Home Buying in 12590>Question Details

nippy332, Home Buyer in Wappingers Falls, NY

can i get a mortgage with a 638 credit score. i would be a first time home buyer. i am a divorced and i have been cleaning up my credit 3yrs.

Asked by nippy332, Wappingers Falls, NY Tue Jan 22, 2013

there are 18 inquiries on my report. any suggestions would be great. a loan officer said i needed 3 buy lines. so i have a car payment and its only 5000. i got a credit card and some store cards.

Help the community by answering this question:


You can get an FHA loan with under a 640 middle score with some lending institutions but not many. FHA actually has a minimum FICO score requirement of 580. I would recommend finding a broker or service to help you locate a reputable lender that can approve your loan at a decent rate. I have client's who have got approved and received a good rate at The Lenders Network with FHA and VA home loans. If anyone can find you a loan they can.

Good luck
3 votes Thank Flag Link Tue Jul 30, 2013
Good afternoon nippy332,

In today's lending environment most Lenders want to qualify a mortgage loan with credit scores in the 640 to 680 range. So you are two points off of the "standard." There are programs that allow for scores lower. Here at my company we allow for scores down to 620, but the Underwriting criteria becomes stricter. That's why you want to be careful when Lenders answer your question by saying, "I can do that score no problem!" Because there WILL be a problem, and maybe a denial of your loan application after much heartache.

Here are some general principles for you about credit and then two links to the best sites for credit advice.

1. It can happen in 30 days, or 90 days or more depending on your overall credit, but you can get the two point boost in your scores if you simply lower the balances on your credit cards to just a little less than 50% of the available credit. So, if your limit with your VISA card is $3000.00 and you currently owe $1850.00, by paying the card down in one shot to, say, $1375, you'll likely get a boost of a few points. And you only need a few points.

While an action like this is no guarantee of success---there are many factors that go into a credit score---I have seen clients take this action and it works.

2. Your Mortgage Banker should be able to provide you with the results of a "Rapid Rescore" scenario wherein she advises you which, if any, actions you can take will improve your scores. If the loan officer you're working with didn't suggest that, I suggest you find a new loan officer to work with.

3. Recent activity on your credit report---whether on good accounts or bad accounts (collection, chargeoff, etc.) has immediate impact on your credit scores. So, if you recently paid off a collection account, that could be impacting your credit score negatively. Over time the score will improve as the collection account "ages out."

4. Number of trades: yes, this has an impact both on your credit score, but also, in this day and age, on your ability to be approved for a mortgage loan even with a good score. Typically we Lenders want to see a consumer has at least 2 to 3 accounts open and active for 12 months or longer.

I hope that helps you understand the rather complicated credit scoring system and underwriting requirements.

Here are the links I promised you:

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-…

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services

If you thought my answer was helpful, please give me a "Thumbs Up." Thanks!
1 vote Thank Flag Link Wed Feb 6, 2013
I just recently applied for a Construction Loan of 175500. I was denied because my credit score was 622 and the minimum has to be a 680. HELP!! I have 4 credit cards and right now I am using between 49% to 46% of the debt. I know to pay down the debt to 30% or less. I have several defaulted student loans so consolidated them all into one last year. On credit karma my score is 645 to 650. I don't understand the difference between the bank and what I use to monitor my credit. The loan officer said that she didn't know what else to do. I increased my credit card limits today but none of them are over $2000. I don't know what else to do to get my score to increase because I really need to get this construction loan.
Flag Tue Apr 12, 2016
Hi Nippy, You really need to have a Mortgage Banker pull a Mortgage credit report and have you fill out an application. You have 3 scores and the lender uses the middle score - that is because there are 3 credit bureau's - Equifax, Transunion and Experian. Different creditors report to different bureau's. While you are working on your loan application, don't apply for any credit at all. That way your scores won't drop in the process. Your score is good and if that's your middle or low, FHA will work for you. Keep in mind that they also look at your income and assets as well. Best wishes to you! Laura Rosales-REALTOR
0 votes Thank Flag Link Sun May 12, 2013
Too many inquiries, you should wait till some of those come off. inquiries, take up to 2 years to come off your cerdit report. If you can bring your inquiries down to 3-4 Your score could in crease by 40 points. Trust me !
0 votes Thank Flag Link Sun May 12, 2013
You may talk to a mortgage banker to get the right information about getting mortgage.
0 votes Thank Flag Link Tue Jan 22, 2013
Be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously, therefore since there are other factors besides credit, such as income, debt, etc., for a personalized answered visit with any licensed loan officer....
0 votes Thank Flag Link Tue Jan 22, 2013
Nippy -
Give Ross Ritter of Homestead Funding a call. He's local and I have used him many times with my buyers. He always comes through. 845-226-1010 rritter@homesteadfunding.com
Blessings - < Jim
0 votes Thank Flag Link Tue Jan 22, 2013
HI Nippy!

There are a lot of variable in getting a mortgage these day.. On credit alone you can qualify, but there are a lot of other factors to consider! Contact me to refer you to one of the best brokers in our area, that will be able to help you! best of luck!
0 votes Thank Flag Link Tue Jan 22, 2013

Please give a call to Brian Tom at 516-448-2434 or email him at btom@cliffcomortgage.com.

Not only will he have the answers to your questions; if anyone can help you, Brian can!

0 votes Thank Flag Link Tue Jan 22, 2013
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