Credit Score in 95816>Question Details

Sonia B, Home Buyer in Sacramento, CA

I am a young physician with a credit score of 587 - hoping to buy a condo in 3 months. Any thoughts on odds of getting a loan?

Asked by Sonia B, Sacramento, CA Wed Feb 1, 2012

Also, what banks would lend to someone with a credit score of 600?

Help the community by answering this question:


You can get an FHA loan with under a 600 middle score with some lending institutions but not many. I would recommend finding a broker or service to help you locate a reputable lender that can approve your loan at a decent rate. I have client's who have got approved and received a good rate at The Lenders Network with FHA and VA home loans. If anyone can find you a loan they can!
8 votes Thank Flag Link Sun Jul 14, 2013
Thank you every for all of the helpful advice! I realize I have a rough road ahead, but I remain optimistic. I would like to provide some more information about my situation. Similar to the plastic surgeon cited above, I became so consumed by getting established in a new training position last year that I defaulted a car payment and student loan payments for a few months before getting caught up/putting my med school loans into forbearance - which basically killed my credit score (which was previously in the 730-750 range). I am going to be a Dermatology resident from 2012-2015, after which I will be finished with training and able to open or join a practice, so I do expect my financial situation to dramatically improve in the upcoming years. I look forward to further correspondence with you and welcome any further insight and feedback!
3 votes Thank Flag Link Thu Feb 2, 2012
Hi Sonia, I realize it's been a year since you posted but if I were in your shoes I would focus on paying down your higher interest rate debt and ensure you pay your bills on time every month. This will allow your credit score to increase so you will be in a better position to buy a home. Also, will you stay in Sacramento after your residency? If the answer is no, it may be better to rent. Here is a video that you may find useful:
Flag Mon Jan 27, 2014
I would work with a lender to get your credit cleaned up for a future loan. There are also great programs available for physicians in Sacramento as well. Hopefully a lender can help you get things cleared up and you can get a loan soon. There are a few great condos available in the Central City right now but they go quick! If you need a lender to help you out give Sean Krause at Big Valley Mortgage a call 916-205-9294. He will happily talk you through some steps to get you approved! Good luck.
Flag Fri Sep 27, 2013
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.

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.

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
2 votes Thank Flag Link Mon Apr 16, 2012
Hello Sonia, yes you may qualify for FHA from a minimum 500 fico score. Traditionally FHA requires 10% down with fico scores between 500-579 and 3.5% from a minimum 580 fico score up to 417k. Conventional financing requires a minimum 620 fico score to consider the 3% down or 5% down with no MI, (Lender paid MI) or up to 20% down with NO MI.

You may consider the 3%-5% Sapphire Grant Down Payment assistance program which can cover your down payment and closing costs which you can close with minimal out of pocket expenses from a minimum 620 fico score up to 417k.

You may consider 5% down Jumbo with a minimum 720 fico score from 417k up to 1.5 million and 10% down from a minimum 680 fico score. If your fico score is lower then your fico scores can be raised within 3-4 days in most cases to qualify for programs, rates and terms as necessary.

These are full documented loans so you will need to gather documentation such as one month paystubs, two month bank statements, last two year tax returns, 1040's, 1099's, W2's and all schedules, copies of drivers license/ID and social security card for each applicant.

Your qualifications will be determined by your credit profile, debt to income ratios, fico scores, loan program and how much you want to invest into the down payment and closing costs.

Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
ALL Loan Programs Available
24+ Years Experience
BRE# 01140252
NMLS# 297251
1 vote Thank Flag Link Mon Sep 12, 2016
Hi Sonia,

You have to get to 620, but you also have three mos. I have seen it done a thousand times.
Give me a call if you would at 916-813-4003 on Tuesday between 10-11 am. I will run your credit for free, analyze it with you and we can put together your 3-mos plan to get you where you need to be. It can be done! I am very creative and I have seen it happen many times.
1 vote Thank Flag Link Mon Apr 16, 2012
Hi, Sonia
I have gone through this experience with a doctor before. A few years ago I worked with a plastic surgeon that was in the same situation. His credit had plunged because while trying to establish his career he defaulted on his school loans that went to judgement as well as some small personal debt. He paid off all of those judgements and stayed current on car loan/credit cards for almost a year. Within 10 to 12 months his credit was up to 700.

