Home Buying in 60016>Question Details

Carolyn, Other/Just Looking in Des Plaines, IL

Is it hard to get a home loan with credit score of 560 but have 10% or more for down payment?

Asked by Carolyn, Des Plaines, IL Mon Apr 30, 2012

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It would be very difficult. I would highly recommend raising your score. Many lenders can do automatic rescoring for you. They can tell you exactly what you need to do and then rerun that particular account. The rescore can be done in 5 days. It's really worth it. Let me know I can point you in the right direction. Good Luck!
1 vote Thank Flag Link Thu Jan 29, 2015
I work closely with Wintrust Mortgage and their requirement is a 640 credit score. -- To improve your credit quickly, pay off any outstanding late payments (or collections), get a credit card and just charge a pack of gum every month on it (and then pay it off every month), get rid of any car loans that are out of your budget, and most of all -- pay down your credit card debts.

Your debt-to-income ratio needs to be reasonable since they won't approve you for a loan if your debt is high compared to your annual salary (which should appear on your tax returns by the way).

If you are first time home buyer, there are some great IL programs where you only need to put down 1%. Hope that helps! --To learn more, just call me at 847-533-7115 or email MeyersRealty1@gmail.com. Thanks, John
0 votes Thank Flag Link Tue Oct 6, 2015
I was told that your credit score needs to be 620 and above for fha loan by my mortgage broker. Its also good to get rid of most of the small problems on your credit report. I did that and opened a very small line of credit and my score jumped 100 points up. it took me a while to handle these issues but if you pay things off little by little you can get rid of things on your credit. I know have to tackle my student loans. just set a goal you can manage.
0 votes Thank Flag Link Sat Jun 13, 2015
580 FHA can be done but has qualifying ratios that are difficult for many to qualify with, improve the score to at least a 620. if you need help improving your score, I can offer recommendations to improve the score for you to qualify with.

BJ Patel
Loan Originator (IL)
NMLS #1270313
Cross Country Mortgage
1430 Branding Lane Suite 190
Downers Grove, IL 60515
Office: 630-423-3600 xt. 5711
Cell: 630-337-5877
0 votes Thank Flag Link Wed Jan 28, 2015
I have a score of 671,but I had a late payment on a home equity line of credit in May of this year.
I am looking to purchase a 4 plex and have 20% down. Are there any lenders that would do a loan with this background.
I have been turned down going the conventional route because of the late payment.

Any help will be greatly appreciated.

0 votes Thank Flag Link Wed Nov 28, 2012
Credit score is one of the main criteria lenders use to determine if you qualify for a mortgage as it helps them to have an idea of the likelihood of you repaying your loan. If you are currently at a 560 credit score, you are not that far away from being able to be pre-approved. The Federal Savings Bank, offers a program that will help you assess exactly where you are and what you need to do in order to increase your credit score. If you're interested in getting more information about how the program works, please feel free to give me a call.

Cecelia Marlow
The Federal Savings Bank
Mortgage Banker
0 votes Thank Flag Link Wed May 2, 2012
Most lenders are looking for over 640, but some do 580-639 FHA. I would say 560 may be tough. But I would encourage you to speak with some lenders. Some can get you on a path to correct a few credit issues and get you qualified quickly.

You also may want to look at some smaller community banks who may portfolio some of their loans (keep and not sell them). Some may go for a lower score but a higher down payment, but under 580 is tough.

Good luck.
0 votes Thank Flag Link Tue May 1, 2012
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