Yes it is possible to purchase with 20% down if your FICO score is 580.

One thing I would advise is double check your three major credit report files, Experian, TransUnion, and Equifax, you can get a free report from them going through Annual Credit Report.com. Challenge any inaccuracies and outdated information being reported, this might help you bring your score up. You will be surprised how much bogus information is being reported on most consumers.

Hope this helps you.

I have a lender that will work with a 580 score as long as you have rented for 2 years from a landlord not related to you. Call Albert Rolon = Marquis Mortgage 915-630-1376. Let him know I referred you and if I may be of assistance, please do contact me at 915-549-6530, Maricela Andrade, ERA Sellers, Buyers and Associates; maricelaandrade@sellersbuyers.com;

As stated by the previous Mortgage professionals FHA guidelines require no minimum credit score and with 20% down and a credit score between 590-600 you shouldn’t have a problem getting approved for a home loan. I'm a Realtor in El Paso and work closely with several mortgage companies that can assist you. You can contact me phone or e-mail, LaneHarris@sellersbuyers.com or (915) 443-8423

Hello Ilene! I am mortgage planner in Tampa, FL. One of the lenders we deal with in Texas has an FHA portfolio program that accepts 580 credit scores for a home purchase. It would require only 3.5% down payment, and if you have not owned a home in the past 3 years, you will qualify for the $8000 Tax Credit after closing. I can offer additional information if you are interested. You can email me at lowratehomeloans@gmail.com, or contact me at 813-421-2735. Thanks!

http://dallasloanguy.com/docs/about_credit.pdf

Here is a free book about credit..... Maybe you can get your scores up soon.

Try Wells Fargo or BofA locally. They should work with you bases on what I know of this scenario

There is a common misconception out there that the lowest score any lender will accept is a 620 and that is simply not true. FHA guidelines allow for no mimimum credit scores however many lender have made their own guidelines restricting credit scors that are less than 620. With 20% down you have several options for home financing at your disposal. I am more than happy to walk you through what needs to be done in order to increase your credit scores to a 620 so you can obtain a better interest rate. It is important to know that even though some lenders allow scores lower than a 620 there are rate adjustments for these scores. I hope this helps and take a look at our website if you have more questions. Thank you.

Nene-
I know that we will do a conventional loan with a 580 score so you are welcome to work with us. I am sure there are some other lenders who will do it but you will want to work with a bank directly instead of a broker.

If you have any questions, feel free to contact me.
Luke Allison
Bank of America Home Loans
828-777-8828
luke.allison@bankofamerica.com

FHA loan programs would consider credit scores as low as 500.

Although please NOTE: FHA has an upfront mortgage insurance premium (UFMIP) AND a monthly mortgage insurance premium (MIP)...although I believe these costs are well justified to help you become a homeowner and to help you begin building your personal wealth.

You should know that the Banks make their decision to lend based on the the borrower's 4 Cs:
1. Character (your credit payment history...NO credit is better than late payment history)
2. Capacity (income - verifiable and steady)
3. Capital (liquid assets - sources of down payment)
4. Collateral (appraisal value of the property you are considering to buy)

Therefore, your credit score is just 1 factor of the overall credit package.

Refer to here to find an experience local FHA lender: http://www.hud.gov/ll/code/llslcrit.cfm

Also, make sure you ask the FHA lender to submit a "manually" underwrite loan package so the FHA lender could help you to manually justify the compensating factors for your 580 score...this approach will give you a higher chance of loan approval. An "automated" underwriting loan package will reduce your chances.

I hope the information helps.

Try increase your credit scores move forward purchase a home. or lease purchase house you want buy after you resolve your issues. Scores need be approx. 620 +

National Featured Realtor and Consultant, Mortgage Loan Officer, Credit Repair Lecturer
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Lynn911

Some will do 600 but most lenders now require the 620 fico. Do you have any debt that is hurting your score? Why not take 10% of that cash and lower your debt to credit ratio? A 620 fico will get you FHA which requires 3.5% down. Then you need money for closing costs which I do not know what they are in TX.

Just a thought. You could consult a professional in credit repair or finance if you have any questions prior to making the decision.


Sean

Oh and have 2 yr + credit history never late.....my credit is immaculate, just paid 6k in debt(some has not reflected)