Home Buying in Kenosha>Question Details

aschulze, Home Buyer in Kenosha, WI

579 credit score - is it possible qualify for a home loan in Kenosha WI?

Asked by aschulze, Kenosha, WI Tue May 21, 2013

I am looking to purchase a home in the Kenosha area, WI. I have a decent, stable income, but a poor credit score of 579. Unpaid/paid very late medical debt is what is haunting me. I do not know where to start as far as searching for home loan options. Are there even financing options available for someone in my situation?

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Thanks for making an inquiry about the ability to purchase a home by getting a loan with a credit score of 579. I contacted 7 Lenders and asked the same question and the summary of response was as follows:

No one offers a home loan with a 579 credit score. One Lender responded with FHA requires a 580 however he did not know anyone offering an FHA home loan for less than a 600-620 credit score.

Conventional loans require a 660 or higher.

USDA is 600 or higher.

VA is 600 or higher.

WHEDA loans typically require 660 or higher.

I was also told the only way to "get it done" would be with a Bank that would portfolio the loan and not have PMI or any securitization.

Your best bet would be to contact a Lender who can walk you through the process of "cleaning up your credit" ... Most lenders will work with you and in no time you will be on your way to home ownership.

Hope this was helpful.

If I can help you once your credit score is improved, please don't hesitate to contact me. Thanks.

1 vote Thank Flag Link Tue May 21, 2013
I work with a lot of people who have less than perfect credit, seems like you can get approved now. I tell all my clients that need a pre approval to visit The Lenders Network, I have seen loan approvals from them even with scores under a 600. So if anyone can get you a loan they can.

Good Luck!
4 votes Thank Flag Link Sat Aug 10, 2013
We are able to consider financing a home down to a 580 middle credit score. Please contact me if you would like to discuss your situation further.

Mandy Fritsche, Prospect Mortgage, Mortgage Loan Officer, NMLS# 557211
262-327-5700 Cell, 877-868-9198 Fax, mandy.fritsche@prospectmtg.com
1 vote Thank Flag Link Thu May 30, 2013
Good evening aschulze,

We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.

It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
1 vote Thank Flag Link Tue May 21, 2013
Probably not until you do a credit repair. The best bet would be to cal a bank or mortgage company and ask them to help you. Ask them what you need to do to qualify for an FHA loan.
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0 votes Thank Flag Link Tue May 21, 2013
You may want to start by talking to a lender....many have suggestions to help you bring your credit score up....within a few months,you may be able to purchase a hone.outright.
0 votes Thank Flag Link Tue May 21, 2013
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