My cousin is a resident in California and he wants to buy a property with a range of less than 200k. However,

Asked by Amanda, Los Angeles, CA Mon Jul 6, 2009

his credit score is only 527. Is there still a way for him to secure a loan with that score? Please advise. Thank you.

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William Pola…, Mortgage Broker Or Lender, Suwanee, GA
Mon Jul 6, 2009
I don't do loans in Cali, however, you'll need to find out what his other 2 scores are. Lenders go based on the middle of 3 scores. I would also recommend he not pay anything off until he talks to a lender first. Credit affects the score up to 12 months in most cases. If he pays off any accounts, he will have new collection account with a zero balance, further lowering his score. He may end up having to open a few credit cards and let them season for about a year. Make sure the balance is less than 50% of the credit limit and that they are not finance companies (banks that lend to people with bad credit) giving him the loan. He'll have to have a co-signer for better companies. He can also add himself as an authorized user to someone with good credit to increase his scores. He still has to have his own credit too. First Guarantee Mortgage is a wholesale company (speak to a broker) that does loans as low as 530 with 25% down (borrower's own funds in most cases). The question will be if he is financial ready to own a home. He'll have to do a lot of explaining.
1 vote
William Pola…, Mortgage Broker Or Lender, Suwanee, GA
Tue Jul 7, 2009
Unfortunately, a co-signor will not allow your cousin to qualify for a loan. He must qualify on his own. A co-signor will only help him income qualify.
0 votes
Yanni Raz, Mortgage Broker Or Lender, los angeles, CA
Mon Jul 6, 2009
These days its really hard to get a mortgage without good credit and good income.
Maybe he sould try to get a cosigner that will help him to purchase the property.

Good Luck
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California H…, , Los Angeles County, CA
Mon Jul 6, 2009

Your cousin CAN get a loan with that low score. Ask any lender for FHA loan, or .... go with a private investor if your cousin has a sizable downkpayment.

It may be tougher but not impossible. Good luck, call me if you think I can help. Be glad to.

0 votes
Alexandra Pa…, Agent, Montebello, CA
Mon Jul 6, 2009
Hi Amanda,

Your cousin definiately needs to talk to a lender. Here is the information of a good one. Al Rivera cell phone # (562) 587-5284.

He will be able to answer that question.
0 votes
Matt McClain, , Rancho Cucamonga, CA
Mon Jul 6, 2009
Hi Amanda.

There are many things that go into decisions by lenders to offer a mortgage to a potential buyer.
Without knowing several other factors along with his credit score and without knowing what on his credit report has his score at that level, i would need to discuss further with you to see what can be done.
There are ways to that may help him purchase such as adding a co-borrower and several fha style loans.

If you would like to discuss further or have any further questions, please feel free to call or email me.

Thanks and good luck!


Matt McClain
Axiom Real Estate/Axiom Lending
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