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Credit score 580 FHA loan.

My credit score is 580. I would like to purchase a home through FHA. My credit card balances are a little high. I have 3 medical collection accounts totaling 500.00. Would my husband need to be on the loan? His credit is not the best.
  • September 27 2013 - Kirtland
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Answers (12)

Your husband does not need to be on the loan if his credit is not sufficient to qualify. If you're in a community property state, then his debts will be factored into your DTI. A 580 score will just $500 in collection accounts gives you a great shot at getting approved for an FHA loan. You'll want to speak to a loan officer to go over your situation in more detail. I can recommend a couple lenders that work with 580+ scores if you'd like some help.
  • August 19
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  • August 11
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You can qualify based on your credit score, the other determining factor is your DTI, debt to income ration, with my lender this can not be higher than 52%. Medical collections won't be used against you.
  • August 05
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  • June 04
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Profile picture for TiffanyKristineClark
In Louisiana- I am a 42 year old single mom and a first time homebuyer. I have been a my job for 18 months and I have an annual income of $73800 with child support currently at $945 a month. My current and open and on time credit card debt is $8850. I have a large student loan debt that is in deferment at the moment and I have medical collections and some other miscellaneous collections. I have a 563 credit score right now. I am in a lease purchase that has to be settled by December 31, 2014 and result in a purchase or I will lose the $8600 down payment they are holding for me. The purchase price is $189k and the house will easily appraise for over $220k. The $8600 they have held for me is my down payment of approximately 4.5%. Can I qualify for a mortgage at this time with the information I have provided? I am great need to get this done by 12/31/14 and I don't have the extra cash flow or the time to pay collections and such off to raise my score significantly. Help!
  • April 30
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Just because you have a credit score of 580 does not mean you are disqualified for a loan.  At First Guaranty Mortgage Corporation (FGMC) (A nationwide lender licensed in 42 states and DC), we offer an FHA loan program that can lend down to as low as a 530 credit score.  Usually it depends on what is impacting your credit report that will determine whether or not you will be eligible.

It is not always score driven as it is more so driven by what has happened to your credit.  Are the medical collections new within the past 12 months, do you or your husband have any recent late payments on any type of credit account (recent meaning in the past 12 months)?  Do you have sufficient debt to income ratios?  How much do you have saved up for a down payment, etc. 

Just because we can lend to a lower score does not mean you will automatically be approved for a loan, it has to make sense and we have to evidence that you have the ability to repay the loan based on the information provided.  I would be more than glad to try and assist you to the best of my ability, and if this is something we cannot assist with in the immediate future i would be more than glad to at least give you and your husband a road map and a potential time frame that we may be able to assist you to get into a new home.  If you would like to give me a call or send me an email I would love to speak with you. 

Please note that this is not a commitment to lend and all loans are subject to approval.  Loan program terms and conditions are subject to change without notice.  Additional conditions apply.  FGMC is not directly affiliated with a government agency.  We are an equal housing opportunity lender.
  • January 09
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  • January 09
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Are any of you able to assist someone in Colorado with a credit score of 551?
  • December 24 2013
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FHA will allow score below 580 so based on your score you qualify. As for your income qualifications and whether to include your husband its difficult to know without reviewing your financials. I suggest contacting a broker/lender you feel comfortable with and discuss in further detail. Good luck!
  • December 03 2013
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I can offer FHA financing with as low as a 530 FICO score. I would have to take a closer look to see if your husband will need to be on the loan. Feel free to contact me through my profile if you wish to discuss further.
  • September 28 2013
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We as some other lenders can go down to 560 on a manually underwritten file providing your DTI is in line. The only way to determine if you spouse will need to added would be to discuss your scenario with a Loan Officer. Then you'll know where you stand.
  • September 28 2013
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Your credit is acceptable because there are lenders like myself that can give out loans with scores as low as yours. The problem would be the balances and collections. This might cause a little bit of a problem but more information would be needed to figure out whether or not it is deal breaking. Also, you do not need you husband on the loan if you have strong finances yourself. Just keep in mind if you keep him off the mortgage, only your income, credit scores, and finances will be looked at. Either way, I recommend that you speak with a lender like myself that would be more than willing to speak with you to help you get the loan that you need!

Well I hope this helps! If you have any further questions or if you would like a loan, feel free to contact me!

Good Luck!
  • September 27 2013
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