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Posted in Mortgage
I am wanting to buy a house, but I only have a credit score of 562, is this possible?
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Question By
loversfun2010

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Forgot to add, Wells Fargo has a program going down to a 500 credit score if you cannot get anyone else to help you.

Response by
briansraven

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Credit repair companies are notorious RIPOFFS.  I wouldn't use one for anything.  You're just wasting money you can be using to save for a down payment or to pay off bills.  You can find credit counseling companies who do not ask for money, who can help you.  Your local housing authority (HUD), or your local CAP (Community Action) agency can help you locate one.

I had a credit score of 590 and I had five credit cards with a combined balance owed of about $5K.  They were all pretty much maxed out.  I paid them all off because I am trying to get an equity loan and this is what my loan officer recommended.  My MIDDLE credit score, one month later, is 652!!  SIXTY points just by paying off my credit cards.

I have a bankruptcy that is three years old.

By the way, Credit Karma is NOT NOT NOT an accurate representation of your credit score.  I have my scores from the loan officer who sent me a copy of my credit report.  CK has my score at 612 and my middle score now is 652.  A much more accurate measure of your credit, within 10 points of less, is Identity Vault.  I looked them up and they are one of the top rated credit monitoring services.  I paid the $1 trial fee, got my scores because I was too anxious to wait to hear from the loan officer, then canceled the service within a week after I opened it and was not charged another penny because it was during the trial period.

Good luck to you!

Response by
briansraven

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580 credit score needed for home loan
Helpful to 4 out of 4 people

Actually it's possible, if your at a 562 your about 18 points from the minimum required score for FHA of 580. Possibly your score could go up by 18 points or more by paying down the balances on your open credit cards to reduce your credit utilization ratios. To find out where you stand visit

<a href=“http://thelendersnetwork.com”>The Lenders Network</a>

 to speak to a lender that offers home loans with bad credit scores. Good luck!

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Response by
BeverlyHillsagentASAP

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I believe a FHA loan will require a 580 score but that's with 10 to 20% down payment.  Normally a 620 middle score is required to be considered for a FHA loan ( 3.5% down plus closing cost's ).  Read all you can under credit scores on this site.  Do not apply for anymore credit now, get your credit card balances below 30% of the limits,  make payments on time.  These interest rates will be with us for at least another year so build your score.  Good Luck.

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Response by
nandog

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Helpful to 12 out of 12 people

I just recently bought a house and learned a lot. The companies look at your middle credit score from the three credit agencies. I had a 580 score and qualified for an FHA loan with Quicken Loans, an online company with high ratings. My downpayment was only 3.5% and they were able to assist me with most of it. I have a 30 year fixed at 4.5%, which I don't think is too shaby with my credit score. Also make sure that you clean up all accounts in collections; I think excluding medical bills. I hope this helps and good luck. Always remember to get PRE-APPROVED before looking at any houses and everyone's situation is different.

Reply by
poppinfun

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Helpful to 4 out of 4 people

Wow, My credit score was 685 and Quicken loans shot me down fast on a refinance. I wouldn't deal with them again i think they gave me the run around. And the Harp 2 program is a waste of time its crap.

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Reply by
greenbay1958

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Having filed for backruptcy myself, I know that you must wait a minimum of 2 years after your discharge date to qualify for an FHA loan.  You can get other loans but it's not worth it with the high  interest rates.  Time is the best cure for your bad credit score.  Also, if you haven't filed bankruptcy yet, make sure you do a lot of research.  In some cases it's worth it in other cases it's not.

Reply by
chfrench2

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what chance do you think i have if i file bankruptcy?

Reply by
godisgood365

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It's possible
Helpful to 7 out of 8 people

I work with people who have credit issues all the time that have gotten approved. Remember the scores you get on credit karma or any site online are different than a mortgage report. I refer my clients to The Lenders Network, they are kind of like the Lending Tree for people with credit issues, self employed or other issues most banks cannot approve they have a few lenders that go down to a 580 for FHA loans.

