Rs,

You don't always have to seek a "mortgage broker", you can get financing through your bank or credit union as well. My best answer for you question is to seek assistance from a state funded program. At this point in time most investors are not accepting anything under a 580 middle without a manual underwrite. What I have seen is they will accept some down to a 550, but it has to be manually underwritten.

FHA does not base your approval off of your credit score. They do not care about credit score if you meet FHA guidelines. However, banks do care about your credit score, they will alot of times not service certain loans or purchase them to be serviced. In my state the only program that does not require a minimum credit score is our state bond money program which is excellent, and I have seen similar scores get financing. So check into your state programs, alot of times you will have to be a first time homebuyer to qualify, but give it a shot. Good Luck and I wish you the best with everything!!!

Brent Bester
Mortgage Professional
614-622-8916
bbester@usavingsbank.com

Fri May 16 2008, 18:19

you need to call a mortgage broker to go over your options. A good mortgage broker will get you going in the right direction to get your score up!

Fri May 16 2008, 10:55

You want to check with a mortgage broker and have them see if you could get a manual underwrite done. The low score will make it a challenge. Another option many people in your situation ( cash for down payment and cash flow ) are considering is lease purchase. More and more sellers are willing to do a lease purchase where the buyer agrees to lease the home for 6 - 12 months while their score or credit history is restored to the point they can qualify for a mortgage. This is a win for the seller in that they have their home under contract and can move on with life without the burden of the monthly payment on a home they no longer live in. The buyer wins by getting into a home they may not otherwise be able to get approved for.

Fri May 16 2008, 09:52