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are there any loans available for credit scores of 571 & 585

Building Business has been down---credit took a hit---paying $1800 a month
now for a rental----looking to buy
Help
  • October 29 2013 - Fort Worth
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Answers (10)

I understand, we do provide loans and have provided loans for people with scores as low as 500 as long as aonther borrower on the loan has above a 580 score. Since everyone uses the lower of the two scores when qualifying, most people will rule out that their score of 500, 510 etc will kill their chances of getting financing but if the co-borrower has at least a 580 score, we can do it.
Hope that clarified it a little more.

Scott
  • February 20 2014
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I appreciate the answer, but to be blunt 580 is not 500. Do you have loan programs that go down to 500? Any lender can target raising a buyer's score so they qualify eventually, but that is not the same as providing a loan product for them.
  • February 20 2014
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It's a portfolio product, If there two borrowers on the mortgage income, assests etc. Typically 580 is what we shoot for and I first look into what we can do to boost the scores. Trust me we look at all angles first before jumping into something as low as 500 .
  • February 20 2014
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"My company will do down to 500 with other compensating factors. "

500 is darn low. What are the other "compensating factors"?
  • February 20 2014
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Good luck and best wishes!
-Scott
  • February 20 2014
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It depends on other factors besides your credit score. A good rule of thumb. Good credit can help you buy but you can't buy good credit.
  • February 20 2014
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Sorry, I made an error and Zillow wouldn't let me edit. The minimum is actually 500
I found the source on HUD's actual mortagee letter 10-29

The trick will be finding a lender that's up for it for the reasons I mentioned below... I stand by everything else I wrote.
  • February 18 2014
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The good news: FHA's minimum credit score requirement is 580 (source: http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2010/HUDNo.10-016)

With that said, most lenders usually require something higher than that (called an "overlay" requirement) because if you quit making payments, in some circumstances the lender will be penalized. I'm sure Brian (below) can hook you up. Its not difficult for an experienced lender to figure out how to get your score up a couple points. 
Keep in mind, the lower the credit, the more money you'll need.

This probably isn't what you want to hear, but if I had a better idea of your situation, I bet I'd be talking to you about why buying isn't always a good decision. Seriously, its not all its cracked up to be. Google to find a mortgage calculator (or go to bankrate.com), then click to see the amortization table. Keep in mind, you'll need to add taxes and insurance to whatever payment they quote you.
The point is, your monthly payment won't pay off the house much. It takes years to make a good size dent.
Now play with the calculator some by adjusting the interest rate up and down. Look at the total amount of interest you'd pay over the life of the loan... The better your credit the better your rate will be... i know I know, the market will change... so what. The market will always change. Focus on what you can control - your financial profile.
When you consider all factors, it probably isn't a bad idea to just live below your means for a while, pay off some debt, stay current on your payments, put some cash to the side to save for a down payment and repairs. After the market turns again and you start hearing about a bunch of foreclosures in the news again, you'll probably be ready to buy. By that time your credit will be improved so you'll qualify for a good rate, and you can afford buying a foreclosure. In the meantime, find a cheaper apartment and enjoy all the amenities that come with a nice apartment.
This whole process wouldn't be real exciting, but if you actually did it, you're future would look really bright.
  • February 18 2014
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Your credit scores are right on the border. The lowest credit scores lenders like myself are able to do, is a score of 580. I recommend that you work on your credit score a bit to confidently get yourself up above 580.. The simplest way to improve your score would be to pay off your debt and revolving credit balance on time. It's also important to understand that you're ability to obtain a loan relies on other factors as well. These factors include income, expenses, assets, liabilities, debt, employment, down payment, as well as credit scores. Either way, I suggest you speak with a lender like myself who would be glad to speak with you to help you get the loan that you need. If you have any further questions or if you would like a loan, feel free to contact me.

Good Luck!

  • October 31 2013
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Yes there are programs available, the FHA offers as low as a 530 credit score to qualify for a purchase.  If you would like some more information you could contact me through my profile and I'd be happy to answers some more questions 
  • October 29 2013
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