Poor credit score but trying to qualify for a home loan

Asked by Toshafarr, Durham, NC Sat Feb 9, 2013

My husband and I are currently looking to purchase another home. He has excellent credit and I have a credit score of 561. Hopefully this will go up because i recently disputed some negative things on the credit reports. They were removed from equifax but Im still waiting to hear from the other two.Together our income totals over 100,000. Will i be able to qualify for a mortgage?

Help the community by answering this question:

+ web reference
Web reference:


Trevor Curran’s answer
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Tue Feb 12, 2013
Good morning Toshafarr,

First: get a referral to an experienced Local Mortgage Banker. Get prequalified in person by the Mortgage Banker. IF you are then told your credit score is insufficient to qualify for a mortgage loan then you need to put your financial "house in order" before you take on the responsibility of owning a home.

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 have a low credit score and you have a dream of buying a home, here's some simple advice for you.

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.consumer.ftc.gov/articles/0058-credit-repair-how-…

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

If you thought my answer was helpful, please give me a "Thumbs Up." Thanks!
1 vote
lendersnetwo…, Agent, Plano, TX
Tue Oct 22, 2013
We help people who have low credit scores and match you with a lender that has a loan product for you. 580 credit score needed for FHA and 620 for conventional with 3% down. Maybe a few things can be done to increase your score the 19 points you need.
2 votes
Anne Aylin, Agent, Chapel Hill, NC
Sat Feb 9, 2013
As Realtors, we really can't help you determine whether or not you can qualify for a mortgage. If you contact me directly, I would be happy to give you the names and contact information of some trusted local lenders who can give you the information you need.

Anne Aylin
2 votes
Deborah Mill…, Agent, Durham, NC
Sat Feb 9, 2013
I work with clients all the time who have scores in low 500"d i would be happy to sit down with you and have a lender and myself provide you a pathway to get you to home ownership. From what you shared i i do not thonk it will be long befote you would be able to pre quallify . Let me lnow if i can help.
Deborah Miller 919-491-2826
Coldwell. BANKER
1 vote
me and three other people would like to purchase a home but the scores are 756, 608 628 676 all four middle scores is this something you can do combine salary 80k
Flag Wed Feb 20, 2013
Stacie Dye, Agent, Chapel Hill, NC
Sat Feb 9, 2013

These are all great questions. I suggest that you speak with a Lender. If you are not already working with a Lender I will be glad to recommend one to you. I have recently had a Lender to work with some of my clients on helping them get qualified when they were not able to qualify before. There are many programs available to help you get qualified and repair your credit if that is what is needed. Please use caution when contacting them and make sure the company is reputable before starting the process. You also want to be mindful of how often you and others pull your credit score because that can affect your score as well. There are so many factors in obtaining a mortgage so you are on the right track by asking these questions.

I will be glad to assist you in a Lender Referral if needed. Please don't hesitate to contact me directly with any questions about the process.

Have A Good Day!
Stacie Dye, Broker, Realtor

Go Realty
1 vote
Andy Matejka, Mortgage Broker Or Lender, Greensboro, NC
Sat Feb 9, 2013
There's more to it than just credit an income, but they are huge factors for sure and they can be the first reason one can be denied for a mortgage loan, but your lender will have more questions.

IF you are not already working with a lender feel free to give me a ring.
1 vote
Search Advice
Ask our community a question

Email me when…

Learn more