Home Buying in Houston>Question Details

tmjo31, Renter in Houston, TX

can I purchase a home with a 590 score?

Asked by tmjo31, Houston, TX Wed Jul 24, 2013

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28
See if you can get approved now before credit repair, which just leaves disputes all over your report. A 590 is good enough to get an FHA loan, 580 is the FHA minimum score.. Visit our site and we will help get you in the hands of the right lender and agent in Houston.
1 vote Thank Flag Link Thu Oct 31, 2013
Good afternoon tmjo31,

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.
http://www.consumer-action.org/

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.
http://www.consumer.ftc.gov/articles/0058-credit-repair-how-…

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 Thu Jul 25, 2013
Good advice. Thanks!
Flag Fri Jul 26, 2013
My branch's "niche" is 580+ credit...we close these loans all the time!
Our underwriting team fights for our borrowers; manual underwriting isn't unusual for us at all.

Everyone's story is different - we see credit take a dive due to medical, divorce, death, etc. We'll take the time to look at your situation & we'll do everything in our power to close your loan.

Also...I think you'll be very happy with our rates!

Give me a call! :)

K.C. Jones
Gold Financial
kjones@goldfinancial.com
214-432-0486

1300 W. Walnut Hill Lane (Suite 257) Irving, TX 75038
Branch NMLS: 1092967 Company NMLS: 129122
1 vote Thank Flag Link Wed Jul 24, 2013
What are you seeing as conditions & limitations? 12 months of rental history? 4 trade lines...with alternate credit being acceptable? No major open collections? These are requirements of folks with good credit too.
Flag Fri Jul 26, 2013
I took a look at the product ... thanks for sending me the information. It's an excellent program for those who can take advantage of it. But as I surmised, there are considerable conditions and limitations ... there should be, given the risk you're taking. My contention remains that only those individuals with mitigating circumstances could qualify ... it's what I've been saying all along. No lender will extend credit to someone who has a track record of financial irresponsibility ... nor should they; it's what put the industry in the tank a few years back.
Flag Thu Jul 25, 2013
Yes, you may be able to purchase a home with a 590 credit score. If you are still considering buying a home, I do have lenders that will work with credit score lower than 530. However you will need to meet other requirements. Please call me if you would like more information.

Diana Walton
Diana Walton Properties
Champion Real Estate Group
281.923.1118
0 votes Thank Flag Link Mon Jan 6, 2014
debt to income ratio, steady income and job history not mentioned in question. interest rates are risk adjusted so your rate is way higher and the scrutiny required with years of tax records, proof of employment, make it highly unlikely to get approved
0 votes Thank Flag Link Mon Jan 6, 2014
Creditmend247.com

This is the solution for any individual looking to improve their credit score to get approved on a mortgage or a loan. They have over a 95% success rate with their clientele and are there to serve the customer. Give them a call at 682-200-8800 or visit their site at http://www.creditmend247.com
0 votes Thank Flag Link Mon Nov 4, 2013
Yes, it is possible to purchase a home with a 590 credit score. You should contact more than one lender in order to find one that will work with you, including assisting you with improving your credit score. They will tell you if you qualify or what you will need to do to get qualified and the approximate amount of time and work necessary to get you to a point that they will approve you for a loan.

Once you get a preapproval for a home loan, contact a REALTOR(r) and start shopping for you new home. There are lots of reputable credit repair companies that will assist you with fixing your credit so shop around on the Internet and talk with a few to find one that you are comfortable working with.
0 votes Thank Flag Link Sun Oct 20, 2013
The odds are probably against you with a score that low, but it's possible. I would contact a local lender and talk with them about your situation. Good luck!
0 votes Thank Flag Link Sun Oct 20, 2013
Hello,

i am a Realtor at Better Homes and Gardens Gary Greene and our office has a new program, that helps people with low credit to get into a home. If you are interested and for more information you can contact me at.

Andrea Bautista
Cell 832-646-4742
E-Mail andrea.bautista@garygreene.com
0 votes Thank Flag Link Mon Jul 29, 2013
We have lenders that will work with a 580 credit score
0 votes Thank Flag Link Fri Jul 26, 2013
Yes, first talk to your banker or mortgage broker. Work with them to improve your credit score and develop a plan.
0 votes Thank Flag Link Thu Jul 25, 2013
Tmjo31,

As has been said by my colleagues, YES you can purchase a home with a 590 credit score. However here are some questions.

