What is the minimum credit score aomeone needs to get a home loan and do spouses have to put both names on loan?

Asked by Saucier, Auburn, ME Mon May 7, 2012

Can you get a loan with credit score just coming back up at 580?

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Mon Jul 29, 2013
Good afternoon Saucier,

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

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1 vote
Jonathan Rob…, Agent, Lewiston, ME
Mon Sep 16, 2013
Yes you can if your interested in getting some help to find the right banker please call me anytime!
0 votes
stephen webb…, Agent, Kirkland, WA
Mon Jul 29, 2013
Hi Trevor
Too many times in my 34 years of real estate I have seen incorrect credit scores stated by the credit agencies. The corrections and remedies are not difficult to correct.
For most people the first objective is to be sure the credit score is correct and the most effective and efficient way is to have an experienced loan officer look over the credit statement.
Very often negative issues should have removed but have not or negatives are stated but cannot be substantiated.
Find yourself an experienced loan officer. They will not claim to be credit experts but credit is a key issue and they work with credit everyday with a very powerful incentive. The loan.
You will find a few articles on Your-Road-Home.com that will serve you well. Consultation Interviewing Loan Officers and a few on credit.
After you have gathered all of the objective information you can find and are ready to interview loan officers you will find them from your area offering their services on Trulia.
Best of Luck, Stephen Webber, Retired After 34 Years of Real Estate for First Time Home Buyers
Web Reference:  http://Your-Road-Home.com
0 votes
Linda Taylor, Agent, Auburn, WA
Mon Jul 29, 2013
I would suggest you contact a lender to have your questions answered. There are many in the Auburn area that can help you. Most of the lenders can answer your questions with just a phone call, they are willing to work with you and if your score needs to come up they can suggest what you would need to do.
0 votes
Scott McCaul…, Other Pro, Portsmouth, NH
Mon May 7, 2012
There is potential. We would need to look at the whole picture... work history, income, money saved , etc... If you would like to speak about options, please call me any time- Scott 603-610-8852

Scott McCauley
Licensed Mortgage Planner
Regency Mortgage Corp
NMLS #174108

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