To answer your question: The odds of getting a loan? Possible but not probable unless some of those big things such as liens/judgements are taken care of.
You may be able to buy when your credit is somewhere in mid 600's but my question to you is... Does it make sense to wait just 6 months later to have immaculate credit and get the best financing terms? (When you see how much interest you pay over the life of the loan this will matter)

My advice is: If you have established yourself in your career and have the income, pull your free annual credit report and sit down with a knowledgeable loan officer that can tell you what his underwriter will need to see paid off. Pay those debts and stay current month to month.
One of the most knowledgeable loan officers I know is Dana Reed from Comstock Mortgage. He has helped many clients for me and he can be reached at 916-977-1251.

OK Sonia, hope this helped and don't be discouraged. It may seem like that uphill feeling but I'm sure you thought the same thing when you took the MCAT's and look where you are now. Anything is possible when you make an effort.

Alex Amaro
1 vote Thank Flag Link Wed Feb 1, 2012
Great advice. I was a law student in a similar position -- out of work for about 3-4 months. Our scores plunged all the way down into the high 400s. It's been about 5 months since we dug out of the "debt hole" and in those five months following this basic line of reasoning, my husband and I both raised our scores by almost 50 points. Focus on the "big bads" that hurt you worst -- do not look for new cards, do not apply for new loans, pay on time, every time, and pay down as much debt as possible at a time. Reduce your REVOLVING credit FIRST (this hurts you more than outstanding "debt" such as medical debts, other loans, etc). Once you've hit all your revolving debt hard and reduced it, move on to the outstanding debt. Avoid wasting your time paying "vulture debt" (anything older than 4 years is beyond the statute of limitations for collections in most states, and since it's uncollectable, it generally doesn't do you any additional harm and paying won't erase the bad mark.)
Flag Thu Jul 7, 2016
I can do seller finance (private loan - no bank involved) for you. I am more interested in your future credit history and ability to pay than your past.

My wife and I own a condo in the Foothill Farms area near Carmichael and Citrus Heights. (Manzanita and Madison ) We want to sell it. We basically gutted the interior. We repainted all surfaces, put in a new tub in the bathroom, new flooring, new tile in entry, kitchen and dining, new carpet in living room and bedrooms, new fence on the patio. new dishwasher, new sink, new fixtures, new kitchen cabinet doors. All this, for less than you could rent one of these 2 bedroom condos. We expect to have it ready to move into by the end of this month.

The HOA has a pool for you to enjoy.
1 vote Thank Flag Link Wed Feb 1, 2012
Jim Walker, Real Estate Pro in Carmichael, CA
Sonia B, the realtors on this site has done a great job of pointing you in the right direction. Just one other thing that I would like to add: There could be a few simple, minor actions that you could take regarding the accounts on your credit report to increase your score in a very short period of time. When you sit down with a lender he/she will give you some very specific action to take right away. In 3 months you could be well on your way to condo ownership...Good Luck.
1 vote Thank Flag Link Wed Feb 1, 2012
1st of all congratulations on making the choice of home ownership. Our site at can be of assistance in researching available condominiums.

I have several preferred lenders who will work with you to get your scores up and get you into a great loan program. One of the obstacles in condominium financing right now is many of the desireable complexes do not qualify for FHA or Conventional financing due to a myriad of reasons. In those cases, I would recommend looking for Homepath eligible condos or HUD owned condominiums.

