Can my wife and I get a home loan with a credit score of 604?

Asked by anthonyhallberg, Minneapolis, MN Wed Sep 18, 2013

We have old debt but nothing in the last four years. We have some debt on our credit report that is almost seven years old that is outstanding, but was told to just let them fall off. I would have a down payment of $30,000. We live in the Minneapolis,MN area. Any answers will help!! We need a home for our family of four so badly, I hate to rent anymore.

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Brian Nguyen, Mortgage Broker Or Lender, Mission Viejo, CA
Wed Feb 19, 2014
It's possible to obtain a loan with your credit score. For example, I have been able to give out loans with credit scores as low as 580. The fact that you still have debt is not good. Lenders will not like that. I recommend that you try to pay off that debt. I'm sure that will improve your credit score and allow you to obtain better rates. Either way, I recommend you speak with a lender like myself who would be more than willing to help you out in your situation. Well I hope this helps! If you have any other questions or if you would like a loan, feel free to contact me. Good Luck! Brian Nguyen Sr. Mortgage Banker NMLS # 659743 Phone: 949.667.2887
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Cody Anderson, Agent, Minneapolis, MN
Mon Sep 23, 2013
Hi Mr Hallberg,

I work out of the Uptown Remax Results office. The loan officer I network the most with is also located in Uptown. I suggest to you to meet or call him at your earliest convenience. After he approves you we can find you great deal on a home you love.

Cody Anderson, MN Licensed Realtor

Metropolitan Home Team

Phone: 612-242-5752

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J, Agent, Greensboro, NC
Thu Sep 19, 2013
Hi Anthony. Who advised you to avoid your "old debt" and let it just "fall off" your CSR? Geez, I'm nearly certain this is contributing to your current 604 CSR...and 7 years later. I suggest you start woking on getting the old debt reconcilled or removed from your CSR.

Please understand, your CSR indicates to a lender how responsible you have been with your finances. What would you say to a lender if they ask you why you didn't address your old debt?

I would also advise financial counseling to assist you with understanding what you need to do to put yourself and your family on a path to homeownership. Good luck to you!
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Claire Basti…, Agent, Fridley, MN
Thu Sep 19, 2013
Hello Anthony,

You would want to consult with a reputable lender who could advise you on what their underwriter would look for on your credit. You would have to provide specific details to them in order for them to analyze how best to help you. There are mortgage products out there for you but is it in your best interest to use them?

You might have to go through credit rebuilding prior to purchasing in order to clear off any old debt on your credit if that is even possible. But, by raising your credit score, you are eligible for a lower interest rate. Worth it in the long run if you can wait a few months.

Given the amount of your downpayment you might use some of those funds to hire someone to assist you to rebuild your credit and get your credit information cleaned up.

If you want the name of the person to help you rebuild credit or a referral to a lender, let me know.

I would want you to meet with a trusted professional in order to get current and legal advice.

Let me know if I can help, Claire.
Claire Bastien
Buyers Real Estate Group
Cell: 612-366-6363
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Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Thu Sep 19, 2013
Old debts or collections? They are not the same thing, and who advised you to let them fall off? There is no guarantee they will ever fall off, it depends on what the company/individual does that is owed the money. If they keep updating their claim you could die first before they fall off.

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
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Jerry Sather, Mortgage Broker Or Lender, Minneapolis, MN
Thu Sep 19, 2013
Hi Anthony,

There is no way to accurately answer your question without knowing a few other important details. You should sit down (in person, or over the phone) with an experienced mortgage professional and walk through your unique scenario. Your current situation may or may not work.

As an example, I can fund a new purchase mortgage for individuals with credit scores as low as 680. BUT there are other things that must be looked at for qualifying in addition to the credit score such as income, assets and the actual home you are looking to purchase.

It would be in your best interest to find out exactly what you can and can't do right now and get help making a step by step action plan that either gets you into a house now or sometime very soon. The key is to get that plan started now though.

Obviously I can help you out with this and always offer a free no-obligation mortgage qualifying analysis so you will know exactly where you stand. Give me a call 612-242-6134.

Take care,

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Mike Kelcher, Agent, Burnesville, MN
Wed Sep 18, 2013
The answer is yes....maybe. There are many things that lenders consider and your credit score is only one of them. A credit score of 604 would qualify for some mortgage products, but there are other things to consider. Contact me, and I'll try to help.
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Bill Boldenow, , Minneapolis, MN
Wed Sep 18, 2013
Hello Anthony,

I have 3 lenders I work with that can fund your loan with that credit score. So getting you a loan should be no issue. Most banks require a 640 credit score or more. We help many people out with credit like yours and can go as low as a 580 credit score. I only need 3.5% down as well if you would rather not put that much money down. If you would like to put $30,000 down though that is no problem, I just want to provide you with options that best fit you. I have 15 years experience so please feel free to reach out to me. I would love to help you achieve homeownership for you and your family. I just had twins 8 months ago and I know how hard it is to find a decent place these days for your family in the rental market let alone throwing your money away to rent. I look forward to speaking with you!

Bill Boldenow
Purchase Manager / Loan Officer
NMLS# 31974
Cascade Mortgage
2801 Hennepin Ave S
Minneapolis, MN 55408

O: 612-252-3347
C: 612-387-4745
F: 866-365-5065


My business is built on referrals from people like you, so please feel free to pass on my name and number to anyone looking to buy or refinance a home. Thank you!
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Jeremy Rock, Agent, Minneapolis, MN
Wed Sep 18, 2013
Yes, you have options for getting a loan. You should work with a mortgage loan officer that is referred to you as being able to work with lower credit scores. The "big bank" loan officers may say no, but you have many options for obtaining a mortgage. If you want my referral, feel free to contact me directly. Best wishes!
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Elizabeth Fu…, Agent, Wayzata, MN
Wed Sep 18, 2013
Probably - it on he property you choose, your income and other assets. down payment and programs in the area you like....Feel free to call me at 612=986-4105
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Joey Torkild…, Agent, Vadnais Heights, MN
Wed Sep 18, 2013
Absolutely you can get a home loan! There are many options for someone like you, especially when you have a good chunk to out down. Give me a ring and we can talk more about the ways we can help get you squared away.

Joey Torkildson
Edina Realty
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Ryan Lange, Agent, Minneapolis, MN
Wed Sep 18, 2013
Hi Anthony,
I am a realtor in Mpls. I work with 2 trusted loan officers that would be able to find a loan program that would work for you with your credit score. Definitely call Matt Grant at Rubicon Mortgage Advisors - 763-370-0418 Let me know if I can help you with anything else. Thanks, Ryan Lange, 612-701-2778 ryan.lange
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