My credit score is pretty low, what would be the lowest and still being able to get a mortgage?

Question

My credit score is around the 500 mark. My fiance and I are watning to by a house within the next year. His credit is worse than mine, but we really are in need of a larger home.Do you know of anywhere that migh be able to help?

Answer 1

Depending on which sate the property is located I can hook you up with some loan officer friends of mine that deal with low credit.

Answer 2

there are very few places that will help with scores like yours unfortunately. the "minimum" score that's needed is generally around the 530-540 mark so you're not that far off. since you're hovering around 500 and your fiancee is below that, will make it rather hard to find lenders willing to loan you the amount. and with a credit score that low, you WILL need to put a down payment down. nearly 99% of banks, in your situation, will require at least a 20% deposit in order to loan you any money. some will take 10% but you will get reamed on the points and rates. also depends on the cost of the house too. don;t even bother with anything over 150k. your score will limit you severly in what max amount you can get for a loan. were your score to be around 600-620 then that's usually the cutoff point for 100% loans. you and your fiancee will need some serious credit management, done by you, and then you can get what you need. either way, you will be looking at attrocious rates. but that can always be remedied later on.

Answer 3

You may be able to get a mortgage IF your debt ratio's are within the lenders guidelines. You will be forced to pay a much higher interest rate than others who have higher FICO (credit scores). Lenders prey upon customers like you though so please proceed with caution and make sure you obtain a Good Faith Estimate from all lenders you look into. Ask lots of questions. Have all estimates looked over by someone you trust. Concentrate on doing those things that will improve your credit scores and overall financial situation so in the future you can refinance your home and obtain a lower rate.

Answer 4

You can get a loan even with a low FICA. Your interest rates and down payment will be VERY high.
If possible, wait and build up your score.

Whatever you do, DO NOT use a "credit repair" agency or anything like that. They will get things off of your credit report illegally by stating that they aren't your accounts and once the original creditors realize this, they will get the info put back on your credit report, the "credit repair" agencies will have your money and you will be worse off than before.

Anyway, good luck, try to get the score up and if you can't use a reputable lender to work with.

Answer 5

You have plenty of options!!!!!!!!!!

I have lenders that will finance down to as low as 490 credit scores....

I would be happy to take a look at your situation and give you an analisys as to what you qualify for...

Do you currently own or rent?

If rent, do you have a 24 month rental history? Did you make all payments on time in theat 24 months?

The best thing for you to do is have aprofessional look at your credit, and give you a detailed abnalisys as to rate, payment and how much of a house you can afford..

From there, you will know exactly what type of house to look for...

Feel free to call or email me at any time..

I work with Providential Bancorp, we ar a natinwide mortgag lender, and i have been originating loans for over 13 years...

Good Luck and best wishes!

Jason Fry
Licensed Mortgage Originator
Providential Bancorp
[e-mail]
312-264-6448

Answer 6

Any one can get a mortgage...even with low credit score... It simply means you will be paying a much higher interest rate and insurance fees than someone with a high score.

Build that score up... pay for things on time and ahead of time !

Answer 7

I would say it depends on the creditors guide lines.

Answer 8

I don't think you'll be successful.

This isn't what you want to hear, but it's honest.