I would recommend you first talk to a lender (feel free to email me if you need a few contacts) and then work with a REALTOR who has experience and knowledge of the condominium market, my recommendation woulod be Darlene Willard who's knowledge of condominiums is incredible (primarily the reason she services our clients from

best wishes in your home search

Bruce Slaton
1 vote Thank Flag Link Wed Feb 1, 2012
You are probably best off speaking with a mortgage broker who can offer many different loan programs. Typically a score of 620 or higher will get you qualified for a loan. I do know a broker who claims that he has a program available for scores down to 580. Though even he will be the first to tell you that it is a tough loan to get. If you'd like further information give me a call or shoot me an email.

Morgan Larson
1 vote Thank Flag Link Wed Feb 1, 2012
Sonia B, I would be very surprised if you could not obtain financing as long as you have the funds to purchase the property. Lenders LOVE the medical field. Because they know you most likely will increase your income greatly over-time and won't be un-employed. Choose a lender you feel will best work with you,and make sure they are reputable and knowledgeable.

Congratulations and good luck,

1 vote Thank Flag Link Wed Feb 1, 2012
These days, you really need to get that credit score up to a minimum of 620 to be able to get a home loan. Most mortgage advisors can run your credit for you and then help you figure out what moves will be most impactful in raising your score 40 points or more. I am not sure you can get there in 3 months, but you might as well start now. It all depends on what got you down to a 587 score in the first place.

Best Wishes,
Julie Thall
1 vote Thank Flag Link Wed Feb 1, 2012
Licensned in 43 states not just CA, I work for a direct lender in the mortgage industry who offers conventional, FHA VA, and USDA loans. The best part is unlike lendingnetwork we keep your info private not broker it out and we go below 580. Are lowest score we accept for government loans are 550 when most lenders require a 620 and brokers a 580. You have to have two years of income with a score over 550 with bankruptcies discharge date 2 years and over. We have basic guidelines and a pretty easy process. Feel free to text me or call me anytime up to 10:00pm Eastern with any questions.
Brian Young 214-797-3479
0 votes Thank Flag Link Mon Dec 28, 2015
The FHA requires a 580 or higher credit score to get approved for an FHA Loan. They got us approved with a 600 score.. Good luck!
0 votes Thank Flag Link Wed Oct 14, 2015
Megan, this question is 3 and a half years old. Why did you bother to revive it? The op- Sonia- has surely moved on.
Flag Wed Nov 4, 2015
Hi Sonia

How are things coming along? Did you ever get your credit score up and purchase a condo?
0 votes Thank Flag Link Sun Jan 26, 2014
Hi Sonia,

You may want to contact Rae Drake with Fifth third Bank.
I have referred her for the past 10 years to my buyers and she has always performed professionally.
She puts her clients interest first and is extremely knowledgable of the industry and the banks programs.
They have a great Doctor Program- She is even married to a Physician.
You can reach her at 352-514-1829 or

Good Luck,
Bernedette- Realtor in Vero Beach, Florida
0 votes Thank Flag Link Sun Jan 26, 2014
If you get a loan now, your interest rate is going to be high. If you have any high interest debt why not pay that off first, save more money for a down payment and then buy a house? That's what I would do if I was in your shoes. Please contact me if you have any questions or want any help with your search. My dad is a physician in Sac too. .

Jason Walter
REALTOR® - lic #01923240
Certified Public Accountant (CPA) - lic #103885
Hammer Real Estate Group
cell ph (916) 716-1341
0 votes Thank Flag Link Sat Nov 30, 2013
Go over this with your HR department.
0 votes Thank Flag Link Thu Nov 28, 2013
Talmer bank can portfolio your loan if your loan to value is in line with your income. Call. The Troy Michigan office anyone can help you. I work with Kristin Gee and Rod Armstrong there. I work for Beaumont/ Henry Ford / DMC and Providence Docs I'm a Realtor and my doc business has a lot to do with my loan officers getting their job done. They do a great job.
0 votes Thank Flag Link Thu Nov 28, 2013
Look up Huntington and Talmer Bank, They both do physician loans.

