Credit score of 520 is getting a home loan possible?

Asked by anniealvarezlove, San Antonio, TX Mon Apr 29, 2013

Currently in a owner finance home and paying an interest rate of 17%. Desperately needing to get out of this loan. I know that loan may not be favorable however well take anything lower than current rate.

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Shirley Lee, Agent, Odessa, TX
Tue Apr 30, 2013
The lowest score I know of that would get you a mortgage loan is 580, but the entire credit picture must be taken into consideration, not just score. Debt to income ratio, for example. Length of time with current employer. You need a good mortgage broker or banker to work with you on improving your overall credit picture and a score of at least 580. You should inquire first at whatever bank or credit union you have your checking or savings account with. If they can't help you they should be able to counsel you on your credit picture. Diligence in addressing any negative items on your credit report can improve your score pretty rapidly.
Shirley Lee, Broker Associate, APEX Real Estate Co., Odessa, Texas
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I've been paying rent for the last 8 years and the. Rent doesn't help in building your credit .
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The Falcon G…, Agent, Midland, TX
Mon Apr 29, 2013
There are some lenders, such as RH Lending, who specialize in financing mortgages for those with lower scores, but it does cost the buyer a heftier down payment along with a long list of criteria. My advice is always to use that money to work on bringing their crefit to at least a 640 and take adbantage of a traditional FHA loan with better interest rates. While this won't happen overnight, it is worth the wait bevause it's usually "quick" fixes that lead to regrettable decisions.
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