Dd, Both Buyer and Seller in Middletown, NJ

Is there anyone out there who will even entertain a mortgage with a bad credit score??

Asked by Dd, Middletown, NJ Tue Feb 2, 2010

Help the community by answering this question:


How bad is "bad" ??
Some people get very upset if their score slips below 750. Others are content with 680.
Where I work, at Bank of America Home Loans, we can often approve loans with credit scores of 600 or even into the 500s, if there are strong compensating factors.
On the other hand, if your score is below 620 you probably cannot get a loan with most brokers or independent mortgage companies because for the most part they can't be sold on the secondary market (the big banks who ultimately will send you your bills)
Credit score aside, you could be eliminated from getting a mortgage if you had a recent bankruptcy or foreclosure or if you currently have a mortgage and made a late payment within the last 12 months.
Ruth Bonpace
201 741-5269
0 votes Thank Flag Link Sat Feb 6, 2010

It depends on how bad your credit is and what is showing on your report.

There are a number of free and easy tips that are very basic and can get your score up.

Here is a very simple blog I wrote on the topic: http://www.trulia.com/blog/al_akerman/2010/01/can_i_get_a_mo…

If your score is 620 or above, most banks would be willing to give you an FHA loan with very good rates and terms.

I hope this was helpful, but feel free to call me at 908-415-3958 to discuss.

Good luck!
0 votes Thank Flag Link Tue Feb 2, 2010
Hi DD,
The mortgage industry is cautious on who they give loans to nowadays. My best advice would be to speak with a reputable lender who will pull your credit, review your income, review your debt and be able to answer your question based on the facts.

If you need assistance with locating a lender please feel free to contact me.

Heather Daccurso
Remax Realty 9
Office: 732-905-8700
Cell: 732-580-5309
Email: heather@heatherdaccurso.com
0 votes Thank Flag Link Tue Feb 2, 2010

Sometime's it more than just the poor credit scores (FICO's).

It's true they play a big part in getting a loan, but employment, debt to income ratio, downpayment, etc. also can play a part in the approval process.

You can always pull your credit report and see what the "hits" are and from "whom". Even if there's just one or two that are debatable, or should have dropped off, by pursuing the companies by appeals or letter can get them removed. It can improve your FICO's even by a few points.

You can also check with your County to see if they provide any type of First Time Home Buyer programs.

Best of luck!
0 votes Thank Flag Link Tue Feb 2, 2010
That depends on the credit score. A lease-option might is another option for buyers with very low scores.
0 votes Thank Flag Link Tue Feb 2, 2010
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