I have plenty of money to put down on a new home, 10k plus. My credit is below a 600 according to my bank and I cannot get approved.

Asked by Martha Williams, Birmingham, AL Mon Mar 25, 2013

Is there anyway I can get approved for a home loan with 10% down and bad credit? There has to be some option we really need to get into a home ASAP!

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Answers

13
Isaiah Y., Agent, Rockford, IL
Tue Mar 1, 2016
You need to contact Home Loans For All. We send most of our clients there. They'll be able to find you a lender(s) that can get you your pre approval. They've been a blessing for our clients and we recommend them to everyone.


http://www.homeloansforall.com
8 votes
Isaiah Y., Agent, Rockford, IL
Sat Mar 5, 2016
Reach out to homeloansforall.com. We send our clients to them regularly. They'll be able to help I have no doubt. Here's a link to them.

http://www.homeloansforall.com
3 votes
lendersnetwo…, Agent, Plano, TX
Mon Mar 25, 2013
Call me Martha, I can get you a pre approval in AL with under a 600 score but we need to talk first.

Randy
http://www.thelendersnetwork.com
214.984.1213
3 votes
Invstnlfp, Home Buyer, New York, NY
Sun Mar 6, 2016
I am state and federally licensed to write mortgages in 31 states for a top direct lender in the mortgage industry who offers conventional, FHA, VA, and USDA loans. We keep your info private not broker it out and we go down to a 550 credit score for VA and FHA loans.. Are lowest score we accept for government loans are 550 when most lenders require a 620 and brokers a 580. You have to have two years of income with a score over 550 with bankruptcies discharge date 2 years and over. We have basic guidelines and a pretty easy process. Feel free to text me or call me anytime up to 10:00pm Eastern with any questions.
Brian Young 214-797-3479
NMLS 902687
0 votes
Mike Shrader, Agent, Murfreesboro, TN
Tue Mar 1, 2016
Traditional savings banks don't always have the best loan rates and often have stringent policies. Mortgage brokers and companies beyond banks can sometimes allow more wriggle room so long as you can put lots of cash down. There may also be special types of loans you might qualify for.

But across the board, improving your score is often the best way to get a good loan. Is there any way, you think, you could hold off a few months and use that cash to pay off some debts?
0 votes
Kawain Payne, Agent, Seal Beach, CA
Mon Sep 23, 2013
Credit score is a BIG factor in getting loan approval. There may be some lenders willing to approve you with low scores BUT you will not get the best rates and terms.

I urge you to work on improving your scores. With good scores and a good down payment along with low debt you will be in very strong shape to secure financing with rates and terms you can live with.

Best of luck to You!!!
Kawain Payne, Realtor
Prudential California Realty
0 votes
Kawain Payne, Agent, Seal Beach, CA
Mon Sep 23, 2013
Credit score is a BIG factor in getting loan approval. There may be some lenders willing to approve you with low scores BUT you will not get the best rates and terms.

I urge you to work on improving your scores. With good scores and a good down payment along with low debt you will be in very strong shape to secure financing with rates and terms you can live with.

Best of luck to You!!!
Kawain Payne, Realtor
Prudential California Realty
0 votes
Rich Homer, Agent, NAPLES, FL
Tue Apr 9, 2013
Best next action is to ask a local Mortgage Broker by clicking "Find a Pro" in the main menu at the top of this website. http://www.naplesrealestateguys.com/
0 votes
marc cohen, Both Buyer And Seller, Birmingham, AL
Sat Mar 30, 2013
Martha,

We can help - we do lease to buy options with 10% down -

Call me if you would like more information - 205-440-3123.
0 votes
Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Tue Mar 26, 2013
To begin the process of working on your credit, you would need to contact each of your creditors directly to see what your options are. Paying off derogatory debt will help improve your credit score in the long run, but not immediately.

With collection accounts, most of the damage is done when they are initially placed on your credit report. Some collection companies are now reporting you are late each month the debt goes unpaid. This continues to drag on many people’s credit scores each month until the debt is paid in full. Until you do that, your credit score has little chance of improving.

In exchange for paying the collection account in full, you can try to negotiate to have them completely remove the derogatory item once the payment is received. Some collection agencies will do this, while others will not. You will just have to ask each one and see. If they will not remove it, just having it paid and closed will help in the long run.

All liens and judgments will also need to be paid in full. These impact the title position of a mortgage so they must be satisfied.

To build positive credit, you typically need to have 2-3 trade lines reporting for 12-24 months. There should be no late payments or other derogatory items reported in the last 12-24 months. On your Revolving credit accounts, your outstanding balance on your monthly statement should not exceed 30% of the credit limit.
0 votes
Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Tue Mar 26, 2013
Hi Martha,
For an FHA mortgage, most lenders require a 640+ credit score for the last 2-3 years now.

Prospect Mortgage is one of the few direct lenders to offer an FHA 580-639 FICO loan program. Credit profile is a major factor in a mortgage approval. Generally, there should be no late payments, new collections accounts/charge-offs/liens/judgments in the last 12 months. It is required that all open collection accounts must be paid in full if their cumulative balances exceed $1,000.

The 3.5% minimum down payment can be from the borrowers own funds or it can be gifted from a family member. Two months of reserves for the PITI (Principal + Interest + Taxes + Insurance) payment + HOA Dues will be required. This must be from the borrower’s own funds and not a gift.

Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes
Spencer Evans, Home Buyer, Birmingham, AL
Tue Mar 26, 2013
Hello Martha, my name is Spencer contact me and we can help you with your credit situation, I am local in Birmingham, pleae email me at sjevans8201@gmail.com.
0 votes
Lenda Wagner, , Birmingham, AL
Mon Mar 25, 2013
Hi Martha;
I am a real estate broker here in Birmingham. I know some pretty knowledgeable and creative lenders in the area. I think we can get this done. Call me at 205-432-9430.
0 votes
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