Looking to buy a townhome for my mother,credit scores are 590 , will put 20-25% down.I have had long stable

Asked by Callie511, San Antonio, TX Mon Aug 31, 2009

work history with good income. Any suggestions on how to obtain a loan?

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Luke Allison’s answer
Luke Allison, , Asheville, NC
Mon Aug 31, 2009
I have 2 options for you:
1) I can do a conventional loan with a credit score as low as 580. The advantage to this is that you avoid monthly mortgage insurance payments. However, with the score that low, the interest rate would be adjusted to account for added risk. This will result in either a higher base interest rate or a higher cost (discount points) for a low interest rate.
2) You can do an FHA loan and either get a definite approval depending on a down payment from 3.5% down to 10% down. The approval for an FHA loan is much more certain but you may have a monthly mortgage insurance premium.

Please feel free to contact me because there is nothing I need you to do to improve your current situation in order to qualify.

Luke Allison
Bank of America Home Loans
0 votes
Ana Ojeda, Agent, San Antonio, TX
Mon Aug 31, 2009
Dear Callie,

I have a great loan officer that I can refer you to. His office works on helping clients get their scores higher by just working on their credit, sometimes it can take a couple of months other times it can take up to a year, it all depends on the situation. This is not one of those credit repair ads that will just send letters and hope for the best..! they will actually erase stuff from the credit report that does not need to be there, by calling the creditors and the 3 credit bureaus.

I would like to help you in your search and in getting you ready to buy that great home for your Mother. Please do not hesitate to call me if you still need my services or if you are working with an agent already let me know if you still want the loan officers number so you can work on getting your scores higher.


Ana L Ojeda
Web Reference:  http://www.anaojeda.com
0 votes
Jerry Holcomb, , Dallas County, TX
Mon Aug 31, 2009
Hi Callie:
There are a few other questions that are needed to answer your question.
1, Who is going to be financing this property, you or Mother?
2, Which has the 590 credit score? and What is causing this score?
3, if you are financing the home and your score if 590 we also need to know your debt to income ration to qualify.
there is a program available that you can put down only 3.5% and get great interest rate fixed for 30 years. However, I would need more information,

I also suggest possible credit repair with a proven company to see about getting your score up.
If you have a bit of time to work on the score more options will open up for you.
You can reach me at jerry@DallasFHAloans.com
0 votes
Randy Pereira, Agent, Helotes, TX
Mon Aug 31, 2009

Steve has provided some great info to help point you in the right direction.
If your mother is going to live in the home, you may have other options that would keep more money
in your pocket versus spending 20-25% down.

I know a great loan officer, she works right here in San Antonio, TX and I know she can point you in the right direction. I'm not a mortgage specialist, but I have seen your situation before... and she was able to help them get a loan.

Feel free to drop me an email, if you would like her contact info. (Don't won't to post it here, without her permission of course.)
0 votes
Frank Bailey, Agent, San Antonio, TX
Mon Aug 31, 2009

You really should get in touch with a loan officer, they will let you know what you need to clean up on your credit report to get you ready to buy a home. Email me and I can give you a great loan officer that I use.

Frank Bailey
Web Reference:  http://www.fabailey.com
0 votes
Danny T Thom…, , Austin, TX
Mon Aug 31, 2009
With a score of 590, it is unlikely you will find any conventional financing available. I would urge you to have her have a professional look at her score to see if there are any derogatories that could be removed to bump her score to 620... once you have a 620, you should be able to get conforming financing with a reasonable rate. Otherwise, I do have a few owner finaincing properties... Let me know what she is looking for.

Web Reference:  http://DannyTHomes.com
0 votes
Steve Fergus…, , Austin, TX
Mon Aug 31, 2009
It sounds like you are looking for a non-owner occupied purchase since it appears that you will not be living there. Every lender that I am aware of now requires a 620 credit score for an 80% loan to value or less conventional loan on an investment property. I know that you are not renting this house out to anyone but the lenders still treat it this way. It might take very little to get your score above a 620 and I would be able to tell you more by taking a look at your credit report. Give me a call or send me an email when you have a minute and I will help you decide what direction we need to take. Thank you.

Steve Ferguson
0 votes
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