Home Buying in San Pablo>Question Details

Shayla, Renter in Pinole, CA

FHA, 20% down, but low credit score...what are my chances of getting a home loan?

Asked by Shayla, Pinole, CA Fri May 11, 2012

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Good morning Shayla,

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.

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.

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

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0 votes Thank Flag Link Wed May 8, 2013
Your may qualify for FHA 10% down with a fico between 500-579. I specialize in Under 640 Fico Score Loans and offer credit repair at no cost to raise fico scores to qualify. If we can get your fico up to minimum 580, you may qualify for CHF Access half percent down payment program which can also contribute towards your closing costs as well. I can qualify you in minutes with a few dozen questions and get you approved and out shopping for a home of your choice.


Sheryl Arndt, Real Estate Broker – Sr. Loan Officer CA only
REO & Short Sale Specialist
20+ Years Experience
DRE# 01140252
NMLS# 297251
0 votes Thank Flag Link Thu Nov 22, 2012
I am a registered broker with naaca...they specialize in loans for people with low credit scores. please call me if you have any questions.
0 votes Thank Flag Link Tue May 15, 2012
There are other factors involved that determine mortgage qualification, such as income, debt, etc.; therefore for a personalized answer visit with any local licensed loan officer....
0 votes Thank Flag Link Sat May 12, 2012
Hi Shayla,
I think it is definitely worth taking the time to talk to a good lender to see if you qualify. FHA does tend to be more lenient than others so the chances are you would qualify.
Feel free to call me for a good lender referral!

Carolyn Zeigler, CRS
Re/Max Accord
0 votes Thank Flag Link Sat May 12, 2012
Hope you're working with a lender to find out what your options are especially if you say you can put 20% down.

If you're not working with a lender yet, any one of us realtors in the area can recommend lenders you can speak with -- whether you prefer working with a direct lender (bank) or a mortgage broker.

All you have to do is ask.
0 votes Thank Flag Link Fri May 11, 2012
There are some FHA lenders that will accept lower credit scores with larger down payments so depending on how low your score is you might have a chance.

Good luck
0 votes Thank Flag Link Fri May 11, 2012

Your chances are pretty good. Much of it depends less on your three digit credit score then it does exactly what is in your credit file. I've seen people with very high scores but with foreclosure 2 years ago. They cant qualify. I've seen people with low scores qualify.

Contact this fella. He is local in Pleasant Hill and he will give you the straight scoop on it all. He is hands down the best lender I have ever found. He just closed a VA buyer that no other lender could close. He is honest, hard working and has great rates and fees. Please make sure you told him that Neil Case sent you and he'll take extra good care of you. Here is his name

Mike Trejo at Bridgepoint Funding. Mobile phone 510-912-7102
0 votes Thank Flag Link Fri May 11, 2012
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