Home Buying in 51104>Question Details

Joes204, Home Buyer in 28040

I have a credit score of 602 and I can't seem to get an FHA loan. Are there any particular banks out there that would work with me?

Asked by Joes204, 28040 Mon Nov 28, 2011

I really would like some help to get me guided in the right direction about which banks will accept my 602 credit score right now until I can get it up there and possibly refinance in a couple years. I really need more space and I'm tired of paying rent that goes nowhere! Please help!

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FHA really isn't credit score driven, it's the Banks and Lenders that set those score requirements. There are a few lenders that go down to 580 with FHA, I personally have closed on several homes with clients around and under 600. I recommend all my clients that have credit issues to check with The Lenders Network, check them out. If anyone can get you approved they can!
2 votes Thank Flag Link Tue Jul 16, 2013
Ron,
I am so sorry just now saw this reply, I will have one of the guys from TLN call you asap, they work with several lenders that can go down to a 580 score..
Flag Sat Jan 18, 2014
i have found a house for 135,ooo and my credit score is 602 and they turned me down can you help me with a fha or farmers home loan. my number is 864 285-5491 it is a 2100 sq ft house and built in the 70's and completely needs remoeling inside and out and my friend and i can do all the work and probably get it for 125, ooo thanks for your h elp Ron Corbin
Flag Mon Oct 28, 2013
i have found a house for 135,ooo and my credit score is 602 and they turned me down can you help me with a fha or farmers home loan. my number is 864 285-5491 it is a 2100 sq ft house and built in the 70's and completely needs remoeling inside and out and my friend and i can do all the work and probably get it for 125, ooo thanks for your h elp Ron Corbin
Flag Mon Oct 28, 2013
Joes204,

At this time I have a 600-619 solution for you.

If the following apply to you, feel free to contact me via my profile or my website:

The items that follow are overlays for this credit score tier on top of the normal guidelines
Purchase ONLY
Single Family, Condo, PUD (no multi-family properties)
31/43 ratios
Two months reserves in cash** (bank accounts ideally)
No declining income
All deferred student loans count in the debt ratio

** If using non-cash reserves, those must be liquidated to show as "cash-on-hand".

I can be reached via my website or through my profile.
Web Reference: http://RobWeber.com
1 vote Thank Flag Link Tue Nov 29, 2011
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
Good afternoon Joes204,

We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.

It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.
http://www.consumer-action.org/

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.
http://www.consumer.ftc.gov/articles/0058-credit-repair-how-…

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes Thank Flag Link Wed Jul 17, 2013
There might be some local banks in your area that will give you loan with that credit score. They usually do it with in-house loan. I am not sure where you are looking to buy a house, but if it is in Ames, IA and nearby, I can help you with. You can email me @ didit.hartono@century21.com
0 votes Thank Flag Link Sat Dec 3, 2011
You can’t get a complete answer from only a piece of the puzzle. Most borrowers fixate on only one point, that is not how a loan application is underwritten, it is considered in its entirety. The best move is to have your Realtor introduce you to the loan officer they trust the most, meet with them personally and review all of your support documents not just a piece or two. Only then can you get a good snapshot of where you stand. Your credit score is a probability figure, it shows how probable it is for a lender to expect you to pay back the money on schedule. The lower the score, the less likely that is to happen. It isn’t the score that is the problem, it is your decisions regarding how you handle money that is the problem. Unless some outside problem happened like illness.
Buying a home only increases your expenses, and borrowing money to do it increases your liability a thousand fold versus rent. Good luck,
0 votes Thank Flag Link Tue Nov 29, 2011
FHA has very specific guidelines for mortgage loans. Even though you may not qualify for an FHA loan based on your credit score, there may be other options available based on your credit history and you will need to talk to a local financial institution to find out what those options are. Some states still have first time home buyer assistance available and if you are looking out of a metro area, a rural development home loan may be an option. Again...you need to talk to a mortgage lender at a financial institution in your area.
0 votes Thank Flag Link Tue Nov 29, 2011
There are other factors besides credit that determine loan qualification, such as income, debt, etc.; start by checking with the loan officer at the bank you currently do business with, any smaller banks, credit unions, mortgage brokers...
0 votes Thank Flag Link Mon Nov 28, 2011
FHA loans are not based solely on credit score. Lenders factor in many other criteria - debt, income, work history, etc.
0 votes Thank Flag Link Mon Nov 28, 2011
Hi Joes204,

I know Pacific Union Financial and First Mortgage Corporation will take scores below 600 but I'm not sure if they lend in your area.

You should contact a local mortgage broker.

Best regards,
Elva Wormley
0 votes Thank Flag Link Mon Nov 28, 2011
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