Do i qualify for a mortgage if my credit score is 587?

Asked by ive mar, North Miami Beach, FL Thu Feb 11, 2010

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Jack Campbell, Agent, San Diego, CA
Fri Feb 12, 2010
Let's start with the Facts: As of March 6th, 2009 it is now required for you to have a 620 fico score to qualify for both FHA and VA financing which are generally the most widely used programs for borrowers with less than perfect credit. There may be other financing you can find in the private money (hard money) sector but those options will typically require large down payments of 30% - 50% or more.

That being said, don't be defeated. Credit scores are mostly indicators of how you have performed with your credit in the recent history (24 months). I have helped clients focus on improving their scores from where you are at now to the low 700's in less than 24 months.

First bit of advice is go to http://www.annualcreditreport.com and get a copy of your report for free. Once you have your report, highlight all the collections and pay those off first. Be sure to get something from the collection company in writing that you have paid it just in case it doesn't get automatically removed from your report. Lastly begin paying down your installment debt (credit cards). If you focus on these basic steps over the next 2 years you will find your scores easily within the required range, but also you will get better interest rates as a result of the new higher scores and definitely qualify for more home because your debt load will be lighter.

For more basic mortgage information or to contact me directly, please visit me at http://www.campbellsd.com.

Jack Campbell
Clarion Mortgage Capital, Inc.
Mortgage Advisor
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Fri Feb 12, 2010
lvia - I have one mantra I often use.....just because you can, doesn't mean you should.

Your scores are low for a reason. Before taking on new debt, I'd work on cleaning up the debt you already may have, and the low scores first.
The only exception would be if that low score was the result of something catastrophic that occurred in your life that can be explained........... otherwise...work on improving your scores.

Good luck and best wshes............
0 votes
Kimberlee He…, , Weston, FL
Fri Feb 12, 2010
It is a challenge with your score but give me a call to further discuss, I work the West Miramar area.
Kim Hernandez
Coldwell Banker
754-244-6169
0 votes
ANDREW OLLICK, Agent, NAPLES, FL
Fri Feb 12, 2010
Hi Ivia!

Yes you can qualify for a loan at 587!

There are a few lenders who are still underwriting FHA loans down to a 580 credit score. There need to be compensating factors but a good Mortgage broker can go over those details with you. If you would like to contact me I can explain their program with you further.

Take care,

Andrew Ollick
Amerivest Realty
Faith Home Loans
800-801-6080 (outside of FL)
239-206-4500

eo@oceanhomesrealty.com
skype: napleshomes

PREQUALIFY FOR A LOAN: http://www.faithhomeloans.com/express.html
0 votes
Kathy Weber, Agent, Murrieta, CA
Fri Feb 12, 2010
Ivia,

Even with special loan programs being offered, your FICO's are too low to qualify. I would suggest pulling your credit report and finding out what "dings" are on there affecting your scores.

Many times, there are at least 1 or 2 that should have been removed or have been settled. Even by removing those few, it may boost your scores up enough to at least hit the 620.

Take the time to get your FICO's up, savings, & down payment together and then get your loan in place. It will save you time and frustration when you're ready to begin your home search.

Good luck!
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Fri Feb 12, 2010
It will be difficult to qualify for a mortgage, but even if you could obtain a loan, your rate will be higher due to your lower credit score.

I recommend you work on getting that credit up to at least 620.........then make sure you have savings, besides your down payment.........and then, assuming you have enough income...........you will be ready to look into buying a home.

Best wishes..............
0 votes
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