Can you get a mortgage with a credit score of 562 or 604?

Asked by Azjjhull, 85023 Fri May 6, 2011

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20
Randall Yates, Other Pro, Dallas, TX
Fri Sep 20, 2013
You can with a 604 score you can go FHA, at 562 your just under the 580 minimum score needed.
3 votes
My credit score is 601 and i have great income coming in and my husband has a credit score of 720 which is high but he's retired so his income is not as high we are selling our house and wanting to purchase a home in Las vegas we have $40.0000 down payment but no one will give us home lone what can we do....Thank you Paula
Flag Fri May 22, 2015
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Tue Oct 25, 2011
Good morning Azjjhull,

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.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm

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
1 vote
., , Phoenix, AZ
Fri May 6, 2011
I learned this was possible through a conversation I had a few days ago with Pam Wall, Home Mortgage Consultant at Wells Fargo, regarding some of their new programs. She can be reached at 602-568-4990 or pamela.wall@wellsfargo.com.

Linda Styers, Reator
602-451-0020
1 vote
Paul Welden, Agent, Scottsdale, AZ
Fri May 6, 2011
Yes, but you'll usually need a larger than normal down payment. Also loan approvals are not entirely based on credit score. Lenders will look at, among other things, your debt to income ratio, employment, cash reserves, credit history, etc.
1 vote
cortezdebbie…, Home Buyer, Collinsville, TX
Wed Oct 9, 2013
You an also try another option which is credit repair. I did this and saw my scores increase a lot. I used a company called CreditMend247.com. They seem to know what they are doing.
0 votes
Bianca Benne…, Agent, Glendale, AZ
Mon Jun 17, 2013
Contact Donna Avram and ask for recomandations: 602-690-7337
0 votes
John Anderson, , Los Altos, CA
Tue Jun 11, 2013
Which is it 562 or 604? Big difference.. The lender I use can get you done with around 580 with 3.5% down..
0 votes
Jim Passamon…, , Glendale, AZ
Tue Jun 11, 2013
We do offer an FHA program with 3.5% down with FICO down to 580.. With 10% down we can go to 520.. There are some extra hoops but I would be happy to see what you have and determine what can be done.
0 votes
I need a loan in the amount of $30K, but have no collateral, my credit score is 604, but do have a job with a 60K salary. Can you, or do you know of someone who can help? Thank you!
Flag Thu Apr 3, 2014
Can you do a va loan with a credit score of 520,604,597?
Flag Wed Aug 7, 2013
Christina Ha…, Mortgage Broker Or Lender, Morristown, TN
Tue Jun 11, 2013
Unfortunately, you will require a 620 and or above. If you would like free help to boost his credit please visit my blog here on Trulia, or go to our website.

Best of Luck & Have a great day;

Christina Solorzano;
CEO & SR Credit & Mortgage Consultant of
Everlasting Credit Repair
Making home ownership more than a dream...
Retired Mortgage Banker
http://www.everlastingcredit.com
0 votes
Andy Carlton, Agent, Nashville, TN
Tue Nov 1, 2011
In short, yes. However, as the market is consistently a moving target, your best option is to consult a reputable, experienced lender. As with all things, it evens itself out. Some programs may accept lower credit scores while requiring more skin in the game with everything else, i.e., Higher amounts of money down, stricter job verification requirements, etc.
0 votes
Abu Musa, Agent, New York, NY
Mon Oct 31, 2011
You may talk to a mortgage banker to get better idea and options. Good luck.
0 votes
Investor X, , Gilbert, AZ
Fri Oct 28, 2011
You can get a mortgage. But you will get slammed with a huge interest rate. Also lots of added fees. Why not chill out for 1 year and pay bills on time. That FICO should jump from 562-604 to 640-660. Stop the shopping. Pay cash!
0 votes
Jim Passamon…, , Glendale, AZ
Mon May 9, 2011
Yes! We have an FHA Overaly program that can go to 580. We can go lower to 520 but there are more hoops to jump. Let me know if I can be of assistance. Jim Passamonte, Sr. Loan Originator, Primary Residential Mortgage 602-909-0862 Jpassamonte@primeres.com
0 votes
John Baldovin, Agent, Avondale, AZ
Fri May 6, 2011
Yes, there are lenders that will do a lower FICO, but the down payment is generally around 10% on FHA instead of the 3.5% but usually can get the seller to pay all or most of closing costs, give me a call and we can discuss your personal issues. Thanks
0 votes
Leo Zuniga, Mortgage Broker Or Lender, Peoria, AZ
Fri May 6, 2011
Azjjhull,

With those fico scores - you're only option would be with private financing. Private financiers require 35-40% down in all cases along with expensive rates. If this isn't a readily available cash position for you, then I'd suggest that you improve the credit score to a 620-640 range so that you can be approved. I offer a FREE credit report and FREE credit counseling in order to get my clients into a buying position with traditional financing. You will have a large range of products/investors once you're in that credit range.
Web Reference:  http://www.loansbyleo.com
0 votes
Andrew Ostra…, Agent, Phoenix, AZ
Fri May 6, 2011
Hey Azjjhull :)

Absolutely! In fact, I work with a lender who specializes in helping renters move into ownership so you can start getting that ever important tax deduction. Understand, your credit score affects the loan programs you qualify for and the rates you are offered. Contact me (in 85023) and I'll get you rolling.
0 votes
James Wehner, Agent, Scottsdale, AZ
Fri May 6, 2011
Yes, there are options for anyone with any credit score. Some may have to put more down or have a higher interest rate depending on their credentials.

There are seller carry homes, private lenders, etc, which may be some alternative options for you.

Best of luck!
Web Reference:  http://www.jameswehner.com
0 votes
Michael P Br…, , Phoenix, AZ
Fri May 6, 2011
A lender I can recommend is here: http://repowernetwork.com
0 votes
Michael P Br…, , Phoenix, AZ
Fri May 6, 2011
You might be able to! You live in my zipcode. I can have a lender contact you!
0 votes
Doug McVinua, Agent, Gilbert, AZ
Fri May 6, 2011
The 562 will be more of a challenge, the 604 we can find a lender for you.

Can we raise the 562, some have the ability to correct and re score to get that one in the loan also.

It should be doable with the right lender if you are willing.
Web Reference:  http://www.McVinua.com
0 votes
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