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lowest score to get a mortgage loan

I am having a poor score in the range of 500. I just wanted to know what is the lowest score to get a mortgage loan approval?

Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Rosie,

Getting approval with low credit score is possible. But as a friend I shall suggest you to improve your credit score as much as possible. This will open up more mortgage options for you with affordable interest.

If you are ready to accept high interest rates, then a score of 500 will get you approved for loan. That may be a sub-prime loan and may require a down payment of 5%-20% down payment. You are not going to get much options and the offer may not place you in a comfortable position.

Credit scores are not the sole factor to get a loan. Your income, assets, liabilities, job stability also count. A lender will also include this to judge and if the other things are found satisfactory, then you may qualify.

So, you can get a loan approval but to increase your chances, and try to improve your score to increase your options and to get the loan at a low rate convenient to you.

Hope this information will help.

God bless you.

For MortgageFit,
Samantha

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:55 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Rosie,

Do you need the loan desperately? As Samantha said, that low scores can get you a loan but at much higher interest.

Why don't you prefer to wait for sometime and try for an improvement in your score and then go on with your plans? I shall help you with some more information to help -

A range of 500 to 580 is considered as very poor financial record and may require high interest rate to get approved. You will get sub-prime loans.

A range of 580 to 620 will get you FHA loan with 3% down payment and the rate will be slightly better.

Credit score in the range of 620 to 680 will get you approved for a conventional loan with good rate

Above 680 is excellent and is considered as A credit. Lenders will be pleased to give you any loan

James Hogg

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:55 | Post subject:

blue's picture
blue | Joined: October 21, 2005 09:17 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Rosie,

I don't think you should look for the lowest credit score. Rather if it is not what you badly need now then try to improve your score and bring it above 580 to get more convenient options.

Regards,
Blue

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:55 | Post subject:

rita2's picture
rita2 | Joined: April 23, 2010 10:34 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

Don't be depressed to know that it is difficult to get a loan with a low credit score. There are lenders who provides loan with low credit score, however, there are some hidden charges also which people often overlooks while taking the loan. They also charge you high interest rate. It is always better to improve the credit score and make it minimum 600 - 620 in order to get good loan options. However, if it is really needed now then do a market survey, search for a good lender, then go for it.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:55 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i recently got a loan with a credit score of 500 with no down payment and a intrest rate of 3.1%

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:55 | Post subject:

franko's picture
franko | Joined: September 22, 2010 03:17 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

well your question was over 5 years ago. I hope you improved your credit by now. you should be at 600 or greater. look into a FHA loan

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:55 | Post subject:

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