Home Buying in Greensboro>Question Details

Wendy Lambert, Home Buyer in North Carolina

my credit score is only 540 can i stiill buy a home in greensboro nc

Asked by Wendy Lambert, North Carolina Fri Nov 9, 2007

Help the community by answering this question:


It may be possible. The important thing to do is to speak with a lender and look at the whole picture. Your credit is an important aspect of buying but they will also need to look at other factors, income,work history, etc. You also want to discuss with a lender exactly what is on your credit to cause your scores to be so low.
Depending on the situation you may be able to get your scores up. Increasing your chances of getting preapproved.
0 votes Thank Flag Link Wed Jan 14, 2009
Yes, it is possible. FHA is not credit score driven. With your score being a 540, the file will have to be manually underwritten. You will need a lender, not a broker for this sitaution. A lender will underwrite the file in house with their underwriter. Of course the approval will still depend on your debt to income ratio, employer, assets and documenting it all with bank statements, W2's and check stubs. Best of luck.
0 votes Thank Flag Link Fri Jan 2, 2009
The only way to find out is to contact a mortgage lender. Lenders will talk to you and check out your situation at no cost to you. If they cannot help you, they will be able to tell you the best things to do to bring your score up. Good luck.
0 votes Thank Flag Link Mon Nov 12, 2007
Again, FHA is not the only answer. VA is not credit score driven. And there are other products also available but again the main question will be what is the reason behind the score.
0 votes Thank Flag Link Mon Nov 12, 2007
A 540 may qualify for a FHA loan. Most other loans will be highly unlikely. Please consult with a reputable lender.
0 votes Thank Flag Link Fri Nov 9, 2007
Pam Winterba…, Real Estate Pro in Danville, VA
It is possible. The main issue is going to be why is the credit score 540. FHA and VA loans are not credit score drive products. I would be more than happy to discuss your individual situation over the phone, via my secure website, or in my office if you would like.

One thing to make sure is SHOP for the mortgage. Make sure you ask for a Good Faith Estimate and Truth In Lending Statement from anybody that quotes you rates. APR on the TIL will allow an "apples to apples" comparison.
0 votes Thank Flag Link Fri Nov 9, 2007
The best thing that you can do is to talk with three different lenders and find out if you can purchase a home. Some credit reports have serious infractions and some have less serious infractions. As I am a realtor and not a lender. I send all my buyers to lenders. Find a lender who is willing to work with you to repair your credit (I am not advising that you use one of those credit repair services) and maybe you can improve it over a period of time and then buy a house if you can't buy one now.
0 votes Thank Flag Link Fri Nov 9, 2007
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