Home Buying in 30506>Question Details

bme2235, Home Buyer in Jefferson, GA

credit score 603 can i be approved for a home loan?

Asked by bme2235, Jefferson, GA Wed Jun 6, 2012

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7
Yes. FHA really isn't credit score driven, it's the Banks and Lenders that set those score requirements. There are a few lenders that go down to 580 with FHA, I personally have closed on several homes with clients around and under 600.

Have you tried The Lenders Network?I recommend all my clients that have credit issues to check with The Lenders Network, check them out. If anyone can get you approved they can!
1 vote Thank Flag Link Sun Aug 9, 2015
I tryed the lenders network but at a 602 theres nothing they cat do till i pay $600 to get my credit fixed. And it needs to be atleast a 640.
Flag Wed Aug 26, 2015
I would contact a local lender to see what loan options are out there for you. Best of luck
0 votes Thank Flag Link Sun Aug 9, 2015
Good afternoon bme2235,

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!
0 votes Thank Flag Link Wed Jul 17, 2013
Your credit score will be the very first thing that the lender will look at. And it plays a huge part in whether or not you will get a loan. Where you are sitting at right now, I can tell you that the odds are against you. However the only way to find out would be to go to your lender- any bank will do... and see if you even pre-qualify.

If you do not there are ways you can take this score up a lot if you just pay off old debts, and keep at least 2 accounts in good standing, pay credit bills on time, etc etc.
0 votes Thank Flag Link Wed Jul 17, 2013
Simply put yes and no. Your credit score does not necessarily determine if you eligible for a home loan. My personal recommendation would be to contact a Lender/Mortgage Loan Originator (same thing more or less) and see if you are pre-qualified. Generally if the answer is yes (which in this case of your current credit score rating I would say you would be pre-qualed) any and all home loans (up to a max cash amount depending on the bank and your credit history report) should be available unto you. Hope this helps.
0 votes Thank Flag Link Wed Jul 17, 2013
For an FHA mortgage, most lenders require a 640+ credit score. Prospect Mortgage is one of the few direct lenders that also offers an FHA 580-639 FICO loan program. Credit profile is a mojor factor in a mortgage approval.

Getting Pre-Qualified is the only way for you to find out your options.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle Renovation | VA | USDA | GA Dream | Jumbo Financing
0 votes Thank Flag Link Fri Jun 8, 2012
There are some lenders that may approve you, but possibly with a higher interest rate. If you want to raise your score to get a better interest rate visit the site below to decide which product may be best for you.
0 votes Thank Flag Link Wed Jun 6, 2012
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