do that?
0 votes Thank Flag Link Fri Mar 29, 2013
this is what the blood sucking realtors are not telling you.. You have a low credit score for a reason....there are tens of thousands of buyers like yourself who lost their home to foreclosure because they were suckered into a home loans with low credit scores ............because the blood sucking realtors and the blood sucking loan officers will get a quick commission

You have a low credit score because you have had recent financial issues. Dont be a sucker, dont lose your money. This is a 30 YEAR COMMITMENT! Take your time, build your wealth, build your credit...and AVOID LIKE THE PLAGUE ANY REALTOR OR LOAN OFFICER TRYING TO TAKE YOUR MONEY WHILE YOU CURRENTLY DEMONSTRATE FINANCIAL ISSUES
0 votes Thank Flag Link Fri Mar 29, 2013
Once you build your credit score to 640 you will qualify for a traditional loan, in the mean time I would suggest saving enough funds for a 5% down payment which will qualify you for a bond for deed home. Contact me if you are interested in one of these homes.
0 votes Thank Flag Link Mon Feb 18, 2013
No, The magic number is a 640 middle score; very rarely you can get by with a 620 especially with no money down. If you are trying to build your credit my advice would be to get a secured credit card that reports to all 3 bureaus; which is Equifax, Transunion, & Experian. So go to your larger Bank institutions and see if someone can help you there with that. And never have 30 day lates on your bills; bc unfortunately your scores will never increase.... it takes hard work and discipline but anyone can become a homeowner. If you need guidance I'd be more than happy to help! Send me an email through Truila.
0 votes Thank Flag Link Fri Jan 25, 2013
do not be discouraged, were there is a will there could be a way. If you want something bad enough. and team up with the right lender.
0 votes Thank Flag Link Sat Jan 5, 2013
The Lenders are funny; when you have a 500 SCORE, they tend to think that you are not doing a real good job of paying your bills on time:
And those silly fools think you might continue to do that.
0 votes Thank Flag Link Fri Nov 30, 2012
No, you would need a minimum of 620.
0 votes Thank Flag Link Fri Nov 30, 2012
No. You will need a score of 620 - 640 to qualify. Speak with a lender and they can advise you.
0 votes Thank Flag Link Sun Nov 4, 2012
Usually you'll have to get to 620 & go rural development might be your best option.
0 votes Thank Flag Link Sun Nov 4, 2012
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