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Credit Score of 541 Using CreditKama

So I used CreditKarma to check my credit score so I'm not completely sure how accurate it is. But basically, I was wondering if anyone knows of any FHA lenders that would give me a loan with that low of a credit score and like 3% down? I have a co-signer, my fiance, but her credit score is around 515. I currently have an auto loan if that matters.
I've had my current job for almost 3 years, and the job I had before that I held for 6 years. My fiance has had her job for 3 months and before that she held her job for 2 years.
  • November 04 2013 - Urbana
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Answers (5)

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Use the money you have for downpayment to work on your credit first.  You will be able to get better terms with atleast a 640 credit score.  They would be using the lower of the two credit scores so 515 would be the score they go off of.  Have a lender pull your credit and see what you would need to do to qualify. 
  • November 04 2013
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Hi, 

You're right so far as accuracy. You're only getting one bureau (there are three and I believe Credit Karma gives Trans Union only). Also, Credit Karma isn't providing a score for any specific purpose it's what I would call a "consumer report". It's not a specific inquiry to apply for credit nor for a specific purpose, ie auto, credit card or mortgage. Not to say the score would be significantly different however it's possible. 

So, we can start with your fiance, we wouldn't be able to consider her eligible for financing. She'd need at minimum a 530 credit score. 

For you and your scores, you'd need at minimum 10% down plus up to 6 months of reserves (cash in the bank after closing). Plus, you wouldn't be allowed to have any late payments, no new collections, charge offs or judgments in the last 12 months. From there, there's new guidelines for FHA concerning outstanding collections too that you'd also need to meet. 

There is no cut and dry answer for you without further discussion but, if all of the above seems to fit for you then, it may be possible to obtain financing. Otherwise, I'd recommend using one of many services offered like www.iqualifier.com. They'll help you identify what you should work on first. What has the most weight on/towards your score etc..  

If I can answer any add'l questions I'd be happy to help. Otherwise, best of luck to you both! Kimberly Lawson, Ohio Licensed Mortgage Loan Originator. Contact and licensing information can be found on my profile.
  • November 04 2013
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Those credit scores can be hard for most lender to deal with. The lowest lenders like myself can go is to a credit score of 580. Since you are below that I recommend that you work on your credit score for a bit. The simplest way to fix your credit is to pay off your debt and revolving credit balance on time. Either way, I recommend that you speak with a lender like myself that would be happy to speak with you. Us lenders would be happy to point you in the right direction to get you started on the road to your loan. Well I hope this helps, if you have any other questions or need a loan please contact me through the information on my profile page. I hope this helps and good luck!
  • November 04 2013
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Most lenders won't go under a 580 score.  I would contact a credit counseling agency to help you raise your scores.  If you contact a credit repair specialist, they can review your  credit report with you and make suggestions to help you raise the scores.  Be careful before using one, as some do charge money. 
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Good luck!
  • November 04 2013
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