how can i get a home loan with a credit score of 540???

Asked by Lauren Rucker, 70605 Tue Jun 5, 2012

me and my fiance are looking to buy a home soon ...we hate renting!!! monthly income is about 4 grand..hes the only one a stay at home mommy!! so any advice or help would be really appreciated

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, ,
Wed Jun 6, 2012
You shouldn’t.

Why bet against yourself? Credit scores are odds, they are probability figures that result from running your credit activity through a scoring matrix. A low credit score indicates you will not pay back a mortgage in a timely manner. Trying to take a short cut is just betting against yourself.
1 vote
Darrell D. D…, Agent, Schertz, TX
Wed Jun 6, 2012
I don't know a single lender that will even consider lending with a score at 540. The score has real meaning in most cases - it means you don't do the right thing; it means you have debts you don't pay; it means you live outside your means. It's hard work to avoid paying obligated debts enough to get a score so low - so most banks won't give you tens of thousands of dollars knowing you have a track record of never intending to pay them back.

Spend 12 months tightening your belts and paying off debt to raise your score and prove you won't become a foreclosure statistic and then you will be in a better position to seek a mortgage. Good Luck.
0 votes
you shouldn't even have responded with a comment like that!
Flag Fri Jul 13, 2012
Daniel, , Baton Rouge, LA
Wed Jun 6, 2012
to be frank, if you are making 4 grand a month, why have you not paid off your bad debts on your credit report.

go to

a free service, pull all 3 credit reports and REPAY those who have ALREADY loaned you money...

Then your credit score will increase
0 votes
Margaret Rod…, Agent, Denham Springs, LA
Wed Jun 6, 2012
Have you tried a lender that has a home buyers club? They can help you get your credit up a bit so you will be able to qualify. It might take 6 months to a year but it works!

Or what about an IDA? This is an account that gives you matching funds towards a home for free. It's a real program in Louisiana that can give you up to $4000 dollars. You have to go to financial classes and there are a few other hoops to jump through but again it works. You can combine the two programs even.

Call me directly and I can give you specifics 225-505-8725 or email
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