what if my score is below 580, can i still get a home loan?

Asked by Maria Arellano, Charlotte, NC Sat May 5, 2012

my credit score is 577, would i be able to get a small home loan?

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19
Andrea Gomez’s answer
Andrea Gomez, Other Pro, San Antonio, TX
Sun Jul 14, 2013
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 you, I just filled out the form and I am keeping my fingers crossed
Flag Mon Jun 30, 2014
dave, Agent, Charlotte, NC
Sun May 6, 2012
The size of the loan plays more of a factor than the credit score itself. I have had people with scores as low as yours and even lower get approved for mortgages. That is not to say you definitely can.

but there are options possibly avaialble to you. part of it is what is on your credit report...How old some of the items are, any positive credit to replace any negative credit recently, how much your mortgage payment is goggn to be in relation to your income, and other factors.

If you want to contact Christopher Ayer at 704-771-3954 or e-mail him at christopher.ayer@mortgagefamily.com He should be able to help you or tell you what you need to do to get approved.

Dave diCecco
Realtor/Broker
http://www.davedicecco.com
2 votes
Dan Tabit, Agent, Issaquah, WA
Sat May 5, 2012
Maria,
Only a lender can approve or deny your application. Conventional financing requires higher scores than this, but there may be alternative options from a mortgage broker depending on your other mitigating factors.
Here's the uncomfortable truth however, if you could get a loan right now the terms may not be that good and the question would be, why would a lender loan to someone with that score.
My suggestion would be to take some time to address the issues that have caused your scores to be so low. Are there errors on your report, dispute them. Do you have a reliable source of income? Do you have a budget and do you stick to it?
Solving these issues now, before you take on a serious long term commitment of a mortgage will improve your chances of keeping the home.
2 votes
Lynn Harrison, Home Buyer, Tampa, FL
Fri Nov 25, 2016
I was approved with a 580 score. Have you checked out The Lenders Network yet? They were the company the helped me get approved.
1 vote
Megan Miller, Home Buyer, Fresno, CA
Mon Jul 13, 2015
Yes you can get an FHA Loan with a 580 score. I was approved with a 595 score, have you tried The Lenders Network? They specialize in helping people with low credit scores find lenders. I highly recommend checking them out.
1 vote
Jenny Linich, Agent, Fort Mill, SC
Sat May 5, 2012
Size of the loan is more dependent on debt to income ratio than on credit score. I have lenders that can do FHA loans with your credit score as well as work with you to raise your credit score. Give me a call at 803 372 8033.
1 vote
Hello,

My name is David Tucker. I am writing to find out if you offer any lease to own options for consumers with less than perfect credit in the Charlotte area?

I am trying to rebuild my credit and do not wish to signed for 20-30 years. I do NOT need a house, just a 2bed/2bath condo.

Any assistance provided would be greatly appreciated.
dk.tucker@gmail.com
Flag Sat Nov 30, 2013
I am wanting to start my family and as a first time homebuyer I am having a hard time as everyone else getting credit established, I work 2 good jobs and I am more than ready for a permanent foundation ,
Flag Mon Nov 18, 2013
Emmer Barrett, Renter, New York, NY
Wed May 3, 2017
I believe in family, so i have helped a family member twice to get on their feet by cosigning for them which has resulted in bad credit on myself and them. My bank says i have excellent credit with them but cosigning is against my report at the credit bureau. I have helped three other family members thru times of illness also, but now i need help. The owner where i rent has decided to sell and my lease is up in june. I need a small house in charlottes 28269 area so i can be close to my job. Can you help?
0 votes
Durham.kendra, Home Buyer, Dallas, TX
Wed Mar 22, 2017
My Loan Is Your Loan work with borrowers down to a 550 credit score for VA, FHA, and USDA loans. They have a direct lender who was able to get my loan closed fast. I would check them out. I worked with Brian Young at 2147973479 I would call him super easy and nice he helped before we completed an application.

