Getting a mortgage with poor credite score

amyesler · Joined: 17 Jan 2008 Posts: 1 1.32 Dollars($)

Is it possible to get a mortgage with a crdit score in the very low 500's?

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

Hi Amyesler,

Welcome to the forum.

I think you can opt for FHA. This is not a score driven program. So you can try your luck.

Mortgage approval does not only depend on credit score. So I will like to know about LTV ratio. Have you ever late on your mortgage payments?

By the way why is your score so low now?

Best of luck,
Larry

gmakerley · Posted: Thu Jan 17, 2008 2:15 pm Post subject:

truly, there is too little information to give you an answer. low 500's could be 500 even or 540...that will make a difference. if you are closer to 500 than 540, then your chances at the moment are not good.

as larry pointed out, your job situation, earnings, cash reserves left over, etc. all come into play.

in order for you to qualify for a mortgage with a low score such as you noted, you would have to have a nifty little explanation letter to describe the situation and how a lender might be able to rely on you to make payments in the future.

banker0679 · Posted: Thu Jan 17, 2008 10:35 pm Post subject:

FHA may not be 'credit score' driven but they are 'credit worthiness' driven.
If you have had recent credit lates in the last 12months then you will need to wait or have them fixed. Some FHA lenders may overlook this but depends on the situation.

Also, FHA doesnt look at a credit score but the mortgage lenders do.
Most FHA lenders dont lend to a borrower less than 580...some 550...and you will find a few that lend less than 540. Find a good broker who knows which lenders lend to lower score borrowers

michelle · Posted: Fri Jan 18, 2008 5:08 am Post subject:

Welcome to the forum Amyesler,

As Banker and George noted, there are many other variables that would affect your ability to get a mortgage at this time. Seeking the guidance of a mortgage professional who can review you entire situation may be a good idea so you can get an answer based on the whole situation. You can find a lender by clicking on the lender tab above your by submitting a request for a mortgage quote.

You can also post more details here and we would be happy to give our opinions. Best of luck to you.

lisascherzer · Joined: 04 Jan 2008 Posts: 749 0.10 Dollars($)

It might be possible depending on how much of a down payment that you have. Without knowing all of the details, I would say that you would need at least 20% down. This is just best case scenario. I don't know if you will qualify since I do not have all of the details.

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