Nancy Robinson Century 21 Town and Country
0 votes Thank Flag Link Sun Oct 20, 2013

I would like to a mortgage for you but I can't.

This can easily be fixed. I have a good credit repair attorney, she only charges $500 and your credit will be pretty good in about 2 months.

If that does not work for you, I have friends that I can refer you to. Of course then the payment will probably be about $500 a month or so more.

Feel free to call for a free no obligation consultation.

Rich Littlefield
NMLS 287206
0 votes Thank Flag Link Tue Oct 8, 2013
Hi Sonia,

We have a program designed for clients in need of increasing their credit scores. Give me a call and we can go over your specifics so you are ready to go within 3 months!

0 votes Thank Flag Link Tue Oct 8, 2013
Most lenders nationally will want you to have a FICO of 620 or higher. While there are programs available that go down to 580, I think it is in your best interest to work on your credit score and obtain the best loan possible once it has risen.

Another suggestion you may want to look into is a credit union or portfolio lender where they essentially make their own credit guidelines.

Hope this helps!
0 votes Thank Flag Link Tue Jul 9, 2013
The fact you will be a physician is get good. Most lenders live doctors. Although mist lenders prefer 600+ I believe your circumstance will make up for lower credit score.
Best of luck Sonia,

Rob Hughes- long and foster RE
0 votes Thank Flag Link Thu May 2, 2013
Do you have revolving tradelines? Are you carrying high balances on them? So many factors determine what is holding your score down. Call us for more information on obtaining a 640 credit score.

Best of Luck;

Christina Solorzano;
CEO & SR Credit Repair Specialist at
Everlasting Credit Repair
Ex-Mortgage Broker of 10+ years
0 votes Thank Flag Link Thu May 2, 2013
Their are some lenders that go down to a 580 mid score on FHA loans. The place to start is - They have helped a lot of my clients with under a 600 score get into a home.

Good Luck!
0 votes Thank Flag Link Thu May 2, 2013
You have received many responses. Are you having any luck?
0 votes Thank Flag Link Wed Apr 25, 2012

Lets take a look at your credit report and see where I can lend my expertise in the area of credit score methodology.

I have helped thousands of families with the same situtation.

The catch of course = I want to do your loan for you. Give me your loan in the future for my FREE services today in terms of free consultation on how to tweak the specifics of your credit report to get the score up quickly. Deal with the devil? Hardly! I help you today; you help me tomorrow.

Send me an email or feel free to call me at 916-813-4003.
0 votes Thank Flag Link Tue Apr 24, 2012
Hello Sonia,

If done properly, you can fix your credit - but it'll take about 6 months to do that.
In the mean time, maybe renting for 6 months will help.
Also, I'd check out smaller banks and credit unions - who could lend based on your profession (banks love doctors) or maybe a lower LTV (to reduce the risk). Sometimes, co-signer will help as well...

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
CDPE - Certified Distressed Property Expert
0 votes Thank Flag Link Fri Apr 20, 2012
I would be happy to review your credit with you and suggest ways to bump up your score quickly. I look a credit reports daily and I know what works. Give me a call at 858-922-7899.

Technically you have a shot at a loan even with your credit score. But best to get it above 620 for optimum interest rates. And I think you can accomplish that quickly.
0 votes Thank Flag Link Fri Apr 20, 2012
Hi Robert, off the topic - how did you get yourself this phone number widget? :)
Thank you! Irina Karan/Beachfront Realty, Inc. Miami, FL
Flag Fri Apr 20, 2012
Keep working on credit repair. I have the number of the other lender that is working with my resident, if you want to give me a call.
0 votes Thank Flag Link Fri Apr 20, 2012
Yes, most lenders could help youre credit go up to 620. But you have to know that a fico score of 640 or less means a higher rate which is a high payment. My best advise is to wait for a longer period of time (like 1 years) fixed youre credit to like a 650-700. After that youre payments could be like $150 dollare cheaper. $150 x 1 years = $1,800. So dont do one of youre most inportant transaction in a hurry. Situations like this is where lenders hurry buyers to get their buisness and where buyers get really bad deals. If you have more questions please call Im a lender and would not like to see another buyer with a bad loan.

