Can I purchase a home if my credit score is 640?

Asked by Dyanne Silva, Deerfield Estates, Cedar Grove, FL Mon Feb 18, 2013

I had to short-sale my home in Port St. Lucie after the market crashed. I'm slowly rethinking about purchasing a home in Palm Beach County, but my credit score is 640. The home I'm interested is $139,000.00 and I am able to give $20,000.00 as down payment.

Help the community by answering this question:

+ web reference
Web reference:


lendersnetwo…, Agent, Plano, TX
Sun Sep 1, 2013
Yes you do qualify now for a new program for FHA by HUD for people with a short sale you just need 12 months from the date of the short sale or foreclosure.

The U.S. Department of Housing and Urban Development (HUD) recently announced the “Back to Work – Extenuating Circumstances” program, aimed to help people who have lost their home through foreclosure, short sale or bankruptcy. HUD has reduced the previously required minimum of 36 months to 12 months before they may be able to finance another home, given that they meet HUD’s minimum eligibility requirements.
2 votes
Claudia Fish…, Agent, Palm Beach, FL
Wed Apr 30, 2014
Hi Dyanne,

If you weren't able to buy a home when you originally asked this question, I would try again now. Contact a Mortgage Broker to help, and be sure to ask them about the FHA's "Back to Work" Program.

Best of luck, and call or email if I can be of any help.


Claudia Fisher
Realtor® | Kroll Realty Co
0 votes
Jennifer Sus…, Agent, Boca Raton, FL
Mon Oct 21, 2013
Dear Dyanne.

It's best to contact a mortgage broker. Here is one that you can reach out to.
Emmanuel St.Germain
Vice President
Choice Mortgage Bank
(o) 561.362.8204 Direct Line
(f) 561.277.2543
(c) 561.400.7317

Always a pleasure,
Jennifer Susanne Sommers
Luxury Real Estate Specialist/Top 5 Producer
Nestler Poletto Sotheby's International Realty
200 East Palmetto Park Road, Suite 104
Boca Raton, FL 33432
Direct – 561-235-7777
Mobile/Text- 786-390-9299
0 votes
Preston Ware, Mortgage Broker Or Lender, Altamonte Springs, FL
Tue Sep 10, 2013
Hello Dyanne, The credit score is fine. I can accommodate down to a 620 score with both FHA and Fannie Mae. The larger question is , "when did the short sale occur?". We have to start our clock from the date of the sale, e.g certificate of title date. FHA will let you purchase a new home 3 years after certificate of title date. Fannie Mae is longer. I hope this helps.
Web Reference:
0 votes
Mark Doring, Agent, Coconut Creek, FL
Tue Sep 10, 2013
Possibly, depending on the other factors in your application. Sounds like you are going to need a mortgage broker who is experienced in overcoming hurdles in getting your application approved and closed. I recommend Ryan Brandenburger with Bayburg Financial. I've been referring my clients to him for 6 years now and he is excellent at what he does.

Ryan can be reached at 954-394-9005 or
0 votes
Patrick Keef…, Mortgage Broker Or Lender, Lake Mary, FL
Tue Feb 19, 2013
Yes, but you will need at least a 620 score in order to buy with a 3.5% down payment.
0 votes
Preston Ware, Mortgage Broker Or Lender, Altamonte Springs, FL
Tue Feb 19, 2013
Hi Dyanne, Credit score most likely will not be the issue that holds you back here. I can accomodate credit scores all the way down to 580. (FHA) We have to ask when did you short sale your home? If you were late on your payments leading up to your short sale, (which virtually everybody is) FHA guidelines require a 3 year wait from the time you short sale until the time you purchase. Fannie Mae guidelines require a 4 year wait or with extenuating circumstances 2 years. So far I have yet to see anyone qualify as extenuating circumstances. Assuming you do get an approval FNMA then you have to also get approved by the mortgage insurance company which makes things doubly difficult. Bottom line, you will most likely have to wait three years.
0 votes
How much you can borrow with an 580 credit score?
Flag Wed Nov 6, 2013
Russ Greenbe…, Agent, Boca Raton, FL
Mon Feb 18, 2013
Hi Dyanne,
640 is OK. With FHA you can get a mortgage with 620 score for owner occupant. Next as long as you kept your credit good 2-3 years since the short sale then we can get you a pre-approval first then you can be confidant to start home shopping. Putting 20% down would eliminate mortgage insurance premium which is even better for you. Feel free to contact to better assist you.
Russ Greenberg, Realtor, ePro
0 votes
Nitza Ramos, Agent, Pembroke Pines, FL
Mon Feb 18, 2013
Hi Dyanne,

It might be possible, but to make sure if you qualify you need to speak to a mortgage lender and he/she will be able to determine whether or not they can preapprove you for a loan. If you need help finding one, please call me at 954-856-3156 and I'll be happy to provide you with the contact information of a couple of them.

Best regards,

Nitza Ramos
Realtor & Lic. Community Association Manager
East Coast Realty Group LLC
Direct: 954-856-3156Fax: 954-934-9530
0 votes
marc jablon, Agent, Boca Raton, FL
Mon Feb 18, 2013
I have customers who are purchasing easily with scores of 640. In order to find out whether you qualify for what you have in mind, please call a reliable mortgage banker. Preston Ware 561-329-0075 or go to He will be able to tell you whether or not you will qualify.

Marc Jablon, The Jablon Team
RE/MAX Complete Solutions
0 votes
David Park, Agent, Bay, AR
Mon Feb 18, 2013
Hi Dyanne:

The short answer is this; you can certainly obtain financing with a 640 score , but understand this will be a sub-prime loan which will subject you to higher interest rates. Assuming you show good employment history and have the ability to repay the monthly mortgage you can find financing.

This also assumes the balance of your credit (not prior short sale) is reflecting payments paid on time.

If you have any additional questions you may reach me at 561.324.5707 or through our website at;


0 votes
Adam R. Cohn, , Boca Raton, FL
Mon Feb 18, 2013
There is options. Call me anytime at 561 289 0125
0 votes
Scott Godzyk, Agent, Manchester, NH
Mon Feb 18, 2013
Perhaps, you should meet with a local and truste dloan officer who can prequalify you. they can look at your credita nd financials and let you know.
0 votes
Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Mon Feb 18, 2013
If the SS was over 3yrs ago...or if there were no late payments in the 12 months leading up to the SS then YES, its likely you may be able to buy now

If this is not the case, there still may be options.

Call me after 4:00 and tell you what you can do

See loan programs: http://WWW.PRO-OPTION.COM

0 votes
Search Advice
Ask our community a question

Email me when…

Learn more