Home Buying in Austin>Question Details

kathy_bright…,  in Greensboro, NC

Is it possible to buy a home with a 580 score?

Asked by kathy_bright53, Greensboro, NC Thu Apr 25, 2013

Help the community by answering this question:


YES! We are able to finance FHA loans (3.5% down) with middle credit scores as low as 580!

We're licensed to originate loans in AL, AR, GA, IN, LA, MS, OK, SC, TN & TX.

Feel free to apply online at http://www.rhlapps.com/kjones or give me a call. :)

Realtors: I would love to help you with your clients! All I do is 580+ FHA...no investor overlays!

K.C. Jones
RH Lending
1 vote Thank Flag Link Fri Apr 26, 2013
Yes. You'll need to show that you've been self-employed for at least 2 years. A lot of the time folks who are self-employed write off so much that they can't qualify for a loan. If your net income is enough you should be OK.
Flag Fri Apr 26, 2013
Thank you, K.C. Does that include self-employed?
Flag Fri Apr 26, 2013
Yes, I know of a lender that goes down to 580 on FHA in Texas. I don't know anyone in NC though
0 votes Thank Flag Link Fri Apr 26, 2013
A little surprised to see the answers here. No answer is NO. Owner finance does have the option to overlook a 580, but the will no doubt require at least 20% down. Your only realistic option is to increase your credit score to at least 600 to 620 before a lender will take you serious. Anyone telling you different doesn't know what they are talking about.

Allan Griego
0 votes Thank Flag Link Thu Apr 25, 2013
Allan - I'm able to approve FHA loans (3.5% down) with credit scores as low as 580! I would love to help you with your clients.
K.C. Jones
Flag Fri Apr 26, 2013

It is definitely possible. Owner finance homes typically don't look at your credit score. I specialize in these types of properties. I'm more than happy to give you more information on how these types of purchases work.

Justin Poses
Premier Texas Realty
0 votes Thank Flag Link Thu Apr 25, 2013
Hi Justin, Don't owner finance homes require a larger down payment? Thanks!
Flag Thu Apr 25, 2013
Currently I've been given 640 as a minimum score. Lenders use a different algorythm than just the raw score you have access to. Porbably small changes to your credit position would likely make. Decent improvement. I'd suggest making contact with a Realtor who can then assist with getting a trusted lender involved (likely free). Best wishes!
0 votes Thank Flag Link Thu Apr 25, 2013
Hi Kathy, the answer is likely "yes", but this will depend upon a host of other issues, such as your debt to income ratio, employment history, etc. The FHA recommends a 580+ credit score to qualify for a loan (see article: http://www.fha.com/fha_article.cfm?id=200 ). There is also another option - seller financing. Although I have good credit, I have been able to buy property in the past with seller financing without the seller even checking my credit at all. Best Wishes,
0 votes Thank Flag Link Thu Apr 25, 2013
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