Gabino Barrera JR
0 votes Thank Flag Link Fri Apr 20, 2012
Our company will go down to a 580 credit score on an FHA with a larger down payment, so it may be possible. However I would use this next three months to try to get you credit score up. I do have someone who will give you a free consultation. Contact me through my profile if you are interested in speaking with him.
0 votes Thank Flag Link Thu Mar 15, 2012
The odds are great! I am currently working with a physician in your position and we are in escrow. It is certainly possible to get a loan but you need to consult with an experienced lender. I highly recommend Ken Lawrence at Silverado Mortgage. You can reach him at 530-223-2302. If your credit score is not high enough or there are other challenges with getting pre-qualified then he will work with you to repair/raiser your credit. Best of luck and let me know how it goes!
0 votes Thank Flag Link Thu Mar 15, 2012
Sonia, your odds of getting a mortgage are very good.

PrimeLending received an exception from investors, allowing me to offer mortgage loans for credit 600 and above. If you already have a 587, you most likely need a good loan officer to review your file and help you remove disputes and get your credit over a 600. We can then do a rapid rescore.

PrimeLending offers FHA loans for credit 600 and above for almost all property types, including condos. If you have questions, I would be happy to help.
0 votes Thank Flag Link Wed Mar 14, 2012
My homeowners association requires that my condo be owner occupied, so I can not rent it. I must sell it.
similar condos rent for $800+, I would sell mine with owner finance loan payments of $399 per month ( monthly housing expense total of $767 per month. )

That is less than rent would be.

HOA dues $245,
Property tax $55,
Condo Owner insurance $30
Sacramento County Utility Bill (Sewer & Stormwater charge) $38.
Principal and interest on seller finance mortgage: $399.
Total: $767. (this is less than rent would be)

Let me know if Foothill Farms 95841 is too far away for you.
0 votes Thank Flag Link Thu Feb 2, 2012
Jim Walker, Real Estate Pro in Carmichael, CA
When you get below 620 on the score getting a loan is still possible but more difficult and the rate is not quite as good. I would recommend speaking to a experienced loan officer and going through your credit in detail with them and seeing what can be done to quickly raise your score to 620+. I would be happy to help.
0 votes Thank Flag Link Thu Feb 2, 2012

Let's try to keep it real.....587 is a pretty low score and one in serious need of treatment. The prognosis of a full recovery in 3 months is unlikely but a reasonable treatment plan of electing to rent for an initial period, until you can rehabilitate your credit rating could bring you back to good health...and make that condo a reality.

Good luck,

0 votes Thank Flag Link Thu Feb 2, 2012
There are many types of loans products and certainly your income and credit score are factors. If you need referrals for lenders please give me a call. I would be happy to review the buying process and factors to consider when purchasing a home in this market as well. If you need a referral from other doctors that I worked with I can provide that to you. I look forward to hearing from you.
0 votes Thank Flag Link Wed Feb 1, 2012
Sounds like you have your dream job lined up and a new home on the horizons.

You have options for getting a loan with many banks and also increasing your credit score over the next three months..Simple easy steps to take too.

I would suggest you work with a local lender that you can meet face to face and review your wants and needs.

Please call or email.
I am happy to provide you with several choices for completing your home purchase.

PS. I just found the perfect house for a client last weekend that had asked this very question last summer.
It does work...and they found the house they had in mind...

Happy 2012!

Michele Peterson
Keller Williams Realty
(916) 743-5934
CA DRE 01872795
0 votes Thank Flag Link Wed Feb 1, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer