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Profile picture for Airborne family

Credit Score 530

We are looking to purchase a home in KY but do not meet the credit score requirements through traditional lenders. I was last informed that is possible to get a FHA loan with a score of 530.  However, finding a lender has been an issue.

We qualify for a VA loan as well but still have money to put down if need be.

Any help and/or suggestions are greatly appreciated!

  • December 17 2013 - Louisville
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Answers (4)

Profile picture for wetdawgs
@Neal: Lenders have the option to have an overlay.   Therefore, it is a very rare lender who will loan with low credit scores and the borrower will pay more for the privilege.    So, yes, you are right, it is possible.  Most people are not pleased with the costs.
  • December 17 2013
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"Borrowers with a minimum decision credit score of less than 500 are not eligible for FHA-insured mortgage financing", - this is what says on official FHA website. So it's possible for you to get a loan. 
  • December 17 2013
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Profile picture for wetdawgs
Have  you identified why the credit score is so low?   Have you developed an action plan for improving it?    There is nothing wrong with putting together a strategy to reach your goals and then working through it patiently.    

This isn't the answer you wanted, but be kind to yourself and don't make home buying an emergency when you aren't ready.  
  • December 17 2013
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Hello Airborne family, 


We meet again. 

You'll likely need to be at 580 or better prior to qualifying for a VA loan and at least a 600 for FHA financing. 

Based on your other question it looks like this could be a somewhat complicated scenario.  My suggestion is to reach out to a lender directly to talk through your options.  I am personally licensed in Kentucky and you can find my contact information on my Zillow profile. 

Hope this helps! 


Thanks, 
Aaron
  • December 17 2013
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