Home Buying in Madison>Question Details

Udo4440, Home Buyer in Madison, WI

If you have a credit score below 600 can you still qualify for a mortgage if you have good job time and good income?

Asked by Udo4440, Madison, WI Sat Jul 9, 2011

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mortgage lenders in new jersey credits score under 600
0 votes Thank Flag Link Sat Sep 22, 2012
There is no product I know of which will let you get a mortgage with a credit score under 600. If you would like information about how to clean up your credit score,, please contact Peter Naputi from Guaranty Mortgage at 608-609-8211. The service is free. Good Luck.
0 votes Thank Flag Link Mon Jul 11, 2011
Q: If you have a credit score below 600 can you still qualify for a mortgage if you have good job time and good income?
A: Yes, there are lenders who will approve scores less than 600 but with a 600 or even 620 or 640 you'll have more options.

With scores less than 600 it usually is indicative of some bad credit at some point. With bad credit, all is not lost, because it depends on just how bad the credit is. You know your scores, so likely you also know what is on your credit report, and that is just as important as your scores. How has your past 12-36 months of credit history been?

FHA mortgages require a 500 credit score, and most FHA lenders minimum score requirements tend to be 600, 620, or 640 - with FHA anything less than a 580 score requires a 10% down payment, otherwise just 3.5% down is required.

VA mortgages have no score requirement, but VA lenders score requirements are similar to FHA's. VA is 100% financing for Veteran's.

USDA Rural Development mortgages are 100% financing, and have no score requirement - however if you go through a lender most will have 620 or 640 minimum scores, but if you go Direct to USDA they do not have any minimum score requirements, but it takes a little bit longer - Madison is not an eligible area. http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do to check the eligible areas and also if your income is not too high/within eligibility limits as well.

Fannie Mae & Freddie Mac mortgage programs require a 620 score, however with less than 20% down you will likely need at least 660-680 scores.
0 votes Thank Flag Link Sun Jul 10, 2011
I'm pretty sure you won't qualify for a mortgage with a score below 640 right now. But our company works with a company that has a lot of success increasing people's credit scores. I recently have sent 2 clients to them and both of my clients increase their credit score 80+ points in 2-3 months. If your credit score is the only thing stopping you from purchasing a home, please call me and we can probably help. Seth Peterson 608-320-9612.
0 votes Thank Flag Link Sat Jul 9, 2011
It will be very hard to get a mortgage with a credit score below 600. I have referred a number of clients to
a credit counselor. He is excellent and is very reasonable with his fees. Please email me at judybraund@kw.com, I will give you his contact information. Judy Braund, Keller Williams Realty 608-235-0431
Web Reference: http://judyandcompany.com
0 votes Thank Flag Link Sat Jul 9, 2011
good evening..call this lender...first national bank..they are in east lansing, michigan.ask for their residential lending dept...they do lend in youre state.....their website is fnba.com they will review your credentials over the phone...i have used them several times and they are a great lender...they are portfolio lenders...meaning they do not sell to fannie or freddie...terms will be around 20% down, perhaps more....rates in the high single digits w/a couple of points..and probably a five year balloon....once things improve for you, you can always rate and term refinance to a lower rate.
hope that helps.
bob mcclure
percentPlus
Web Reference: http://www.percentPlus.com
0 votes Thank Flag Link Sat Jul 9, 2011
This is a question for a mortgage lender. I highly trust Jo Long at 608 354 4171. he will also show you how to improve your credit as quickly as possible.
0 votes Thank Flag Link Sat Jul 9, 2011
No. Not easily, anyway. I'm sure some mortgage broker out there has something--a really non-conforming loan--that they can provide.

But if you have a good job and good income, you shouldn't have any problem raising your credit score to an acceptable level.
0 votes Thank Flag Link Sat Jul 9, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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