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bad credit but big down payment

I have bad credit . around a 580 . If i found a house for say $60,000 and put a 50 % down payment . Do you think I would get approved ?   More lack of then bad . 
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January 11 2013 - Vienna Township
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Answers (9)

There are a number of lenders that are available that can do an FHA purchase with a 580 credit score.  Many lenders however have a minimum loan amount, so the large down payment is not an option.  Have you ever spoke to a mortgage loan officer for guidance?  Many of us have the opportunity to help resolve credit issues and find ways to improve your credit scores so that you can get better rates and pricing. It may be wise to use a portion of your down payment to pay off debt/bad credit to increase the score.  Were you ever in the military or National Guard?  You may be able for a VA loan if so, and there are some benefits available here as well.  There are options and lenders out there that can do this loan, and you need a starting point to see exactly how to proceed.
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July 23
what state will the purchase be in?
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July 23
Minimum credit score for an FHA loan is 580.  With some strong compensating factors, like a big down payment as you mentioned you may be able to qualify. Getting loan amounts below $60,000 can be very difficult so you'll want to speak to a mortgage expert in your area.
 
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July 23
FHA does not have a minimum required score, the requirements are set by the banks... If you would like to see if my company can get you approved please visit my site www.thelendersnetwork.com
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May 12 2013
 Talk to someone who knows what they are talking about, and can give you a game plan to get your scores up quickly if needed. I can help you out, if it is a few minor credit issues or refer you to a firm if it's pretty bad. I do have a Bank I work with that can do a 580 loan with as low as 3.5%-5% down, if you meet other requirements. [removed by moderator]

Randy Roberts
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January 18 2013
If it truly is a lack of credit keeping it that low, then the easiest thing to do is get some positive trade lines opened and sit back and watch your scores climb. You can get a one or two secured credit cards and use them a bit, but keep the utilization down to 10 to 15%. You can also go to a bank and do a CD, then borrow against it. I did this and our scores rose over 100 points in a few months. 

If you have any negative unpaid accounts, you might consider asking them to remove the information from your files in exchange for payment. It is often referred to as a PAID FOR DELETION. The best place to get specific answers and advice is www.myfico.com. 

You may well find that there are mortgage brokers that can get you approved right now, or very soon. You won't know until you apply
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January 17 2013
Why not take part of that big down payment and settle the accounts that are keeping your scores low.  I assume you have collection accounts?  Do you have any positive open credit?

You're not stuck with a low credit score, there are steps you can take for an improvement, which happens faster than you'd think.

Contact me through my profile on Zillow if you need more info.

I troubleshoot credit reports and negative credit for a living.
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January 17 2013

Hi Nick,
I have not seen FHA financing below 600 in sometime but i know it does exist. You could also look at a "hard money" type loan with that kind of down payment. The terms are not as attractive having higher fees and rates but if all else fails with the FHA loan you do have a back up option.
Best of luck!

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January 11 2013
Yes there are many FHA programs that go down to 580+.  We also have some programs that can go down to 500+ scores.
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January 11 2013
 
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