Credit Score in San Antonio>Question Details

Amandamatthe…, Renter in Seguin, TX

My credit score is 550. Where can I get a mortgage?

Asked by Amandamatthews_316, Seguin, TX Thu Jul 26, 2012

I just sold my house and want to buy another. My Fico is 550. Where can I get financing? I have never been late on my mortgage payment during the 10 years I had it. I'm always on time with my car payment and I have a steady work history.I'm in the San Antonio, tx area.

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Kathy Walsh’s answer
Hi Amanda,
There's some good advice already posted here, but the best advice I can give you is to talk to a lender who works with buyers whose score are in need of some repair before you start paying off your debt. There are ways of doing it that will be MUCH more effective in raising your score more quickly. If you follow a good plan you can improve your score significantly within months. I have lenders who work with people with scores of 600 or so.
Best of luck, and give me a call if I can help!

Kathy Walsh
Keller Williams Heritage
2338 N. Loop 1604 W. - Ste 120
San Antonio, TX 78248
2 votes Thank Flag Link Thu Jul 26, 2012
Depends where you found your score at? The online credit report scores are different than mortgage credit scores, your score could be higher than you think. My company has relationships with lenders that offer loans with a 580 credit score.
3 votes Thank Flag Link Sat Sep 28, 2013
Good morning Amandamatthews_316,

Most Lenders require a minimum credit score of 640 in today's lending environment, although some Lenders will lend on a 620 credit score. While your score is not so terrible, it is unlikely you could be approved for mortgage financing with that credit score at this time.

AND, if you meet a mortgage professional claiming to assist you with this low score, turn and walk away. Your score indicates there are serious issues on your credit history that you need to address before you take on the responsibility of owning a home and paying a mortgage. I strongly recommend you take the time to put your financial house in order before you take on the challenge of homeownership.

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
1 vote Thank Flag Link Mon Aug 6, 2012
My fiance and I have a average credit score of 550. We would like to get a mortgage is it possible and if so with who
0 votes Thank Flag Link Tue Mar 4, 2014
Find a lender who will help you get your financial house in order. It may take a while but your need about a 100 point jump in your credit to qualify for an FHA purchase loan. What you need to focus on now is doing things that will increase your scores because that is what you need to do first. Then you can look at buying a home. Set up secured credit cards and installment loans with one or two banks to establish credit. Don't charge over 30-40% on your available balance ever for maximum benefit. Paying them off in full makes zero difference in your scores. It saves you interest but the main thing is never to charge them over 40% of your available balance or your scores can actually take a hit.

Once you get your credit in order then you can focus on buying a home.

Best of luck to you.

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o 512.669.5599 m 512.633.4157 |
Web Reference:
0 votes Thank Flag Link Sat Jul 28, 2012
Lots of smoke and mirrors out there.. but here are the facts...

The only "Lenders" that will take a 550 are "Hard Money" lenders and they will want to see you buy a home that has a ton of equity already in it, or you put a huge down payment down.

You can do an FHA loan down to a 580 with 5% down, provided you have some reserves set aside either in a savings account or a 401K. I have a great lender that pulls those off all the time..

But honestly.. you are much better working with someone who can do some credit clean with you... and I have a company that I have sent people to for a very long time, and the results have been flat amazing! They are very inexpensive and their work is amazing..

I would recommend getting with those guys, get your scores up, and go get an solid FHA approval where your interest rates will be around 3.5% fixed and you will only need about 3.5% down... Its not very hard to get from a 550 to a 620... I see it happen every day.

Give me a call, e-mail or text, and I'll guide you through it.

Jason C Campbell
Option One Real Estate
0 votes Thank Flag Link Fri Jul 27, 2012
I suggest talking with a local loan officer and have them pull your credit to find out why it is low. Typically minimum FICO scores are in the 630's, but bear in mind getting pre approved for a mortgage has a lot more involved than just a FICO score.
0 votes Thank Flag Link Thu Jul 26, 2012
Yes, Tom you are right. Sometimes It's fast and other times It's like you said, coach them and if they fallow instructions it usually works out. As you know every customer is different.
0 votes Thank Flag Link Thu Jul 26, 2012

You guys can close and fund 550 FICOs? Great..... I will send you a lot of business!!!!!!!

I have to work with the client and find out why the score is low and coach the client in ways to improve the credit score. Takes a little time sometimes.... Sometimes it is pretty quick.


Do you always say YES.... CONTACT ME?!?!?!?
0 votes Thank Flag Link Thu Jul 26, 2012
Hello, Please call this Loan officer, Tony Herrera......he will take care of you ...mention I recomended you call him, or call me Jose Salas from Home Team of America (210)722-1838 or (210)385-1539

Open Mortgage Home Lending
9514 Console Dr. Ste.100D
San Antonio,Texas 78229
210-279-5704 Office
210-201-8177 E Fax
0 votes Thank Flag Link Thu Jul 26, 2012
Hmmmm. If you have 10 years of on-time payment history with your home and on-time car payments, it seems odd your score is so low. Bottom line is you will not qualify for financing with your current score. Best bet is to increase your score to the mid-600's by paying off debt and ensuring pay timeliness on all your monthly payments. Good Luck.
0 votes Thank Flag Link Thu Jul 26, 2012
Hello Amanda,

I can refer to you an awesome program that may just fit your circumstances. Please call me when you have a moment.

Diana Tawil
0 votes Thank Flag Link Thu Jul 26, 2012
Always on time with your mortgage and auto?
And still have a 550?

Do you have a credit report we can look at together?
I am surprised the score is that low with the 2 very positive trade lines that weigh heavily in the FICO scoring
0 votes Thank Flag Link Thu Jul 26, 2012
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