Home Buying in Bedford>Question Details

lidiadeetsda…, Home Buyer in Bedford, IN

How do I find an FHA mortgage for a 595 credit score?

Asked by lidiadeetsdaria, Bedford, IN Wed May 15, 2013

My fiance and I are looking to buy a home and our income is fine but his ex left him in a horrible mess taking out loan after loan, apparently in his name, which he found out during their divorce settlement and he's paying off in chapter 13. I've searched for lenders advertising loans for credit scores under 600 but once we've gone through all the Q&A it's always the same thing, everything looks good but you need a 620 or 640 to be approved. We're a multiple income family with minimal bills, besides his ch13 of $110 a month and his tools through work of $100 a month we only pay out the basics such as rent, utilities, phone, internet and TV. I'd love to find a lender that would take 10 perfect years of renting at a higher rate than what I'm asking to borrow as a credit score but that doesn't seem to be happening. We're low risk but that number seems to be all anyone cares about even when they say they don't.

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Answers

2
It seems that your scores in your range should work. Lenders like myself can go as low as 580 when it comes to credit scores. Of course, your other finances will need to be in place as well including your income, debt, assets, employment, expenses, etc. The best thing for you to do is to speak with a knowledgeable lender like myself to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!

Brian Nguyen
Sr. Mortgage Banker
NMLS # 659743
Phone: 949.667.2887
brian.nguyen@nafinc.com
0 votes Thank Flag Link Tue May 13, 2014
Hi, I'm a Realtor in Bedford & work with many lenders. I don't believe you'll find a lender at this time to give you a mortgage with a credit score under 620. They will only look at your other circumstances AFTER the adequate credit score is confirmed. Although this seems unfair the mortgage industry got into a lot of trouble the last few years by giving mortgages to people who really couldn't afford them; because of that they are now being OVER cautious,hence the higher credit score requirement. I suggest you talk with a lender about ways to get the score up in the next 6 months-year so you will be able to buy a home in the near future. Many will take the time to explain how to go from where you are right now to where you need to be. If you'd like contact info for lenders that might help, please feel free to call me. 812-278-6794

Good Luck,
Sharron Cousineau, Broker
Keach and Grove Real Estate
0 votes Thank Flag Link Thu Jul 11, 2013
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