Home Buying in Atlanta>Question Details

Joy Fitzgera…, Renter in Atlanta, GA

is 617 a good credit score to buy a home?

Asked by Joy Fitzgerald, Atlanta, GA Thu Sep 27, 2012

Help the community by answering this question:


Rodney Mason’s answer
For an FHA mortgage, most lenders require a 640+ credit score for the last 2-3 years now. 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% down payment can be from the borrowers own funds or it can be gifted from a family member. Getting Pre-Qualified is the only way for you to find out your options.

To get Pre-Qualified you purchase, you can submit your request online at http://www.rodneymason.com.

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

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
1 vote Thank Flag Link Fri Sep 28, 2012
Check out The Lenders Network, they have lenders that can go down to a 580 credit score. Good luck!
2 votes Thank Flag Link Tue Jun 9, 2015
In order to get a mortgage loan, lenders take into consideration your credit history, employment history, radio of debt to income, etc. Start by shopping around for a mortgagte broker that can answer all your questions and give at least two financial options on your first meeting.

Best of Luck,

Maria Cipollone

2 votes Thank Flag Link Sat Oct 6, 2012
FHA loans provide great assistance to many first time home buyers by offering mortgage loans with lower down payments. While this is a benefit for many people, recent changes in policy may have put the loans just out of reach for some would-be homeowners with questionable credit history.
Credit History and Score Requirements
For those interested in applying for an FHA loan, applicants are now required to have a minimum FICO score of 580 to qualify for the low down payment advantage, which is currently at around 3.5 percent.
If your credit score is below 580, however, you aren't necessarily excluded from FHA loan eligibility. Applicants with lower credit scores will have to put down a 10 percent down payment if they want to qualify for a loan.
So if you're planning to buy a house, and your credit score doesn't meet the minimum, you should weigh the advantages and disadvantages of putting down a larger down payment or using those funds to try and improve your credit score first.
Benefits of an FHA Loan
The reason why FHA loans are so popular is because borrowers that use them are able to take advantage of benefits and protections unavailable with most traditional mortgage loans. Loans through the FHA are insured by the agency, so lenders are more lenient. Here are a few benefits you can enjoy with an FHA loan:
Easier to Qualify
While most loans exclude applicants with questionable credit history and low credit scores, the FHA makes loans available with lower requirements so its easier for you to qualify.
Competitive Interest Rates
You've heard the horror stories of subprime borrowers who couldn't keep up with their mortgage interest rates. Well, FHA loans usually offer lower interest rates to help homeowners afford housing payments.
Lower Fees

In addition to lower interest rates, you can also enjoy lower costs on other fees like closing costs, mortgage insurance and others.

Bankruptcy / Foreclosure

Just because you've filed for bankruptcy or suffered a foreclosure in the past few years doesn't mean you're excluded from qualifying for an FHA loan. As long as you meet other requirements that satisfy the FHA, such as re-establishment of good credit, solid payment history, etc., you can still qualify.
No Credit

The FHA usually requires two lines of credit for qualifying applicants. If you don't have a sufficient credit history, you can try to qualify through a substitute form.
For many home buyers, using an FHA loan can really make the difference between owning your dream house comfortably or turning it into a financial nightmare. The FHA provides a wealth of benefits for applicants that qualify, so make sure you're making full use of them.
1 vote Thank Flag Link Tue Jun 9, 2015
Randy Roberts stop spamming Trulia. The Lendersnetwork is a scam buyers beware. They hire people to creat fake profiles and spam Truila.

Look at Randy Roberts profile. He has 100s of spam comments left on blogs.
1 vote Thank Flag Link Thu Oct 31, 2013
Guys notice that was a very old post, my credit score ending being around 680 and I purchased my home about 5 months ago in June.
1 vote Thank Flag Link Wed Oct 30, 2013
Most lenders/loan product usually want 640.. but I have some lenders that they will accept lower scores. Feel free to call at 678-613-5636
1 vote Thank Flag Link Tue Oct 29, 2013
Well I guess my boyfriend and I will never ever be getting a house. That is a pipe dream that I can give up on.
1 vote Thank Flag Link Mon Jul 22, 2013
My score is 614, the loan company recommended that I pay all credit cards balance down low . Example for $1000.00 credit card, get the balance down to $32.00.
1 vote Thank Flag Link Sat Oct 6, 2012
Good evening Joy,

Most Lenders today require a minimum score of 640 for mortgage financing although some Lenders will allow 620 scores (if you jump through the appropriate and many and varied hoops).

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.

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
1 vote Thank Flag Link Thu Sep 27, 2012
My score is 617 all my accounts are never late and yet my credit score never seems to go up any idea why?
Flag Sun Apr 20, 2014
Hi Joy,

Regina is right, I also heard that Wells Fargo offers loans to customers with that credit score.

Good luck!
1 vote Thank Flag Link Thu Sep 27, 2012
Wells Fargo goes down to that credit score. Give me a call so we can talk further.
1 vote Thank Flag Link Thu Sep 27, 2012
Most lenders/loan product usually want 640.. but some mortgage brokers may have products to accommodate lower FICO score.

You just need a few more points. Talk to your loan agent on what to do to get the score up and do a rapid re-score..
1 vote Thank Flag Link Thu Sep 27, 2012
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