How bad can one's credit be and still get a mortgage?

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  • Anonymous
    1 decade ago
    Favorite Answer

    All of the above is correct about the 620 score - for an A paper loan. I've had far lower scores than that and still gotten a mortage with a decent rate (about a percent higher than A paper - still cheap money in today's market), the icky part is the pre-pay penalty. Most of the lenders that will do this kind of loan will charge you a hard pre-payment penalty that means that even if you are selling, not just trying to refinance, you're going to pay to get out. I've got a 5.90% fixed jumbo on an (80/10/10 loan) that I took out this April with a 695 score, but I had 6.5% three years ago with a 580. My score vacillates wildly with my balances on my accounts - and I always pay them down to 25% of my limit 45 days before I apply for a mortgage loan. My score usually has gone up about 100 points from this simple thing. The other thing is that if you have 20% down it will cover up for a lot. Credit score and income are still the biggest factors in today's market. You can get a mortage with virtually any score if you're willing to pay for it is the bottom line. Get a great mortage broker that you can talk to and they will go to work for you. Also, if you have any new collection accounts or delinquencies pay them now. If they are old, talk to your broker first as you may end up re-aging an old account and getting a negative impact if you pay on it. I hate to sound like that, but a lot of these collection agencies get bunk accounts and then use them to collect unowed money. I'm sure many are reputable, but it's the crappy ones that can hurt you when they don't play fair. Anyhow, go for your mortage and good luck!

  • 1 decade ago

    There's no one answer to that question. You need to tell us what kind of mortgage you are seeking. The most simple answer is a 625 or higher FICO score. The more complex answer: there are lenders out there today that will lend on much lower FICO scores.

    Of course the better the credit score, the lower the interest rate. And some lenders will make exceptions based on specific stories, i.e. I don't know why my FICO score is so low.

  • Anonymous
    1 decade ago

    Pretty bad; for the right hard money loan you dont even need credit though you will always pay a higher interest rate the lower your credit score. If it is a higher dollar property and you have 3 months lead time, you might consider credit repair to raise your score; it could save you thousands of dollars.

    Source(s): www.totaldebtsolutionsllc.com
  • jen
    Lv 4
    1 decade ago

    It depends ont he company you get your mortgage through. And it also depend son whether or not you have corrected the problems that are listed on your credit report. And it also depends on what your income and job status is. Most companies do not base loans solely on your credit rating. It is important, but it isn't the only factor!

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  • Anonymous
    1 decade ago

    For A paper, typically 620.

    For subprime loans, most SP lenders will go down to 500.

    There are a few who will go below 500. With scores in the 500 range be prepared to make a significant down payment.

    If you need to go with 0% down, the score is 580.

    Source(s): Realtor and former loan officer.
  • 1 decade ago

    depends on a lot more than just the FICO score. how much you have for a down payment and if you are going conventional or government...makes a huge difference in the type of loan that you would qualify for.

    I mainly do A paper loans here in Vegas but I've done a couple of subprime loans and got people qualified at FICO scores close to 525

    Source(s): mortgage broker for 12 years
  • 1 decade ago

    in the state of washington the average low mid score should be 630 points to be able to get a loan. But you still have to shop around quite a bit with lenders to get the best deal. There are also special deals for the first time home buyer that allows you special deals with points, closing cost etc. check with your local realtor for advice. You don't nec have to hire them, just ask for advice.

  • 1 decade ago

    you can not have bad credit and get a mortgage.

  • 1 decade ago

    All of the above, plus, depends on how much of a down payment do you have?

    20% down will get you everywhere.

  • Anonymous
    1 decade ago

    620 is probably the minimum score.

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