is it possible to get a mortgage with a FICO score of 545? we havent had luck so far.?

Question

We tried with one well known company and he said that the requirements have changed and the minimum score has gone up to 620 because of all the people with bad credit getting approved in the past now claiming bankruptcy has caused mortgage companies to go bankrupt and raise their standards.

Answer 1

There are still plenty of subprime lenders out there but you'll have to spend time looking for them and shopping rates. Expect to pay higher interest rates and have your credit history highly scrutinized.

Subprime mortgages tend to be adjustables, which might not appeal to you, but it might be the only thing available.

Lenders will want to see that you've "turned the corner" and that the reasons for your low score are far in the past. If you had a few late payments a couple of years ago, that may be acceptable. But if those late payments were in the last couple of months, you'll probably get turned down because they'll think your bad habits will continue.

You should also have a reasonable debt-to-income ratio. With a mortgage, your monthly debt should not be more than 36% of your gross income. If you already have a lot of existing debt, you'll have problems getting approved for more debt.

Answer 2

The information they have told you is the truth "BUT" there are other variables.

The lower the price the easier it is to get in.
Also you can always get a co-signer and have them go on it with you.

They don't have to pay the payments and as long as you do, they have nothing to worry about.

There was a time in the market where I would say it would be very very VERY difficult for you to get a place. Right now I wouldn't say that as this is the best market for Buyers compared to anything I have seen in the past 20 years.

I believe the market (I'm an agent by the way) has bottomed out right now and we all know the phrase "What goes up must come down" and that also works in reverse.

So there are things you can do and here they are in order of what helps you the most #1 being the best #2 second best etc..

1. Money
The more money you have the less risk banks have to take so if money is in issue look for something cheaper or..

2. If you can't come up with any money but you have time, go to a credit repair specialist. They have some honest ones that are really really good. I had a guy come into my office one day to rent a place, and he had a 580 fico and said he didn't want to buy right then but would in a year.

In less than 12 months his fico got to 680 and he used a credit repair/adjust service.

See, ficos can be adjusted higher very rapidly. Sometimes you have things on your credit that have been there 10 years and they should legally be taken off but if you don't have someone do it (They have to take some off if its been too long) it still remains there and looks bad and lowers fico.

So a credit repair specialist can do wonders. Also if you have any credit cards you can pay some down, not off , but down to a point where your fico improves.

The easiest fastest thing is always the most difficult. Ever notice that? And the easiest fastest thing is getting a co-signer.

One more quick story, I have a couple now buying a house but their ficos are like yours but they have good income but what we did is get their kids (they are older kids) co-sign on with them.

The kids don't have to make the payment but they get the house.

Many folks I have found, do not think the right way. In other words they think "How can I get a place this way or that way" and you can't think that way.

The folks who think like this..."Ok, what ways can I get a place and what do I have to do to fix it etc.. so I can get a place"

That thinking is better.

So I would look at the options and if one option you don't like then scratch it off the list go to the next option. If you find that you don't like any of the options sometimes one must pick the one they dislike the least.

It is worth it though to buy right now as I can't see the houses going lower any more.

But another thing that will help you is get the free reports at the site below and do some research on the site. The site is 100% free

Answer 3

Maybe a house is not the best idea for you. With taxes, repairs, insurance, higher utility bills, etc, you might have trouble paying. Now I know you will say no problem, but with a 545 FICO, you must have had some problems paying bills.
Do you have two months of income saved for reserve? Do you have a 10% down payment saved? If the answers are no, then you might not be ready yet.
You should meet with a credit counseling service first, get a budget set up, pay off or settle on those bad debts, and start a savings plan.

Answer 4

I got a 6.5% mortgage with no money down, and a poor credit score, Fico score. FHA loan with *** ***** mortgage company. A mortgage is not like a credit card. It is a secured loan. As long as you can find a home that appraises for more than the asking price, and you have good rental history you can qualify for a mortgage. If I can, anyone can.

Answer 5

You need to align yourself with a good loan officer who is a partner with MGIC. They have a program called credit guard coach that will analyze your credit and tell you specifically what to do with each account so that you can raise your score. There are lenders out there that will lend to you with a 545 score it will be very expensive though. Your payments will be a lot lower if you can just raise your score by a little bit.

Answer 6

when you are under 600 that is considered subprime. And most mortgage companies will not accept subprime anymore. The regulations have gotten changed at least 3 times in the last 2 months because of forclosures. work on your credit and get it up.

Answer 7

Have you tried a rural development loan? They are for people with poor credit because they are backed by the federal government. One problem is that you have to buy a house in a city with population of 20,000 or less