can i get a 1ts time home buyers loan with a credit score of 540?

i am self employed make 37 k per year increasing by 5- 10 k every year. i have a school loan in rehabilitation and it is 4k and thats it. plus a few small collections on my report.

3 Answers

  • 1 decade ago
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    Speaking as a nationally know credit score and lending expert (book, rado shows, newspaper columns, etc.):

    Did you get your credit scores from an on-line service or a mortgage lender. The scores are very different, higher or lower!

    That is too low of a score for a 100% loan, period. Sub-prime lenders now require 580 or 600 or 620 for 100% financing, depending on lender.

    Fannie Mae's "Flex 100" program may approve you on their computer underwriting now especially if you have a retirement account or cash reserves or stock/bonds saved.

    Your self-employment is also a HUGE mortgage lending issue. Almost every lending company requires 2 years in business with various forms of proof of that being acceptable.

    FHA lending is a small possibility. I have not been involved in that for years. They were recently in the news as possibly offering 100% financing but had always been 97%. FHA does not underwrite loans on scores. One year perfect credit and one year paying your rent (WITH PROOF--not money orders or cash or a letter from the landlord) are what makes FHA fly. 12 months on-time rent would be cancelled checks or a letter from a professional property managment company--or it showing on 12 bank statements in a row.

    Mortgage lending is about 250X more complex than people think--it is NOT only about scores.

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  • 3 years ago

    that is not any longer no longer plausible. at the same time as there is not any more beneficial subprime lending, FHA has rapidly grow to be the hot subprime. It would not fairly count number what your credit status is. What does count number is your ability to pay off the deepest loan. you need to be in a position to exhibit sufficient earnings to help the deepest loan. added, an FHA personal loan looks on the most suitable difficulty of the sources you want to purchase, so once you're taking under consideration a fixer-top ignore it! more beneficial to the point, Why is your credit status so low? it might properly be an effective time to judge your spending vs. earnings in the previous you opt for to a loan. it is a huge step that some distance to many people bounce into without due interest. Please proceed with caution.

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  • 1 decade ago

    There are lots of programs out there; you could also likely get an 80/20 loan with a "seller 2nd" that might be forgiven at closing if you find the right house/seller. You need to get a good loan officer working for you right away. I recommend viewing the free evaluation form at

    They have a nationwide network of loan officers that they deal with who can likely get you into that home.

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