Will a credit score of 586 get me a home?

Asked by Darlene, San Antonio, TX Mon Jun 17, 2013

I have a credit rating of 586....and found out I qualify for a program to purchase a mobile home, but I did not like the options they have since I could not move into a mobile home community. Is there a program that may qualify me to purchase a home?

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Rita Parker’s answer
Rita Parker, Agent, San Antonio, TX
Sun Jun 23, 2013

The best thing to do is work on your credit score. Although there is a minimum score, the lower the rating the higher your interest rate could be. You don't have far to go. I've helped a lot of people that were just shy of a "good score for a home loan." Don't give up, set your goal and make sure you're working very closely with your realtor. :) Call me if you don't have one yet. I'm here to help. 210-912-3244;
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Jason Campbe…, Agent, San Antonio, TX
Mon Jun 17, 2013
The quick answer is yes.. If you have a down payment and/or reserves (money in your account, 401K or other asset that you can access that is equal to a few months worth of payments) then yes.. you can actually get and FHA loan! We have closed them down to as far as a 560 score. I have the best lenders on the planet! :)

Give me a call, shoot me a text, or send me an e-mail... I'll send you to just the right place to get you going.

Jason C Campbell
Platinum Top 50 Finalist
Option One Real Estate
web: http://www.SAHomeExpert.com
0 votes
Roland Gonza…, Agent, San Antonio, TX
Mon Jun 17, 2013
Work on bringing the score up to around 620 or better before you even think of buying. Unless you work with an investor that is willing to do owner financing - but you will need a much higher down payment and pay a higher interest rate.

Roland Gonzales
e-Casa Realty
0 votes
Curly Sue, , Texas
Mon Jun 17, 2013
There are lenders that do 580+ FHA...how much do you have saved for down payment?
0 votes
Bertha Garza, Agent, San Antonio, TX
Mon Jun 17, 2013
Darlene , 586 is a bit lower , however I do have a lender there minimal credit score is 590 your shy about 4 pts , call me
0 votes
Chuck Berry, Agent, San Antonio, TX
Mon Jun 17, 2013
These days (June 2013) the magic number seems to be approx 640 for a FICO score to qualify. Continue paying off debt and strive for that number. You're very close, don't give up hope. I just closed with one buyer who spent 6 months getting his credit straight, but now he's a brand new home owner!

Please let me know if I can be of any further assistance!

"I'll Find You The House, You Make It A Home!"

Cornel "Chuck" Berry, REALTOR®, (USAF Retired),
Real Estate Consultant, Lic# 0615965,
Coldwell Banker D'Ann Harper, REALTORS®,
18756 Stone Oak Pkwy., Suite 101.
San Antonio, TX 78258.
Cell: (210) 683-1157
Direct: (210) 483-7552
Fax: (210) 483-4679
Email: cberry@cbharper.com
Web Page: http://www.chuckberryrealtor.com

NOTE: Texas requires REALTORS furnish consumer friendly information about Brokerage Services - click on the link:

The best compliment to a REALTOR is a referral!
If you know anyone with a Real Estate need, whether buying or selling, anywhere in the world, I can help! Get a **$50.00** referral fee for each buyer/seller you send to me, paid at closing!
0 votes
Joseph Irons, Home Buyer, San Antonio Road, Austin, TX
Mon Jun 17, 2013
Only under owner finance. There are a lot of investors like myself who could help you
0 votes
Joseph, can you email me information on that please. csdeans95@gmail.com
Flag Fri Oct 25, 2013
Joseph I would like to find out more about having a home financed by an investor, can you please call me?

Flag Mon Jun 24, 2013
Don Groff, Agent, Austin, TX
Mon Jun 17, 2013
You need to work on your credit first. Find a lender who will take the time to work with you and get your credit moving in the right direction. Understand what happened and make sure you are doing what is necessary to get your credit to where it needs to be.

It may take a while. Go back and look at my past answers on how to rebuild your credit. They are pretty extensive and will definitely get you moving in the right direction.

Hope this helps.

Don Groff | REALTOR® & Mortgage Broker
Austin Real Estate Pros & 360 Lending Group
o 512.669.5599 | m 512.633.4157 | listings@dongroff.com
websites: http://www.AustinListed.com | http://www.360LendingGroup.com
Web Reference:  http://www.AustinListed.com
0 votes
, ,
Mon Jun 17, 2013
Good afternoon Darlene,

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.

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.

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

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