Tatters, Home Buyer in 78503

I was denied to get a loan because of my Fico score presently are 609, 612 and 653. And I heard in USDA 580 score is good enough to qualify, right?

Asked by Tatters, 78503 Fri May 13, 2011

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10
Jessica Bate…, Agent, Beverly Hills, CA
Thu Aug 1, 2013
You can get an FHA loan with under a 600 middle score with some lending institutions but not many. I would recommend finding a broker or service to help you locate a reputable lender that can approve your loan at a decent rate. I have client's who have got approved and received a good rate at The Lenders Network with FHA and VA home loans. If anyone can find you a loan they can!
4 votes
Leonard Ujkic, Mortgage Broker Or Lender, Carrollton, TX
Mon Nov 4, 2013
My bank lends down to a 580 credit score on FHA and 600 on VA. USDA has no minimun credit score requirements but you will need t oqualify with strong income via low ratios - give us a call 214-432-9047
1 vote
George Raymo…, Mortgage Broker Or Lender, Fort Worth, TX
Fri Apr 6, 2012
To answer your question accurately, as recent as 12 months ago I was able to go into the USDA GUS (Guaranteed Underwriting System) and pull out an approval with a middle credit score of 620, then 6 months ago it was 630, today it's 640. But here's the story. We lenders that are USDA Guaranteed can also manually approve your loan, but the file has to be sent to the USDA for secondary approval. Guaranteed Loans under the USDA means the underwriter has the authority to approve your loan without the USDA approval providing we get a GUS Approval. The other of the approval process is to have the USDA review a skeleton file which consists of the appraisal and a few more documents for Loan Guarantee. Apparently the lender you went to doesn't do manual underwriting. My suggestion if to work on your credit by reading my blogs below and get your scores up or find a USDA lender that does manual underwriting.

Best of Luck!

http://www.trulia.com/blog/george_raymondo/2011/08/myths_and…
1 vote
Matt, , Dallas, TX
Wed Aug 12, 2015
We do standard FHA & VA financing down to a 580 credit score.

5 Star Zillow Profile:https://www.zillow.com/profile/matt802/
0 votes
Leesa Sandov…, Mortgage Broker Or Lender, Plano, TX
Mon May 16, 2011
For FHA we can offers loans to borrowers with a 600 middle score. The USDA program through us requires a 640 middle score. I keep hearing there are lenders that can get it done with a lower score but haven't ran across anyone who has actually gotten one done.

Best of luck...please let me know if I can help.
Web Reference:  http://www.203krehabnow.com
0 votes
Scott Butcher, , Austin, TX
Fri May 13, 2011
Tatters,

I haven't found a lender that will do a rural, USDA loan under a 620 middle score. However, I do know of 2 seperate lenders that will do FHA loans down to a 600 FICO (96.5% LTV loan) & 580 FICO (95% LTV loan)respectively. More scrutiny will be placed upon your credit in these instances though since they are effectively 'portfolio' FHA lenders. Your prior lender is probably restricted to going down to only a 640 FICO as most Lenders will only go that low for an FHA (but not all).

I'm happy to answer any questions you might have and why you didn't recieve an approval with your previous lender. I hope you find what your looking for. Good luck.

Regards,

Scott Butcher
Mortgage Banker
Maker Capital Group, LLC
512-796-7738
scott@makercapitalaustin.com
0 votes
Don Groff, Agent, Austin, TX
Fri May 13, 2011
Hi Tatters,


Yes there are lenders that can go as low as a 580 on USDA. I work with several of them. Just because your scores are higher than that does not mean you automatically qualify. You still need to fit into their box so to speak. IE: no collection accounts within the past 12 months and you must have 3 trade lines in good standing on your credit report or that can be verified outside of your credit report.

Your best bet is to get in touch with a mortgage broker as they have access to many lenders so they can shop your loan around for you or in one case find a lender that can work with your credit situation. Also you want to speak with somebody who will take the time to get you moving in the right direction so if you cannot buy something today you are at least working towards that goal.

Best of luck to you.

Don Groff
REALTOR | Mortgage Broker | Consultant
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
listings@dongroff.com
0 votes
Tommy Burris, Mortgage Broker Or Lender, Baton Rouge, LA
Fri May 13, 2011
580 might be good enough for USDA..... But many lenders want a little higher scores.

Your mid score is 612. Most lenders need a 640. Do you have any credit card debt that we could pay down?
Paying down a credit card can get you from 10 - 50 points depending on how much of the credit line you utilize.

http://dallasloanguy.com/docs/about_credit.pdf

Above is a free e-book about credit. It explains FICO scores very well.

Let me know if I can answer some follow up questions.

Tom Burris
Mortgage Banker
DallasLoanGuy.com
(214) 763-4629 cell/text/nights/weekends
tomburris@dallasloanguy.com
Lending all across the Great State of Texas!!
0 votes
Suzanne MacD…, Agent, Morristown, NJ
Fri May 13, 2011
I am working with lenders here in New Jersey who can get a loan approved with a score as low as 580. Those are FHA loans. I would highly recommend you talk to a good local mortgage professional to identify any problems in your credit history and come up with a plan to address those issues. You should be able to do this relatively quickly and qualify for a home loan. Now is the time to buy (and that's according to Fortune Magazine,not me!) so take action and good luck!
0 votes
Don Maclary, Agent, Virginia Beach, VA
Fri May 13, 2011
Your scores are close, If you work with a local lender they may be able to guide you to quickly bring your score up. I have had a client with scores like yours and in days they fixed it with less then $300 applied in the right place.
0 votes
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