Home Buying in Pittsburgh>Question Details

Ahebert91, Home Buyer in 15147

First time home buyer?

Asked by Ahebert91, 15147 Mon Feb 11, 2013

What are some lenders out there that go down to that low of a credit score? I read that some fha lenders require that with a score lower than 580 will require 10% down payment. We have 10-15% down payment and we were looking for a house within the 40,000-50,000 range. Stable income. We can prove that we have made ontime payments and early pay off dates on 2 car loans. The only negatives on the credit report are medical bills.

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I have hear that Wells Fargo has a lower credit score program. Good luck on your search
0 votes Thank Flag Link Sun Mar 3, 2013
The 640 Credit Score is the minimum credit score to buy a home with most Lenders in the United States today. But a 640 credit score is a far cry from a 680 score or even a 720 score. There are substantial differences in the quality of the credit history; a 640 score is "just good enough" but doesn't necessarily define a quality credit history.

MyFICO.com defines the logic of credit scoring as being "predictive." That's why financial decision-makers for mortgage loans, credit cards, auto loans and other credit decisions rely on the credit scoring system: to predict the potential risk of a lending or credit-approval decision. A lower credit score "predicts" certain things about the Borrower's financial position in the world and the ability to repay debt.

While a 640 score may be sufficient to qualify for FHA Insured financing with many Lenders, I have some more practical advice for HomeBuyers today. I strongly recommend you review your finances, especially your credit, and take your time to prepare for the homeownership experience. Buying a home and taking on a mortgage loan is a HUGE step. If your credit scores are less than 680, you really need to get better prepared so that you don't find yourself in trouble soon after buying your home.

Folks with poor credit and insufficient financial standing who purchased homes during the BOOM got easy mortgage money, but look at what happened after the fact. The mortgage is your responsibility; prepare yourself with strong credit, sufficient savings, and consistent, reliable income before you consider buying a home.

Sure, there are zillions of mortgage people who'll volunteer to help you with financing now if your credit scores are lower than 680. Based on real world experience of 22+ years in this industry, I'd suggest those mortgage people aren't offering valuable assistance, only leading you to a potential financial disaster.

Think for a moment of some of the bravest people who live and work in our towns and cities in the United States: Firefighters. I have seen firefighters jump off a still-rolling fire truck and rush into a burning building. The incredible risk these brave people take is tempered by one important element: Training. When they're not putting their lives on the line for their communities, firefighters are training like Olympic Athletes. They train constantly for a simple reason: they need to prepare to run into burning buildings and to deal with the unkwown factors of a fire.

So, I ask you this: If the Bravest people in our communities, who put their lives on the line every day, wouldn't DARE think of running into a burning building without the proper training, why would someone who isn't prepared take on the daunting task of homeownership?


Trevor Curran
NMLS #40140

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0 votes Thank Flag Link Mon Feb 11, 2013
Most lenders are looking for 620 to do a loan, even the ones that went lower seem to have tightened up their requirements lately.
0 votes Thank Flag Link Mon Feb 11, 2013
You would want to have a lender run your credit report to confirm the scores unless you've done so already (I can help you on this). From there you can determine if credit repair is necessary & you'll have the report to provide to Paul Ritter who I highly recommend also.
0 votes Thank Flag Link Mon Feb 11, 2013
If you would run the credit and confirm the numbers for me that would be great.
Flag Mon Feb 11, 2013
I just had a buyer with a lower credit report. Even with 20% down they could not get pre-approved. Call Paul Ritter ( cell) 412-242-2733. He is a credit restore. He might be able to help u. He has helped some of my clients out. He does a free consultation. paulritter@creditinvestigationservices.com (office) 412-242-2733 Good luck!
0 votes Thank Flag Link Mon Feb 11, 2013
under 580 is probably not going to happen with less than 20% down and your dti will need to be about 40%---- still a long shot- you will have a VERY tough time unde 580.
0 votes Thank Flag Link Mon Feb 11, 2013
Wells-Fargo may be able to help.
0 votes Thank Flag Link Mon Feb 11, 2013
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