litekeeper20…, Renter in Grand Rapids, MI

Need to move.....can I get a FHA loan with a credit score of 522?

Asked by litekeeper2000, Grand Rapids, MI Sat Jun 8, 2013

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7
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Mon Jun 10, 2013
Good morning litekeeper2000,

We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.

It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.
http://www.consumer-action.org/

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.
http://www.consumer.ftc.gov/articles/0058-credit-repair-how-…

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes
Jason Lash, Agent, Grand Rapids, MI
Mon Jun 10, 2013
I am sorry but this just isn't going to happen.

The good news is that it isn't as hard or will take as long as you think to fix your score. Some people can come up as much as 100 points in a month or two.

If you need help please contact me through my web site.

Jason Lash
The Lash Group
Prudential Preferred Realtors
Office: 616-447-7045
Http://www.GRHomes.Net
0 votes
Brek Schutten, Agent, Grand Rapids, MI
Sat Jun 8, 2013
I would be surprised if you would be able to get financing based on a 522 credit score unless you have very high income and down payment. If you would like to get financing, I would suggest that you work on repairing your credit. There are services out there that can help you repair your credit or you can research how to work on it yourself.
Web Reference:  http://www.BrekSchutten.com
0 votes
Kawain Payne, Agent, Seal Beach, CA
Sat Jun 8, 2013
I urge you to try and improve your score before you start trying to get a loan.

You should have a score of 640 for a FHA loan.

Some lenders may approve you with a score below 640, but you surely will not get the best prevailing rates and terms.

Best of luck to you.

Kawai Payne, Realtor
0 votes
litekeeper20…, Renter, Grand Rapids, MI
Sat Jun 8, 2013
I wonder what the chances are of getting something off your credit report if you have a letter from the judge stating you were not responsible for the mortgage payment. My ex let the house go back to the bank and I couldn't get my name off the mortgage, but the judge gave me a letter stating he was solely responsible for the mortgage.
0 votes
Haig Istambo…, Agent, Rochester, MI
Sat Jun 8, 2013
Hello,

That credit score is to low. The lowest acceptable credit score I have heard of was 580, but most lenders require at least a 620. But all of that said different lenders do have different criteria, but I have never heard of a 520 score being acceptable.

Go meet with a lender and see what you need to do to get your credit score up and hopefully qualify for a mortgage in the near future. That is the best thing you can do for yourself.

Good Luck,

HAIG
(248) 379-6547
realtorhaig@aol.com
0 votes
Ron Thomas, Agent, Fresno, CA
Sat Jun 8, 2013
They also look at your Debt to Income ratio.
But, probably not.
0 votes
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