Is the 590 your mid score? The mid score of all three bureaus is what lenders use to qualify you. So if 590 is your highest score, it will not be considered in your loan application.

Have you looked into what a loan with this score will cost you? In the short and long term there are few positives. The bank's underwriters will use more scrutiny when processing you paperwork, may require more from you financially, and you may miss out on assistance programs that could give you up to $30K towards your down payment and reductions in you mortgage payment.

Have you looked at you credit report to see what is causing you to have a 590 score? There may be inaccurate information, old accounts, or other factors affecting you credit. There are 5 key factors to credit and with some work you could have a much better credit score and qualify for a much more affordable loan.

At NewHomePrograms.com we have a Credit Enhancement Program, that focuses on bringing our clients scores up, so they can obtain an affordable mortgage. It is FREE and comes with a FREE copy of all three of your credit reports. 590 is not far from the goal for my clients. Also we are specialist when it comes to working with government, bank, and builder programs, that will assist you financially in the home buying process. Again some offer up to $30, 000 towards your down payment. I would be glad to discuss the process with you in greater detail. Send me an email or give me a call. Home ownership is a very achievable goal. All you need is the right partner and a little faith. God will provide the rest. (1 Corinthians 3:7)

God bless

Brandon Jenkins
NewHomePrograms.com
832-377-1721
Brandon.Jenkins@NewHomePrograms.com
0 votes Thank Flag Link Wed Jul 24, 2013
Yes you can......


But how much are you willing to pay for it? Can you afford to pay your bills including your mortgage with high interest? Do the math numbers don't lies?

Muna Farah
Coldwell Banker United, REALTORS
5111 Bellaire Blvd, Bellaire, Texas 77401
832-518-9288
713-349-9700 Office
713-349-9912 Fax
Mfarah@cbunited.com
0 votes Thank Flag Link Wed Jul 24, 2013
Hey Gang ... stop and think for a minute.

The days of "fog a mirror, get a mortgage" are thankfully behind us ... if anything, lenders have "overcompensated." Bottom line: barring mitigating circumstances as outlined below, anyone who has demonstrated financial irresponsibility over the years to the point of a 590 FICO score is likely not going to be approved for a loan. If they can't pay their bills as it stands, how are they going to afford a mortgage? Sure, there are unavoidable circumstances ... illness, injury, layoff, divorce ... but if the records show that their credit was subpar to begin with, it's not going to matter. It's even worse if there's a consistent employment history ... working and still not watching the money demonstrates a total lack of financial discipline.

And just where is such a person going to come up with additional cash that a lender might require to even remotely consider his/her application? All this talk about loan approval with a lousy credit score comes with a bunch of requirements that most cannot meet ... not to mention a higher interest rate.

Lenders are paid as we are ... and just as Realtors won't waste everyone's time (including our own) working with unqualified individuals, so be it with mortgage brokers. My lenders won't touch such applicants ... and they're not about to turn away business.

We're doing these potential buyers an injustice by offering them false hope. What we should be telling them is to clean things up and come back when their credit situation is at least respectable.

Al Geffon
(713) 213-6350
al@geffon.net
Web Reference: http://www.har.com/algeffon
0 votes Thank Flag Link Wed Jul 24, 2013
That's why I qualified my answer ... there are extenuating circumstances in some cases, but the vast majority of individuals with sub-600 credit scores can't qualify. Sure, consider each case ... but don't hold out hope to those whose finances are in the tank.
Flag Wed Jul 24, 2013
Ever try thinking outside the box? As you stated, there may be unavoidable circumstances that have created such a scenario where a client's score is low. Why not look at each individual as an individual before you say no.
Flag Wed Jul 24, 2013
Yes - however you will be at the lender's mercy in terms of how much you will be charged in interest.

You would be wise to put off purchasing a home, and work on improving your score into the 700's - where you would be able to shop favorable rates as opposed to having to "take" whatever is offered to you.

