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I there any way to get approved for a home loan if I have bad bad credit low 500's?

I have a good job and I make decent money (over 50,000). I went through financial hardship about 4-5 years ago and I lost my home, car and credit cards.
  • March 15 2014 - US
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Answers (6)

Profile picture for ranger100
Thank you for your kind response!!!

A motto: "Who believes longest, and strongest will always win"...Never quit!

Forward and onward!

Ranger
  • April 11 2014
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It will be difficult to obtain a loan with scores in the low 500's. The lowest most lenders are able to do are scores of 580. Once you bump up your scores to 580 or above, you will be in a much better position. The lowest that most lenders can go is around 580. The simplest way to fix your score would be to pay off your debt and revolving credit balance on time. If your scores are already at 580, then you should be good to go when it comes to credit. Either way, the best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!
  • March 18 2014
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There are several ways to buy a home without the bank. They each have their own advantages. lease option, owner carry, wrap around mortgage, take over an existing loan. They all involve the use of a mortgage loan originator under the Dodd Frank Act implemented in Jan 10 2014. [self promotion deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]

Terry Lewis
  • March 16 2014
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Since your hardship transpired 4-5 years ago and you can show solid disposable income to cover the mortgage payment, the next step is to establish credit. The key here is to show you've had a positive payment history in the past 24 months and no major derogatory credit, such as a lien, Bk, or foreclosure in the past 36 months.  To build credit and boost your credit scores, the long path is to get a secured credit card and pay on it 'on-time' for a minimum of six months.  For the short path, consult with a credit restoration or credit build-up specialist.

Good Luck! 

 
  • March 16 2014
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Profile picture for Dan Tabit
You probably can't based on your description.  But, if you meet with a local lender and go over your situation they can advise you the steps you can take to qualify sooner. 
Many people have gone through hard times and come out okay.  It doesn't happen by accident and requires some very specific steps or you remain in the hole you found yourself in. 
Congratulations on your job.  Save up whatever money you can.  Pay off whatever current debt you have.  Re-establish credit with a couple of new lines of credit, you may find a secured card with your bank the easiest start.  Any derogatory credit after your past is especially bad, so pay everyone on time or early.  Do not pay off any old collections until instructed by your lender and do not close any accounts, these will both lower your score.
Rather than try to force something with all you've been through, take the steps to fix your situation and you'll have a much easier time getting an approval.  Credit scores in the low to mid 600's are generally acceptable for FHA with only 3.5% down. 
By meeting with a lender soon you can find out what you need to do specifically.  Best of luck.
  • March 16 2014
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Profile picture for ranger100
Hello,

  Owner financing, Bank foreclosure, possibly FHA, Cosigner, personal loan. relatives...  Just don't buy larger than you need, can afford and maintain. Operation costs are very important: Heat, Electric, Maintenance, Taxes, insurance and commuting distance to your job...

  Best wishes in your search!

  Many have been through the financial "bad times". Your not the first.

  Ranger
  • March 15 2014
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