Profile picture for midi_man45

Looking for a mortgage with low credit scores

We have a lease that will be ending in about 5 months and need to find a home. However, our credit scores are 550 and 610. How hard will it be to get qualified in that amount of time?

  • January 02 2014 - Grosse Pointe
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Answers (4)

Have you determined whether you need to use both borrower's incomes.  If you can qualify based off of just the 610 borrower's income, then you could do the loan in just that person's name.  I could then assist you with a Michigan purchase using a FHA 203(b) loan.  It doesn't matter if the other borrower is your spouse or not.

That would be one option.  You could also do a FHA specialty product, which allows for a 560 middle score.  This program would require a 10% downpayment.  This might be an option for you depending on what is going on with the credit.  If you would like to speak about it, I would be happy to help in any way I can.  [Content removed by Zillow Moderator. Please see our Good Neighbor Policy
  • January 06 2014
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Profile picture for midi_man45
Thanks for the information and advice however, we are in a position where we do not have a lot of time to increase the scores to the levels many deem necessary to get into the best range. We are currently working with a mortgage professional to try and get a pre-approval. I will respond back with updates as we continue this quest. Thanks again.
  • January 04 2014
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It seems that your credit scores are circling around the lowest border of acceptable credit scores. The lowest scores lender like myself are able to do for home loans are around 580. So if you can get your scores (especially your median score) above 580, or better yet above 620. Then you should have a much better chance at obtaining a loan. The simplest way to fix your credit is to pay off your debt and revolving credit balance on time. Either way, the best thing for you to do is to speak with a lender directly to see if you can get started on financing with your situation. There are lenders like myself that would be glad to speak with you to help you get the loan that you need. There would only be a few more details needed to sort out your situation. 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!
  • January 03 2014
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Profile picture for wetdawgs
While you may be able to find a mortgage with poor credit scores (depending on a number of other factors such as down payment amount, income, debts etc),   you would have a much easier time of it and probably get better rates by working hard to improve your scores.   

Do you know why they are so poor?   Do you have an action plan in place to improve them?   Are you working the action plan?

  • January 02 2014
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