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Bellesheiml, Home Buyer in Midlothian, VA

If I have bad credit (560) and have 40,000 to buy a house how would I go about trying to get a mortgage. First time buyer.

Asked by Bellesheiml, Midlothian, VA Wed Jun 27, 2012

I only have 40,000 to put as down payment, is it possible to find someone to give a mortgage for a house around the 200,000 mark?

Help the community by answering this question:


The credit score by itself is not all the lender will look at, your income, how you ended up with the score you have and much more. You may be able to improve your credit score before attempting to
buy. Sometimes it is better to work on repairing the credit score, save some additional money for a down payment and then look for the right property ---- first you need to work with a good loan officer, lender to assist you, and then you should not search for a home without the assistance of an experienced Realtor who will know what you can afford in your areas of interest in your price range, for you to be comfortable with your monthly payments.....

Make sure you get the input of the right professionals before making any decision.
Good Luck to you...

Sincerely yours,
Edith YourRealtor4Life & Chicago and Northern Illinois Expert
Working always in the very BEST interest of her clients, Buyers, Sellers and Investors alike....
Covering for @Properties the city of Chicago, all N and NW suburbs, the fine homes on the
North Shore, and many of the W and SW suburbs, and with her trusted Partner Agents all of
the US and worldwide properties. Edith speaks French, German, some Spanish and other.....
@Properties, 30 Green Bay Rd, Winnetka, Illinois 60093 ---- or Check out my website at htttp://
get to know me better and learn about my experience, expertise, services available and letters of recommendation of former clients..... Also you can sign up on my site to search for properties in my expanded service area. HAVE THE MOST WONDERFUL DAY :)
0 votes Thank Flag Link Fri Jun 29, 2012
You may want to use some of that $40k to patch up your credit.

As a lender my first order of business would be to review your credit report and see why your scores are where they are. From there I can show you what needs to be done to get your scores up in what amount of time.

I would be patient and get your credit up rather than settle for what you can get under the circumstances.

You need to become familiar with how credit works and you can get some tips here:…

Next, you need know what to expect from a proper Pre-Approval and you read more about that here:…

For more questions or details please contact me at your convenience.

Kind regards,

Elliott R. Oliva
Mortgage Banker | nmls#353884
Stearns Lending, Inc.
202.681.1636 direct
"Se Habla Espanol"
0 votes Thank Flag Link Thu Jun 28, 2012
Your very first step should be contacting a mortgage professional so they can assess your situation and guide you accordingly.

0 votes Thank Flag Link Thu Jun 28, 2012
Well it all depends on why your credit is so low. I can get you a loan with that credit score as long as you put 10% down but there are other restrictions as well. Plus the loan amount will depend on your current income and debt to income ratios. Give me a call and I will get you in touch with an expert lender in this field. If he cannot get it done then no one can.

Otherwise you can buy a 40K home all cash!

Lee Newcomb - 928-4475
0 votes Thank Flag Link Thu Jun 28, 2012
Possible, at a high rate, for the risk you represent. Maybe the low score is due to a judgement. This can become a lien on real property and a lender will not want to jeopardize their own lien position by chancing that the judgement will supercede theirs. Pay off the judgement, remove the excess risk to a lender. Reveal why your score is so low and maybe ideas will be posted here. Better yet, talk to a lender or loan broker. Of course, a direct lender will only be able to answer for their own bank. Check with Weichert Financial, with access to many programs not just one bank's.
0 votes Thank Flag Link Thu Jun 28, 2012
Bankruptcies, foreclosures, judgements and a credit history that shows lack of payment on time will keep you from getting a loan. 560 is very low. If you were my client I would be assisting you with getting that score up first. If you are willing to work to get your rating up, go to a lender (have a few I would recommend) and they will tell you what you need to do. They will be more willing to help you when they see you help yourself.

Misty Mount
Keller Williams
0 votes Thank Flag Link Thu Jun 28, 2012
Your lower credit score might cost you in higher interest rate.
Of course, the higher the interest rate the lower your purchasing power as more of your monthly mortgage payment will be used to cover the interest expense and less to repay the principal.

I suggest that you consult with the lender on ways to improve your credit and perhaps to bring it up above 600 and closer to 650 - if it possible to remove or correct items that caused your lower credit score.

Good Luck
0 votes Thank Flag Link Wed Jun 27, 2012
Below is the contact information to a lender I refer all my first time homebuyers to. They specialize in helping first time homebuyers and have an awesome repetation, if they can't get you approved, they will give advise on getting your score up. And if you need a Realtor that specializes in First time home buyers, you have reached me. I will leave my information below the lenders. If you already have a Realtor please disregard.

Mary N. White
TowneBank Mortgage - Your Hometown Mortgage Lender
NMLS ID #239330
Mortgage Loan Consultant
4413 Cox Road
Glen Allen, VA 23060
Office Phone: 804-521-8937
Cell Phone: 804-938-2335
Fax: 804-673-2503

Georgia Pulliam, Associate Broker
RE/MAX Commonwealth
6501 Mechanicsville Turnpike
Mechanicsville, VA 23111
(804) 852-4883 (cell)
(804) 423-2398 (efax)
0 votes Thank Flag Link Wed Jun 27, 2012
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