I have been building my credit for two years but credit score is only a 598. Can I get a 45K home loan with this credit score?

Asked by Alexis Ann Jewell-Seymour, Boston, MA Tue Sep 25, 2012

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Heath Coker’s answer
Heath Coker, Agent, Falmouth, MA
Fri Sep 28, 2012
I would ask a local bank that is close to the property.
If there is lots of equity in the property for the lender, you will have a better chance.

Local banks may have some programs that the national lenders do not.
Also, if this is for a mobile home (because the amount is so low), that is a special kind of loan.

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Kawain Payne, Agent, Seal Beach, CA
Wed Sep 26, 2012
The min. score now for FHA financing is 640.

You should keep working on getting your score higher. You should also focus on paying off debt.

Your FICO score is one factor in getting a loan, but your debt to income ratio is also very important, so paying debt down will be a great benefit.

Best of luck to you!!!

Kawain Payne, Realtor
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Charles Came…, Agent, Everett, MA
Tue Sep 25, 2012
That would be challenging however there is always a way. First step would be to talk to a loan offer/Bank. They would give you great advice towards helping you with your goals.

You're the right direction by asking professionals.

Keep going!
0 votes
Kevin Vitali, Agent, Tewksbury, MA
Tue Sep 25, 2012
598 is a difficult score to work with. Talk to a lender. I believe the fha has a program for lower credit scores, unfortunately not many lending institutions offer that program
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Annette Law…, Agent, Palm Harbor, FL
Tue Sep 25, 2012
Your challenges are significant.
Credit score of 598 is difficult but not impossible to deal with.
Now, a $45,000 mortgage does present a problem.
Most traditional lenders will find the cost of processing the mortgage will exceed any profit they can make.
What can you buy for $45,000?
A home requiring SIGNIFICANT repair...you don't have the resources to complete the repairs
A condo? Most lender will not finance a condo without a dramatic down payment.
A manufactured home? Very few, if any lender, will finance.

I would recommend you stop into a lender in your area who has a history of investing in the local economy through small business loans and mortgages to local buyers. Consult with their lending agents to confirm you are on the right path and please choose local lender rather than than Bank of America, Citi, Wells Fargo, Chase or Never Ever Bank of Clearwater Fl. Simply enter your zipcode or city and chose a "A" or "B" graded local lender.

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, FL
0 votes
Masha Sender…, Agent, Newton, MA
Tue Sep 25, 2012
Most likely, no. Have you tried working with a credit repair agency? They can get your score up pretty fast (6 months?)
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Ingrid Johns…, Agent, Brockotn, MA
Tue Sep 25, 2012
A Mortgage Under 50K can be difficult, Square Footage of the Property will play a big part.
Your Credit Score well that depends on the Lender and risk level you fall into
All though FHA does do that Score it still depends on much more than this.
Your credit History is important.. You may want to check out creating traditional trade lines.
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