Hope that helps!
0 votes Thank Flag Link Wed Jul 24, 2013
Yes! We're able to finance FHA (3.5% down) loans with middle credit scores as low as 580. Give me a call. :)

K.C. Jones
Gold Financial
kjones@goldfinancial.com
214-432-0486

Al...I'm messaging you next! Looking forward to working with you!
0 votes Thank Flag Link Wed Jul 24, 2013
I am curious to know if the two of you were able to close some deals with these kinds of issues at hand?
Flag Fri Jan 17, 2014
I just emailed you...can't wait to close our first file together! :)
Flag Wed Jul 24, 2013
Got your message ... what kind of interest rates are we looking at? What other criteria must be met? Please e-mail me the information about the product ... al@geffon.net ... thanks. Al
Flag Wed Jul 24, 2013
Morning
The answer to your question is yes you can finance a home with a credit score of 590. Century 21 Olympian has several loan officers that can finance you with your credit score being 590 please give me a call at 832-398-1757 to discuss the details further thanks
Tewana Wright
Century 21 Olympian
0 votes Thank Flag Link Wed Jul 24, 2013
forgot to mention cash reserves and proof of source of those reserves.
0 votes Thank Flag Link Wed Jul 24, 2013
debt to income ratio, steady income and job history not mentioned in question. interest rates are risk adjusted so your rate is way higher and the scrutiny required with years of tax records, proof of employment, make it highly unlikely to get approved.
0 votes Thank Flag Link Wed Jul 24, 2013
The answer is, YES YOU CAN!!!! As stated earlier it will cost you more. However, the most important issues to address are job security, down payment, and how much can you afford to pay. You can contact me directly at 877-258-8462

Roland J. Northland
GLO Investments LLC
877-258-8462
0 votes Thank Flag Link Wed Jul 24, 2013
Greetings,

There is a new finance program out there for purchasers with bad credit. Contact me for more information. You may qualify.


Good Luck!

Deetholman@gmail.com
0 votes Thank Flag Link Wed Jul 24, 2013
If anyone can provide the names of lenders who will finance a property 100% (presumably USDA), approve a 3.5% down FHA loan, or acquire down payment assistance, to an individual with a 590 FICO score, please contact me. I can probably write five transactions today.
Web Reference: http://www.har.com/algeffon
0 votes Thank Flag Link Wed Jul 24, 2013
Yes, but it will come with more closing cost, higher interest rate and you will have to provide every financial/tax document you own. And you still might not get the loan!

Key is to speak to a mortgage company and let them review the details of your situation. You want to be financially ready and not just "barely" be able to purchase. FHA and other programs can help, but if your not financially ready, you cannot purchase. Lenders are tough on 1st time buyers as financing requirements have tightened since 2008.

These lenders on my web site can assist you if you want to give them a call. http://www.markknowshouston.com/res_list.php?cat=12282&c…

Mark McNitt
m 832-567-4357
Bernstein Realty, Inc.
0 votes Thank Flag Link Wed Jul 24, 2013
Yes, it is possible. Shop around for a lender for a FHA loan. There are other things that go along with credit score, like recent credit history, employment stability, salary, debts, reasons for the credit situation that you are in, etc. Some home purchases do not require down payments and certain costs can sometimes be rolled into a loan.

Check with FHA.com for loan requirements and for approved lenders to check with.

Also, check this website out for assistance programs that you may qualify for.

http://www.txhomeprograms.org/

If you need any more information or assistance, please send me an email at hspersky@gmail.com and I will be happy to assist you.
0 votes Thank Flag Link Wed Jul 24, 2013
Sure you can, just use cash.
0 votes Thank Flag Link Wed Jul 24, 2013
Perhaps, but unlikely unless you have a significant amount of cash (generally, a larger down payment is required when questionable credit is involved), are willing to pay a higher interest rate, and have some mitigating circumstances as to why your score is so low (medical, loss of job, etc.). You must also demonstrate that you're making a genuine effort to clean up your credit. Your more recent activity should not include late payments, charge-offs, or other negative entries. Even if you could be approved, the amount of the loan probably wouldn't buy you much of a home. I can state with certainty that any lender I work with would tell you to wait, work on your credit, and reconsider the purchase when you're in a more stable financial condition. On a scale of 1-10, you're a 2 at best. Good luck!

Al Geffon
(713) 213-6350
al@geffon.net
Web Reference: http://www.har.com/algeffon
0 votes Thank Flag Link Wed Jul 24, 2013
Hello
I know a lender who can work that credit score! Send me an email or give me a call at (832)304-1847 pw@viphoustonrealty.com
0 votes Thank Flag Link Wed Jul 24, 2013
Go see a lender and ask them. Often the score you get is not the same as what they get. So stop guessing and wondering and go see a lender. Its fast and free.
0 votes Thank Flag Link Wed Jul 24, 2013
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