the possibility of getting finance with a credit score 595

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Chances of getting financed with the credit score of 595

miller_st · Joined: 17 Jan 2007 Posts: 917 168.82 Dollars($)

Hi Mary,

There are loan options even if your credit score is low such as fha loans. But for fha loans your overall credit history will be looked at and debt to income ratio should also be within specified limits.

Apart from credit score lenders would also look at your income, job status, reasons why your score has gone down so low & whether there are too many derogatory marks on your credit report.

Miller

Niicss · Joined: 03 Oct 2005 Posts: 1047 156.15 Dollars($)

One other option is MyCommunityMortgage from Fannie Mae. You can look into that also. These loans have flexibility on credit histories and also accept non traditional credit.

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Lenders need to know why your score is so low. Are there lates, defaults (how many - 30/60/90 days), previous foreclosure or bankruptcy or collection accounts listed in your report?

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Mary,

There are many lenders in the market who offer loans even with a low credit score. But you can expect a higher interest rate on such loans because of your low score. All you need is to shop around with some lenders and borrow the desired loan for you.

Samantha · Posted: Fri Aug 31, 2007 5:34 am Post subject: RE: financing at 595 score

Hi Mary,

Welcome to the forum.

Frankly speaking, currently it's not easy to qualify for a financing option in the US. The market's in a downturn after the subprime mortgage fiasco. And lenders and mortgage companies are getting strict over lending to every borrower.

I shouldn't discourage you but it's simply going to be tough for you. Still you can try out with some lenders in this community itself.

Hope this helps..

God bless you.

Samantha

wildstorm_films · Joined: 22 Aug 2007 Posts: 131 8.66 Dollars($)

Yeah its gonna be a little tough. You may still be able to get something but the monthly payments are going to be high.

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With poor credit it is difficult to qualify for loans and even someone agrees to lend, because of the involved risk in lending to a person with bad credit score, the rates are kept high to cover that risk.

wildstorm_films · Joined: 22 Aug 2007 Posts: 131 8.66 Dollars($)

You know what it would be cool if lenders look at the overall history of someones credit report. Take for example, me. for the last 6 years I've kept my credit score at a great level. I think a 640 hardly had any lates. I believe there was (2) 30 day lates last year. But in the span of 6 years I've kept my credit pretty much clean. Then this year everything has gone down hill and so has my credit so now I can't even qualify for anything. The apparently the mistakes that I made this year out weigh what I've done these last 6 years and I think its stupid that lenders can't see past the derogatories of this year and look at the overall history of the persons credit. I know lenders have rules to follow but still though. Its not like I or anyone else intended for our credit to be the way it is now. We live very different life styles and for some of us, its hard to make ends meet.

I'm self employed and have been self employed since the beginning of last year. I did pretty good last year with just running a little store on eBay. This year has been a different story with funds running out because most of the funds has to go towards bill paying. So getting a business loan has been equally challenging because for startups, which I am considered one because of being in business less then 2 years, the criteria's are high. 680 to 700 credit score and 2 years in business for a startup biz loan???

So yeah I think its rediculous that the overall history is not judged but rather how many 30 day lates are on the credit report in less then year versus how long the individual has maintain good standing for 6 years.

Ok I'm done ranting.

miller_st · Joined: 17 Jan 2007 Posts: 917 168.82 Dollars($)

Yes thats quite bad that lenders only look at credit profile of any prospective borrower for only last couple of years.

But looking at it from their viewpoint, it helps them to know how the person has been handling his finances lately.

Miller

Samantha · Posted: Sat Sep 01, 2007 4:34 am Post subject: RE:

Yes, I know Windstorm it is frustrating at times when you think that you did so well since the past few years except that only in the last year you couldn't maintain a better credit report. But again, these lenders and companies have rules to follow. I think this is mainly done to ensure that loan is being offered to those people who deserve it and later on they don't go into default – what's the lender or the company is concerned about is, they will get their money when they're supposed to get it. After all, they too are in a business, isn't it? However, it's true that a borrower is at times denied credit just because he has late payments when he's quite creditworthy if his past credit performance is analyzed.

May God bless you

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Wildstorm,

Even I think that the lenders should consider the overall credit history of the borrowers and not of the past few years. It will help many borrowers to qualify for home loans.

evolovik26 · Posted: Sat Sep 01, 2007 3:06 pm Post subject:

595 score assuming not alot of rates can get you as high as 90-100% financing if you have enough income and a good job history. Assets and downpayment will also help alot.

Samantha · Posted: Mon Sep 03, 2007 12:14 pm Post subject:

Evolovik, if 90% financing is what he'll get, then FHA can be a good option. Or else, there can be conforming loans also, I mean all such options which do not require one to have a high score.

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