Home Buying in Atlanta>Question Details

Robert, Home Buyer in Memphis, TN

Ok, my credit score is a 547. How difficult would it be for me to get approved for a $30000 home loan?

Asked by Robert, Memphis, TN Sat Jan 2, 2010

I have a down payment. I have paid off all collections and debts, but some off the companies have not updated it et on my report. I'm currently working with Lexington Law to clean up my report. I've already found a home that I'm really interested in, but I dont know how much longer its going to be on the market?

Help the community by answering this question:


Get with a reputable lender or have Lexington recommend one and get a rapid rescore. Getting approval will need to come from a lender.

0 votes Thank Flag Link Wed Jan 6, 2010

You are going to need a minimum of a 580 credit score, “IF” you are putting 20% down. You really need a minimum of a 620 credit score. You need to talk to a lender to to consult you on how to increase your credit scores. You also have a problem with the loan amount, there new legislation that makes loans with an APR of 6.63% or higher a “High Cost Loan Product”, therefore many lender have increase there minimum loan amount to $75,000 because smaller loan amounts have higher APR's.
0 votes Thank Flag Link Sun Jan 3, 2010
The lenders I work with can help with a rapid rescore or come up with a plan to improve your credit. In addition to your credit issue you may have other problems.
What is the price of the home? How much is your downpayment? What is your employment history? Does
the home need repairs? All of these may be further issues.
Many lenders to not lend under $25,000 and if they do the closing costsmay be substantial because of the high fixed costs.
If you have a very large down payment you could get a hard money loan but it will be very expensive.
I hope all of this has been food for thought. If you have other questions you can give me a call

"With You Every Step of the Way"
0 votes Thank Flag Link Sat Jan 2, 2010

A few lenders will go as low as 580 with the last 12 months clean.
You could try a rapid re-score and do a 90 day out rent to own.
Just be patient if you lose this house another one will come along when your credit
is higher.

Isabel Elsesser, Realtor
0 votes Thank Flag Link Sat Jan 2, 2010
547 credit score is going to be a problem for any lender. Minimum requirements for FHA is 640. You'll need to spend time building your credit score. Speak to a qualified lender who can help you make the proper financial decisions that will increase your score. It's going to take you 6 months to do that at least. I hope I'm wrong but there is no miracle or immediate fixes on credit score improvements.
0 votes Thank Flag Link Sat Jan 2, 2010
Hello Robert,
I am with Coldwell Banker Wallace and Wallace in Oak Ridge, Tn right outside of Knoxville. We are affiliated with Monarch Mortgage, Andy Munsey is wonderful and he will be able to advise and/or help you. Call him at #865-805-9482, he works 24/7 and just tell him I referred you. I dont get a kickback or anything.(LOL) I just know he has done wonders working with some others with the same problem. You can call me or email if I can help with anything else. Have a Blessed Day.
Sherry Rowland, Affiliate Broker
0 votes Thank Flag Link Sat Jan 2, 2010
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