Are there any lenders for people with low credit scores?

Asked by fitnessforevernow, Birmingham, AL Sat Jul 13, 2013

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Aaron Sims, , Birmingham, AL
Wed Sep 11, 2013
The below answers are all good, I would recomend that your best bet is to find a local lender that is willing to work with you and help you improve your credit. It will in all likelyhood be not easy, and may take a few to several months, but in the long run will get you to a place where owning a home will be a lot easier and you'll qualify for more, and recieve better terms probably.

Best of luck!

Aaron Sims
1 vote
Carolyn and…, Agent, Shreveport, LA
Sun Aug 25, 2013
Unless a lender is going to hold the loan in house and NEVER planning to sell it, they must all follow (conform) to the save loan guidelines. Almost no lender wants to hold a loan in house, so almost all lenders follow the same lending rules. You want someone local who you can look in the eye and answer questions face to face. Real estate is like the weather, it is local. Lending is an important part of that process. Avoid internet lenders.
1 vote
, ,
Sun Jul 14, 2013
A lot will depend on exactly how low the score and how bad the credit is. For an FHA mortgage, most lenders require a 640+ credit score for the last 3-4 years now.

Prospect Mortgage is one of the few direct lenders to offer an FHA 580-639 FICO loan program. Credit profile is a major factor in a mortgage approval. Generally, there should be no late payments, new collections accounts/charge-offs/liens/judgments in the last 12 months. It is required that all open collection accounts must be paid in full if their cumulative balances exceed $1,000.

The 3.5% minimum down payment can be from the borrowers own funds or it can be gifted from a family member. Two months of reserves for the PITI (Principal + Interest + Taxes + Insurance) payment + HOA Dues will be required. This must be from the borrower’s own funds and not a gift.

Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
1 vote
Jonathan Hya…, Agent, Trussville, AL
Tue Sep 10, 2013
I have had several successful transactions with broker Stewart Holt at Adventure Mortgage in Hoover on deals where the buyer had a less than desirable credit score, DTI, or other circumstances that a traditional direct lender could not overcome. Good luck!
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