Mortgage companies that will lend to a married couple with credit under 620

Asked by Bradford Manton II, Brattleboro, VT Sat Feb 16, 2013

we would like to find a home around $150,000, her credit is very good but mine is over 600 but about 620 are there any lenders that can help us? We would like an FHA and we have money down, we are first-time buyers!! Someone please send us some answers!!

Help the community by answering this question:

+ web reference
Web reference:


John Hatton’s answer
John Hatton, Agent, Brattleboro, VT
Sat Feb 16, 2013
I'd suggest that you make an appointment at the Windham & Windsor Housing Trust - they can help you find programs that might work for you, as well as work with you on repairing your credit.
1 vote
, ,
Sat Feb 16, 2013
HI Bradford,

I have good news. Brattleboro is an area that's eligible for the no money down USDA Mortgage.

The county income limit for the area is $75,600 for a household of 1-4 people and goes up if you have more people living in the home.

While most lenders have increased the minimum credit score requirements to 640 or better I can still do these loans down to a 620 so you should be good to go.

One of the best things about this mortgage is the monthly mortgage insurance is substantially less than an FHA or conventional mortgage and that's with no money down.

Here's an example: An FHA mortgage of $155,000 is going to have a monthly mortgage insurance payment of $161.45 & that's going up in April but on a USDA mortgage it's only going to add $51.66 to your monthly payment.

The other nice thing is you can actually roll your closing costs into the loan as long as the appraised value supports it.

Please feel free to contact me for more information or help. You can also find info on my USDA Mortgage website by clicking the link below.

John Burke
Senior Mortgage Banker
Peoples Bank & Trust
1 vote
Desna Mandich, Agent, Putney, VT
Tue Apr 2, 2013
Have any of the mortgage brokers you have spoken to tried to assist you in improving your credit score? If you can wait between 4-6 months to buy, you may be able to work with them on improving your score and qualifying for better loans. I would highly recommend working with a lender who can help you in this way. You will get a better interest rate and the short wait will pay off in the end!
0 votes
one, , 76155
Sat Feb 16, 2013
First question. Do you need your income to qualify? If her credit/income/ratios are good, you may not need to be on the loan.

There are options for you with those scores. However, I suggest working with a loan officer to bring your scores up. Many times scores can be brought up quickly by pay down debt. With higher scores, you will not be confined to one or two loan products. I wish you the best of luck.
0 votes
Christine Le…, Agent, Brattleboro, VT
Sat Feb 16, 2013
Hello Bradford,

If you are a first time buyer you may qualify for the USDA (old Farmer's Home) loan and they do not look at credit score as heavily as other lenders. It is a federal first time buyer program. They will look to see if you have paid all your bills on time for the last 12 months. There are income limits and they do want to know what has affected the score. It is 100% financing but you also may have a downpayment. If you want to know if you qualify, go to the USDA website and check out the income limits for the Driect program.

Call or email Deb Boyd 802-257-7878 x 101 "Boyd, Deborah - Brattleboro, VT"

Pleae feel free to call for a more indepth conversation about the other programs that might work for you. I have been finding homes for first time bueyrs for 25 years now and would love to help.

Chris Lewis
0 votes
Search Advice
Ask our community a question
Home Buying in Brattleboro Zip Codes

Email me when…

Learn more