Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Posted in Mortgage
Credit score 578 can I get an home loan anywhere
Profile Image

Question By
willdsmith30

0 Contributions
0 People Helped
All Responses
Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Just based on score, it is unlikely.  Becasue of the housing meltdown, much of which was caused by risky loans, additional regulations and guidelines have been put in place for the industry when it comes to granting mortgages.

The score I see referenced the most as a 'minimum' is 620, but other factors come into play that can reduce the perceived risk to the bank. 

The amount you can put as a downpayment on the home comes into play.  If you can put a substantial amount as a downpayment, it reduces the risk.  Keep in mind that the costs to the bank for a foreclosure, between legal, administrative, and drop in sale price is typically in the $20-40k range.  If you can put 25% ($40k) down on a $160k home, it is a consideration that can help.

Also, the area where the house is located comes into play, as well.  Are housing prices stable, or is there a chance that they may erode even more significantly?  This plays into risk, as well.  If you can put down 25%, what are the odds that erosion of the value in that area takes the home from having equity to being underwater?

There are other factors that can come into play, such as a long-standing positive relationship with the financial institution extending you the loan.

But, again, just based on your score, it is unlikely.

Top Contributor

Response by
phnxangell

255 Contributions
106 People Helped
Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Reply to this Question

Write your response:

Enter Your Comments
Submit to the Community