Can I get a loan with 540-80 score?

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Icon Mini Profile Phatima01





Joined: 26 Mar 2009

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Post Posted: Thu Mar 26, 2009 1:24 pm    Post subject: Can I get a loan with 540-80 score?
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Hello

My name is Phatima my credit score is 540 and I am looking at buying a 4 unit apartment complex for an investment and for my primary home. The asking price is $89k is this out of reach based on my credit score? I have been working with a Realtor who has advised me based on my credit report that after disputing some inaccuracies on the report my score would rise to 580.

Unfortunately he said I needed at least a 620 to get in the game. I make about $3000 a month and have been on my job over three years. I was told I would have to put at least 3% down on the property if my score was 620. I have money saved for a down payment but finding lending is the issue. Can you please share information with me as far as what I would need to do in order to get a loan in the near future if at all possible.

Thank You

Phatima Newton
Icon Mini Profile gmakerley
gmakerley
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Post Posted: Thu Mar 26, 2009 1:46 pm    Post subject:
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phatima you'd need reserves if and when you make such a purchase, also. fha loans require the following: 3.5% down payment, 3 months' reserves (the monthly payment X 3), 620 credit score, plus (of course) sufficient other assets to allow you to pay for the closing costs.

your income and the price of the house seem to be a good fit, depending on what, if any, other debts you have on a recurring basis.

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Icon Mini Profile jameshogg
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Post Posted: Thu Mar 26, 2009 7:44 pm    Post subject:
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Hi Phatima,

I agree with George. A minimum credit score of 620 is required to get a FHA loan. In order to get a mortgage in the near future, you will have to improve your credit score. To know more about improving your credit score, check out the following link:
http://www.mortgagefit.com/credit-rating/credit-repair.html

Thanks
cindyabc

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Post Posted: Sat Apr 18, 2009 10:05 pm    Post subject:
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Phatima, my husband and I just secured a FHA loan with a score of 600. Our interest rate would be a bit better had our score been higher but it can be done. According to what we were told the score had to be at least 580. Minimum down is 3.5%. Good Luck!
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