Can I get a mortgage with a low credit score?

Asked by Lauren, Philadelphia, PA Thu Mar 20, 2014

I am in the process of repairing my credit. I currently have a score of 560 and I would like to explore the possibility of purchasing a home this summer when my lease ends in August. I would be a first time buyer and only 25. What are the chances I would be approved for a loan?

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10
Robin Silver…, Mortgage Broker Or Lender, Garden City, NY
Thu Mar 20, 2014
It all depends on why your score is 560. If there are errors, collections that can be paid, charge offs that can be paid, or balances that are above the limit that can be paid down, you can probably accomplish your goals. However, with a 560 score, it sounds like it could be a combination of things, and it may take longer than a few months to fix.

If you want to buy something, I would suggest contacting a reputable loan officer. When they run your credit, if what you have are scores you obtained yourself, they may even get a lower score for you. They may be able to give you advice on what they think could happen through correcting certain things.
0 votes
Philip J. Cu…, Agent, Feasterville, PA
Thu Mar 20, 2014
I have 2 things I need you to do if you want my help first go to http://WWW.NACA.com and second call me at 267-934-1971 To make this work I need to talk with you

Philip J. Cunningham Sr.
Market Force Realty
801 W. Street Rd
Feasterville, PA 19153
866-993-8585
267-934-1971
PhilCunningham2004@yahoo.com
Web Reference:  http://www.GreatPaRE.com
0 votes
Diane Smith, Agent, Huntingdon Valley, PA
Thu Mar 20, 2014
Your chances are very good. The new requirements for an FHA loan is 580 for a loan with 3.5% down. Of course there are other possible problems like are you employed? Do you have any savings and how much do you owe and to whom? Give me the details and I will find a way to get you in a home in August.

Diane Smith
mortgage broker
Lexicon Financial
215-460-8456
0 votes
John Thomas, Mortgage Broker Or Lender, Newark, DE
Thu Mar 20, 2014
Hello,

Actually you can get a loan with a score of 560. FHA allows you to go down to 500 FICO score to obtain an FHA loan. If you score is 580 or higher then you only have to put down 3.5% of the purchase price. If your score is below 580 then you have to put down 10% of the purchase price. THere are very few banks that will lend below 580 because of their own internal overlays. Primary Residential Mortgage, Inc. who I work for is one of the few banks that will follow FHA guidelines and lend on FICO scores down to 500.

If you would like to discuss your situation, please call me at 610-906-3109 or you can apply online at http://www.PRMIDelaware.com/loanapplication

John R. Thomas
Certified Mortgage Planner - NMLS 38783
Primary Residential Mortgage, Inc.
610-906-3109 PA Office
302-703-0727 DE Office
0 votes
Susanna Kunk…, Agent, Philadelphia, PA
Thu Mar 20, 2014
Hi Lauren, there are loan programs for people with credit scores starting at 600. We have credit repair specialists who can help move your credit score up rapidly. We're hosting a first time home buying seminar on April 5th, and you can learn how to do that. Please email me and I'll send you the info. You can do this! :)
0 votes
Nicole Carter, Agent, Philadelphia, PA
Thu Mar 20, 2014
Hi Lauren,
I have someone that might be able to get you pre approved now. My advise to you is that you are on the right track...keep doing whatever you can do to help your credit score it will only lower your interest rate in the long run. Please contact me and we can discuss this option further.
Nicole Carter
Coldwell Banker Preferred
ncarter@cbpref.com
267 975-7034
0 votes
David Siegel, Agent, Philadelphia, PA
Thu Mar 20, 2014
You demonstrate irresponsible characteristics by having poor credit at 25. You can get an interest only "hard money" loan secured by the real estate if you save a large down payment about 30% of purchase price and willing to pay 20% interest only. Call every mortgage broker advertising on the internet and ask them if you are qualified for a loan with a 560.
0 votes
Seth Wismer, Agent, Philadelphia, PA
Thu Mar 20, 2014
Hi Lauren,

That is great that you at 25 you already have set a goal to own a home! Kudos to you!

To answer your question, I have had clients with low credit scores and I have found them lenders who will approve an FHA loan with scores as low as 580, so you may have a chance to be approved for a loan. I can't say what your "chances" are exactly, but if you get your credit score up a little higher you may have a chance to be approved for a loan.

Please feel free to contact me at any time.

Seth Wismer
Coldwell Banker Preferred
215-87-6884
swismer@cbpref.com
0 votes
Christopher…, Agent, Langhorne, PA
Thu Mar 20, 2014
Hi Lauren,

Your credit score, unfortunately, is currently too low to get any type of mortgage that would be beneficial to you. There are, however, many ways for you to improve your credit score. If you would like, I could put you in touch with a mortgage consultant that I work with. They have helped many of my clients turn their credit score around so those clients were able to get mortgages. Feel free to contact me anytime.

All the Best,
Christopher Blouch
Keller Williams Real Estate
215-821-5333
215-757-6100 ext. 338
Cblouch@kw.com
0 votes
Christopher…, Agent, Tarrytown, NY
Thu Mar 20, 2014
Unfortunately your score is too low to get any type of loan that would benefit you. I would wait until your score is in, at least the mid 600 range and then inquire about an FHA loan.

Chris
0 votes
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