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Response by
BeverlyHillsagentASAP

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Helpful to 6 out of 7 people

In responce to buying a house: I used a company called lexingtonlaw (not spam) it's a credit consel company.  they send out challenge letters on your behalf.  you can monitor progress and put in priority through their website or via phone.  I signed on with them 6 months ago lowest score was 520, highest 580, and last month my mid score was 640 and I have a preapproval letter to purchase a house!!! I did pay off my lowest debts, those under $100 becuase over time 0 balance does count, but not in the short term.  I had three items removed that were not mine and got letters stating the companies had made errors, one being a celular phone charge off - I never had the service w thecompany during that time frame.  many other items were removed due to the companies not being able to/not wanting to prove the debt.  lots of helpful info on their website just like on this website. The service is $89.00 a month and I recommend it or another service of that type if you want to buy a house soon. They really do a lot for that money, in the beginning they sent out about 25 challenge letters the first month, and then addressed them as the results came back.  I'm pretty sure I wouldn't have been able to get such quick results on my own.  this is a given but make sure you take care of any current late debts, pay or set up payment plans and be consistant, becuase the last thing you want is a collection showing up on your report now.  i was pretty lucky in that  respect, most my collections were from 2007 or earlier but I did nhave on from Jan 2011 and was able to get it removed by begging and paying it off.  it was for $30 pur carelessness on my part.  lastly some companies will not budge in my experience if you ask them to remove the listing in agreement for payment.  I'd love to know the success rate of those who try vs. those who are successful.

Response by
tallmom

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Helpful to 1 out of 2 people

Which lender did you use for your mortgage?

Reply by
jnarcelles

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Helpful to 8 out of 10 people

 my husband and I lost our house about 3 years ago, our credit was so bad we had a ton of medical bills in collection, it was hard to even rent a decent place to live, because even land lords run credit checks. We knew we had to do something to get back on track. So I took out a loan in july paid off all bills in collection, then I hired a credit coach, and she wrote a letter for each thing on our credit report basically what she wrote was" bill paid not mine delete it" and within 2 months our credit went from under 500 now today it's 737. WOW I can't believe it. we are now buying a home. Signing the papers in a week. So don't ever think you'll never be able to rebuild your life just apply yourself to getting it done you just might be amazed at what you can do. Good luck to everyone if we can do it so can you.

Response by
kaskys

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who was your credit coach?

Reply by
spieldose620

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Helpful to 1 out of 1 people

if you have a collections for a credit card it shows the balance and counts agents your credit card utilization if you pay them it will drop the utilization and increase your score

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Response by
garystidham

408 Contributions
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How i got my loan

Hello Everybody I am Anna Melinda,living in USA.I am a widow at the moment with three kids and i was stuck in a financial situation by December 2013 and i needed to refinance and pay my bills.I tried seeking loans from various loan firms both private and corporate but never with success,and most banks declined my credit.But as God would have it,i was introduced to a man of God a private loan lender by name Mr Martin Davis who gave me a loan of $100,000 and today am a business owner and my kids are doing well at the moment.So dear,if you must contact any firm with reference to securing a loan with low interest rate of 3% and better repayment plans and schedule,please contact Mr Martin Davis.He does not know that am doing this but am so happy now and i decided to let people know more about him and also i want God to bless him and he also give out loans to both individuals and company.You can contact him through his email via:(martindavisloancompany@yahoo.com)

Response by
AnnaMelinda

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 How do you get repossessions off your credit report. Do you have to wait 7 years for them to fall off. I am trying to get a loan to open a business and my score is 541 and 544. I am in the process of paying off the little bills under $100.00, and sent settlement letters to others. Can I get a loan from anyone with this low score. BTW i don't have any credit cards.

Response by
flyinghighscore40

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Helpful to 2 out of 2 people

To build credit you must use credit.  Build your credit score by starting with a secured credit card ( Orchard Bank or Capital one ), just one.  Keep your card balance below 40% of the limit at all times and pay bills on time and keep doing what you are doing.  Read all you can under credit scores on this site.  Good Luck.

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Reply by
pacejoey

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