With low credit score loans, you usualy end up working with banks that do FHA insured financing. In the past 5 years, many of these banks have run into trouble with the FHA because of the foreclosure crisis that has happened to our country. For this reason, lenders have been moving from going as low as 500 with their credit scores to up to minimum 620 credit scores. It's not the program that changed, but the ability for that particular lender to take on "riskier" FHA loans. My company is what is called a Ginnie Mae Direct Lender which means we do millions of dollars in FHA loans each year. I am proud to say that we are still doing loans down to 580 credit scores as of January 2010. If you are interested in inquiring or have anyone else that might need our help, please write me an email at email@example.com or call me at 646-737-4481. I look forward to hearing from you!
This does not constitute an attorney client relationship or legal advice
Licensed Real Estate Salesperson
Charles Rutenberg Realty, LLC
127 East 56th Street, 4th Floor
New York, NY 10022
(212) 688-1000 ext. 435
(212) 688-1919 fax
1) There are mortgage programs that allow for financing with scores as low as 580. However, certain negative items are not acceptable(recent bankruptcy etc)
2) Certain co-op or condo's have their own guidelines regarding the purchasers in their projects. Those might be stricter than the bank's requirments.
3) You didn't share in your post whether or not there were other issue in obtaining the mortgage - income, down payment etc...
Best to sit down with a lender/broker and talk about your situation.
Find a reputable mortgage broker with access to a variety of loan programs, let them shop around for you. sure it may cost a point or so (1% or so) but it's worth it - especially if a broker can get you a decent 30 or 15 year fixed rate loan with your current situation.
To make the broker's life easier put together a few credit reference letters from companies you already do business with. If your account is in good standing you should be able to obtain them. Try calling your light, gas, and cable company to start. Your FICO score is only one part, so I've been told by a mortgage broker that I trust and is helping people obtain loans in this fashion, in today's environment.
Hope it helps.
Clear Path Brokerage, Inc.
Rodrigo Mora, CIC