Home Buying in Los Angeles>Question Details

Annie Chen, Home Buyer in Los Angeles, CA

I have a credit score of 600. We are first time homebuyers. Does anyone know any lenders that offer bad credit FHA loans with a score under 620?

Asked by Annie Chen, Los Angeles, CA Thu Nov 21, 2013

We cannot afford to put more than 3.5% down at the most, down payment assistance would be great! Ready to move ASAP, have great income! Thank you!

Help the community by answering this question:


Yes! I know a lender who can offer FHA loans with a 560+ credit score with 3.5% down. There is also a new program that offers a 99.5% LTV - so just .5% down with a 580 score. I can take a look at your credit to see if you can increase your scores to the 620 mark for a better rate. If we cannot get you to a 620 score and you want to buy ASAP then FHA is definitely an option to purchase your new home right away!
4 votes Thank Flag Link Thu Nov 21, 2013
Thanks again Randall hopefully your lender can get me approved! Just got off the phone with him thanks for all your help!
Flag Fri Nov 22, 2013
Your score is still acceptable! The lowest credit scores lenders like myself are able to do, is a score of 580. So us lenders would be able to give you a loan if your other finances are in place. It's also important to understand that you're ability to obtain a loan relies on other factors as well. These factors include income, expenses, assets, liabilities, debt, employment, down payment, as well as credit scores. Either way, I suggest you speak with a lender like myself who would be glad to speak with you to help you get the loan that you need. If you have any further questions or if you would like a loan, feel free to contact me. Good Luck! Brian Nguyen Sr. Mortgage Banker NMLS # 659743 Phone: 949.667.2887 brian.nguyen@nafinc.com
0 votes Thank Flag Link Mon Feb 3, 2014
I work with some lenders that would be able to do that, depending on your debt to income ratios and your income, but they also have price adjustments or extra charges for low credit scores, so watch out for that when you get a loan. It may be worth your time to bring it up a little first. Contact me if you need more help with this.
0 votes Thank Flag Link Sat Nov 23, 2013
Your credit score is not that bad, however, there are easy ways to improve it. Like, for example, you should reduce your debt, so lender will consider you less risky, and it will be definitely easy on your monthly mortgage payment. You shouldn't also have your credit cards max-out, if they are, try do reduce your balance to 10%. I would recommend to improve it first, then get your mortgage. However, if you feel like you want mortgage asap, this site will definitely help you https://www.homemortgage.net/
0 votes Thank Flag Link Fri Nov 22, 2013
Make sure any loan officer that tells you they can do it spends the bucks to run DU or some other AUS. The minimum credit score thresholds are only lender overlays, FHA’s TOTAL Scorecard is the real test and unless the loan officer/lender spends the money to run it then they are only guessing. A pre-approval letter is not proof they ran it, make them show you the findings, hate to see you waste money because someone hopes it sticks.

A live underwriter’s thought process - Annie says she has great income, but she has bad credit, what gives? If she can’t pay her obligations now how is she going to be able to pay them if we lend her a mountain of new debt? Will I lose my job if I approve this loan?

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Fri Nov 22, 2013
Yes, we go down to a 600 credit score. ans I would love to help you with that.

Rich Littlefield

NMLS 287206 Equal Housing lender
0 votes Thank Flag Link Fri Nov 22, 2013
Maybe I'll be the one saying what you don't want to hear, but I do think it's a good idea to address the root of what's causing the scores to be where they are. If you have open collection items or debts that need to be paid, your score will only partially matter. FHA and most lenders will have requirements for addressing collections, etc., prior to close and whoever you choose to work with will need to inform you of those items at the start.

Finding a lender who can lend with a low score, finding a program that will reduce your down payment, these are great things. But if you have, for example, $15K of collections that must be paid before you can even get to the closing table, that's something it will help you to start working on now. And likely, over time, doing so will improve your credit too.

Rob Spinosa
0 votes Thank Flag Link Thu Nov 21, 2013
Randal I have 2 lenders that can offer you FHA assistance. Please contact me direct at 951-538-4126
0 votes Thank Flag Link Thu Nov 21, 2013
It would be best to try and get your score above 620. You will get much better pricing.

Alex Greer
Loan Officer
NMLS #1056079

0 votes Thank Flag Link Thu Nov 21, 2013
The best thing to do is to contact a reputable lender to discuss what they can do for you. I have a great one I work with so send me an email if you would like a referral (no obligation).
0 votes Thank Flag Link Thu Nov 21, 2013
Taking a look at your credit report is where you want to start. Often it is minor tweaks of your credit items that can make a huge difference in your score. I have been a licensed lender since 2000 and a Realtor if you have any questions I would be happy to help you!

Jason Medina
0 votes Thank Flag Link Thu Nov 21, 2013
Try Chris Hendricks at OnQFinancial. You can reach him on cell at 818-665-6066 or email him at chris@chloan.com. Good guy.
0 votes Thank Flag Link Thu Nov 21, 2013
You may want to try your state or local credit union. Some of them are not credit score driven and as long as you have attempted to clean up your credit file, taken care of any judgments and possibly re-established credit, they will sometimes give you a mortgage loan. And they usually offer first-time homebuyer programs with 100% financing!
0 votes Thank Flag Link Thu Nov 21, 2013
Hello Annie , yes I have many lenders that can work with this fico, but they would have to speak to you.
0 votes Thank Flag Link Thu Nov 21, 2013
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