Home Buying in Seattle>Question Details

Katiegirl, Home Buyer in Seattle, WA

I have a credit score of 572. Is there any way to get a home loan for 180-220K? I have 10% to put down.

Asked by Katiegirl, Seattle, WA Wed May 12, 2010

I have been working on repairing my credit for the last couple years. I am ready to buy a house now, i'm just not sure if my credit is good enough. I can put some money down, 10% minimum. All negative info on my credit is from years go, nothing recent. Any chance I can buy a house with a credit score of 572?

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Katiegirl, have you had a lender pull your credit report? Your scores will be different than what you can obtain as there are different scoring modules for lenders than the "free" credit reports or insurance, car loans, etc.

572 will be challenging. Many will go to 620 for the low-mid score (middle credit scores are used -- if more than one borrower is on the loan, it's the lowest middle score of the borrowers). There are price hits for lower credit scores that can be steep. Home owners insurance rates may be more too (based on credit score).

I really recommend first meeting with a mortgage originator you trust to review your credit. It could be some simple adjustments that will help pop your score up. You would be surprised at what hurts your credit--for example, if you're paying off and closing your accounts, this may actually LOWER your credit score even though this seems like the "responsible" thing to do.

I'm happy to review your credit at no obligation to you.
1 vote Thank Flag Link Wed May 12, 2010
Katiegirl,

Most of the information below is mostly correct. The short answer is yes, you can get a loan. On FHA, which is only 3.5% down, you will need at least a 580 credit score, most lenders want at least 620. And, of course, there will be mortgage insurance. There some Homesteps homes on the market which are owned by Fannie Mai that you can buy with 5% down and no mortgage insurance. Then there is USDA rural housing loans with 0 down out in the country. ( I can let you know in detail where they are, you you can log in to their site and see for yourself. As to your credit scores, it would be good to get them up higher and keep them that way. There is a company that has been doing that for over 10 years and they are 100% successful at what they do. I can put you in touch with them if you want.

If you want to consult further, I would be happy to work with you. I am a loan officer and a real estate agent and so I can help you with all of it. Feel free to give me a call at 206-841-9976, and let's find you a home.
0 votes Thank Flag Link Thu May 13, 2010
Katiegirl, Please pay attention carefully to any rates or pay off information or closing costs given to you by proffessionals who want your business. This is a very low credit score for purchasing a home. Some lenders are actually able to do rapid re-scores on items you can pay to raise your credit score. Lending has changed over the years though, and the banks are tighter. With that said, talk to a loan officer, have them take a look at your credit. Just so you are aware 620 is generally the bottom score # used to loan on homes now a days.

I don't mean to discourage you, there may be something that can be done I just don't want to see you or anyone get in over their heads with higher then normal interest rates or insurance costs. I know a few loan officers that I have personally witnessed help questionable credit, if you need a referral please feel free to contact me.
0 votes Thank Flag Link Thu May 13, 2010
Contact lenders in your area and ask to meet with them. Explain your situation and have them give you a realistic idea of where you stand. It's best to meet with at least 3 lenders to get a good feel for what is available. And while you want them to view a copy of your credit report, don't let all three of them pull one. Either pull one yourself, or only allow the first lender to pull one and use that information to get you started. By repeatedly pulling your credit report in a short period of time, it will actually take your score down further. The second, third, and subsequent lenders may not be able to fully commit to anything by using the first credit report, but they can give you a pretty good feel for where you stand using the information, and you can allow them to pull a full credit report of their own once you get closer to actually applying for a loan.
0 votes Thank Flag Link Thu May 13, 2010
Hi Katie,

A loan originator I work with has been able to work wonders with challenging credit scores. His name is Keith Yamamoto - 206-250-9360 - kkyyama@hotmail.com. He's very friendly and easy to work with.

Best of luck and congratulations on taking steps to get into a new home!
0 votes Thank Flag Link Thu May 13, 2010
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