With a 567 credit score where can I find a 90k home loan?

I want to buy a home in Tennessee, the listing price is $97,000(although every few days it drops a few thousand). It is due to foreclose 9/13 and agent says they need an offer asap. I have close to $10,000 for down payment now and by december will have over 16,000 for DP. I currently live and go to school in New Mexico but am moving to Tennessee in Late December and Transferring my school to UTC. I would like to know what options are available to me as far as home loans and where to look/apply. I would also like to know of any additional fees with buying such a home. I also want to know what the foreclosure of the home means to me in terms of an interested buyer (different financing options, credit requirements, home still on/off the market and so forth). I am a first time home buyer with deferred student loans and one medical debt credit score 567.

Update:

I have 3+years with the same nationwide restaurant and could transfer to TN. I have a 1/2 and 1/4 acre in NM I could use as collateral.

7 Answers

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  • 9 years ago
    Best Answer

    You will not get a home loan with a credit score of 567.

    Even with your down payment.

    Work on your credit score (use some of that money you have to pay off your bad debt) and then re establish credit to get your score over 620 so you can attempt to get an FHA loan.

    This won't be the last foreclosure house under 100k you will find.

  • 9 years ago

    If you can even get a loan with that low of a credit score, you will be paying an astronomical interest rate. Take a look at www.CreditKarma.com which is recommended by CNN's Clark Howard. It is free and gives all kinds of tips on credit scores, interest rates, mortgages, etc. You can also get your credit score for free there. The mortgage and loan calculators are very helpful.

    If you haven't pulled your credit reports, you should to find out why your score is so low. Go to www.AnnualCreditReport.com for free copies from all three firms. Perhaps there are errors that are affecting your score.

    Source(s): TN resident
  • 9 years ago

    A $90,000 home loan is out of your price range. A credit score of 300-584 is poor and few lenders will consider your application because it's too risky. Anything below 600 is generally bad news. The majority of people in the US (about 60%) fall in the credit score range extending from 650 to 799, while the median score is around 723 according to past surveys. Your debt to credit ratio will be closely analyzed. It seems like you have more debt than income. You should work on saving money and improving your credit score before becoming a homeowner.

  • CatDad
    Lv 7
    9 years ago

    567 is a very low credit score and reflects that you've had trouble in the past with handling credit. Even if you could qualify, you'd be setting yourself up to fail. Take at least another year to save and rebuild your credit. The deferred student loans are also another obstacle.

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  • 9 years ago

    With that credit score you can't do nothing. Its 567 which means that your grade for your credit score is an F. So don't even try until your credit is fixed because they won't accept you and you will be damaging your credit even further

  • autumn
    Lv 4
    3 years ago

    Sorry but I don't know about this

  • Anonymous
    9 years ago

    No where dude! You got to have at least 30k to put down.

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