Is there any home loan lenders in PA who will accept 582 credit score?

Asked by Eboneechild, Philadelphia, PA Sat Nov 7, 2009

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Trevor Curran’s answer
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Sun Apr 29, 2012
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
0 votes
Jessica Bate…, Agent, Beverly Hills, CA
Tue Oct 29, 2013
You can get an FHA loan with a 580 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
1 vote
Christopher…, Agent, Collegeville, PA
Sun Aug 11, 2013
Have you considered NACA? It amazes me how many professionals in this industry are not aware of the tools in place to help them facilitate a transaction. Naca A.K.A. Neighborhood Assistance Corporation of America has been in existence since the 80's helping potential home owners such as yourself. They offer 100% financing with NO PMI and there is NO income requirements. If you're tired of being told "NO" and want to explore other options, feel free to contact me directly. Best of luck!!

Chris Nelson
National REO Broker Association (NRBA) Member
REOMAC Member Member
Certified Distressed Property Expert (CDPE)
Platinum Equator & RES.NET Certified
794 Penllyn Pike, Ste. 120
Blue Bell, Pa 19422
215.641.2500 Main
215.641.2542 Fax
484.576.7430 Cell*
0 votes
Mack McCoy, Agent, Seattle, WA
Sat Aug 10, 2013
It's one thing to self promote, it's another to bump a dozen FOUR YEAR OLD POSTS while doing so.
0 votes
Sean Dawes, , Philadelphia, PA
Sun Nov 8, 2009
If you cannot find any lenders (as most will require 620 or higher now) how about doing a lease option to buy until your credit is where the lenders require?

Basically you rent the property with part of your rent going towards the downpayment for 6-12mths and then purchase at the end of the lease.

Sean Dawes
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