With a credit score of 586 can you still qualify to purchase a home?

Asked by Tammy Whipple, Douglasville, GA Wed Feb 5, 2014

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Elizabeth, Renter, Ward 3, Reno, NV
Mon Jun 13, 2016
Hi Tammy,

I want very much to buy a home and in late February my scores were 539 - Experian, 565, Transunion and 521 Equifax. I retained White, Jacobs and Associates and am working with Joe Camacho and here in Mid June, my Transunion score is 600, Experian is 586 and Equifax is about 570 (have not checked it recently). They have deleted 22 late items, 19 collections, 30 inquiries and 5 public records.

I was very hesitant to contact them because I have heard so many terrible things and read so many terrible things about credit repair firms, but they are credit attorneys. They will review your credit for free and then will contact you to discuss their program and how they can help you which takes about one hour or so. They will also give you instructions to follow to keep you on the path to home ownership or whatever you need in life. They really educate you and teach you how to manage your credit in the future. I know I have learned a lot.

I hope this helps you. I did a lot of research first before I found them and read different websites and reviews before I contacted them.

0 votes
Ericka Kay T…, Agent, Smyrna, GA
Sun Apr 20, 2014
Hello Tammy

Feel free to contact me as I am a buyers agent for this area. I can give you some lenders to contact to discuss your credit score. My team and I will love to assist you with your Real Estate Goals.

Ericka Kay
Keller Williams Realty
0 votes
, ,
Wed Feb 5, 2014
Hi Tammy,
It MIGHT be possible, but its very likely that you will first have some work to do on your credit. For an FHA mortgage, most lenders have required a 640+ credit score since 2008/2009.

Prospect Mortgage is one of the few direct lenders to offer an FHA 580-639 FICO loan program. Credit profile is a major factor in a mortgage approval. Generally, there should be no late payments, new collections accounts/charge-offs/liens/judgments in the last 12 months. It is required that all open collection accounts must be paid in full if their cumulative balances exceed $1,000.

The 3.5% minimum down payment can be from the borrowers own funds or it can be gifted from a family member. Two months of reserves for the PITI (Principal + Interest + Taxes + Insurance) payment + HOA Dues will be required. This must be from the borrower’s own funds and not a gift. FHA loans will allow a seller contribution toward closing costs/pre-paids of up to 6% of the sales price.

You will also need a verified 12 month on time housing history. This will need to be verified by either 12 months of cancelled check or by a Verification of Rent from your management company.

Once you are ready to purchase, working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com to get started.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203(k) Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
Web Reference:  http://www.rodneymason.com
0 votes
Dan Tabit, Agent, Issaquah, WA
Wed Feb 5, 2014
Your score alone doesn't mean you can or can't get a loan, but your score will limit the options and make it tough. Take some time to review your report and find out why it's so low. If you want to buy a home, the time and energy you put into fixing not only the score the but issues that caused it will be well spent.
Many good people went through some tough times. If you can solve the issues you'll improve your chances of getting approved and lower the rate you may have to pay.
0 votes
Keith Jean-P…, Agent, East Brunswick, NJ
Wed Feb 5, 2014
Barely, typically FHA regulations are a minimum of 580 for credit score, but in that range there are other factors that are necessary. I would suggest speaking with a mortgage broker for further details on your qualifications. Best of luck!
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