Myloanyourloan.com
0 votes
Thomast197668, Home Buyer, Charlotte, NC
Mon Feb 6, 2017
My credit score is 618 what are my chances of getting a home loan?
0 votes
Rawlingsasha…, Home Buyer, Charlotte, NC
Wed Apr 13, 2016
What if my score is below 540
0 votes
Invstnlfp, Home Buyer, New York, NY
Sun Jan 10, 2016
I work for a direct lender in the mortgage industry who offers conventional, FHA VA, and USDA loans in all 50 states. 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
Yes I do I'm a licensed broker so if you have any questions feel free to ask or give me a ring, I write loans in multiple states.
Flag Sat Mar 4, 2017
Do you work with people in Georgia? If so write me at west2003@netzero.com






@
2
Flag Sat Feb 18, 2017
Do you only work with people in NY?
Flag Mon Jan 2, 2017
Matt, , Dallas, TX
Wed Aug 12, 2015
We offer standard FHA & VA financing down to a 580 credit score without investor overlays, and close the average file well within 30 days. All processing and underwriting is done in office, communication is impeccable. Feel free to check out my Zillow profile below, and let me know if I can be of assistance:

http://www.zillow.com/profile/matt802/
matt@nlcloans.com
214-866-0038
0 votes
Beth Michaels, Home Buyer, Tampa, FL
Sat Aug 8, 2015
VA mortgage benefits that only come with a VA mortgage:

Easier qualification standards
Less strict credit and income standards
No down payment required
Bad Credit Score VA loans Down to 550!
VA HOME BUYER LOANS or VA MORTGAGE REFINANCE
http://www.florida-mortgage-lenders.com/va-mortgage-florida.html
0 votes
Christina Ha…, Mortgage Broker Or Lender, Morristown, TN
Tue Jun 18, 2013
Maria:

A smaller loan amount doesn't have any less requirements for an applicant. Please read my blog on how to buy a home with poor credit.

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
https://www.facebook.com/EverlastingCR?ref=hl
http://www.trulia.com/blog/christina_solorzano/2013/06/how_t…
0 votes
Daniel Fisher, Agent, Charlotte, NC
Thu Feb 21, 2013
Good afternoon, Maria:
Are you still in the market? If so, while minimum credit score requirements have risen at many lenders, we still can find financing at 600+ middle credit if you meet the criteria in the Trulia Blog "I have bad credit and no savings. Can I get a home or am I stuck renting?" http://goo.gl/5RG3w If you are under 600 middle FICO, here are ten tips for improving yoru credit: http://www.trulia.com/blog/dfisher/2011/08/ten_tips_for_repa… If you appreciate this answer, please give it a "thumbs up", or if this was the most helpful answer, please say thanks with a "best answer" click .
0 votes
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Tue May 15, 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 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/microsites/moneymatters/dealing-w…


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
Ive used Credit Pros. and they are pretty good and reasonable.
Flag Mon Feb 16, 2015
Michelle San…, , Broomfield, CO
Thu May 10, 2012
Have you had a Mortgage lender pull your credit? Your score can be different depending on who pulled your credit. In mortgage lending we pull a tri-merge credit report which is compiled of all three major credit reporting agencies (Equifax, TransUnion, and Experian). We then take the middle number of these three scores and use that in determining your qualifying score.

While the credit score is part of the equation in lending, there are other factors that also determine what you would qualify for in terms of a mortgage. The amount of the mortgage loan is based off of your income, job stability, other expenses and your ability to pay back the mortgage loan.We offer a free service to clients that gets them on track to buy whether it's in 5 months from now to 5 years from now. I am sure someone in your area also offers similar programs.

It's really important you work with someone who is going to educate you and set a clear path for you to increase your scores and to teach you good habits to maintain those scores or keep improving them. Good luck!
0 votes
J, Agent, Greensboro, NC
Thu May 10, 2012
Getting a loan with your credit score will be very hard, at least this is what I am experiencing with clients of similar credit scores. I would suggest learning how you can improve your credit score. There are quite a few lenders who can assist you with this process and get you where you need to be to purchase a home if you are wanting to finance. If you did find a lender that would loan you money to buy a house, more than likely what you will pay in interest would far exceed the financial benefit of home ownership. Be wise with your money, learn the facts of what affects credit and then consider buying a home when you are ready. Good luck to you!
0 votes
Andy Matejka, Mortgage Broker Or Lender, Greensboro, NC
Sun May 6, 2012
credit scores are not the sole qualifier for approvability for a mortgage loan. Getting "mortgage ready" is right thing to do. Having low scores like you have is just a symptom of poor 'credit' health.

Often times there is more to just having enough open and active trade lines that report your on time payments each month but having creditors report your timely payments is the best way to ensure that you have healthy enough scores in order to be approved for a mortgage.....small or large.

A good loan officer or a Consumer Credit Counseling Agency will provide you the analysis you need in order to rebuild your scores. I've seen 100 point turn-arounds in as little as 6 months.

If you make the right changes, you could be celebrating your Thanksgiving in your new home this year!

Go for it!
0 votes
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