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The 580 or less club

Frequent Contributor

The 580 or less club

Can anyone post their experiences, bad or good, getting pre-approved for an FHA loan with credit scores 580 and lower. I know everyones situation is different but I'd like to hear anything anyone cares to share as I am waiting pre-approval for an FHA loan with Bank of America.
 
Currently my scores are 561,571,581. No lates for 12 months, except an error on my report from capitol one that I was late 9/2007. My income is 35,100. I have about 2k saved. I pay out $336 a month in debt so I guess my DTI is okay. All of my past collection accounts are at least 12 months old and all are paid off. After reading some of the posts I'm not so sure I will be approved. But I should find out tomorrow. Wish me luck! But anyone have any stories please feel free. I need all the encouragement I can get.
-------------------------------------------------------------------------------------------------Fico Score Range 600-625 across the board
Message 1 of 65
64 REPLIES
Frequent Contributor

Re: The 580 or less club

I sent you back an email
Updates scores...inching along. Waiting for 7 recent medical collections to fall off!! (seriously working since END of May): EX 519 TU 576 EQ 449
8-02-08 EX 644 TU 647 EQ 575...650s here I come....700club, get ready!!!
Message 2 of 65
Valued Contributor

Re: The 580 or less club

Hey Schalane85 and MichiganMommy.....Don't lose hope! Ignore the posts from those on their self-imposed high horses!

Credit Scores are just #'s. Determination to fix what went wrong outweighs any adverse affects on our credit reports!!!

Anything can be done when we set our minds to it!
Mortgage Lenders Mid-Score 778 I AM A HOMEOWNER!!!!! 30 Year 5% Fixed Rate, closed on 3/18/09
Message 3 of 65
Frequent Contributor

Re: The 580 or less club

Thank you! Your encouragement made my day. Smiley Happy
Updates scores...inching along. Waiting for 7 recent medical collections to fall off!! (seriously working since END of May): EX 519 TU 576 EQ 449
8-02-08 EX 644 TU 647 EQ 575...650s here I come....700club, get ready!!!
Message 4 of 65
Established Member

Re: The 580 or less club

I am in this club as well. I would love any advice or suggestions anyone has. I have owned two homes in the past. The first was a conventional loan with a co-signer, the second was FHA. When we bought the second we had low scores as well, below 550, and still got a great rate....but that was 2002 and things have changed a bit. Unfortunatly my husband was injured at work and we lost the home in 2004 when he was unable to work any longer.
 
I have been reading all the advice on here, some very helpful and some just down right mean....but what I wish people would understand is that some of us have low scores because of things that have happened in our lives and not because we are irresposible people who cannot handle money. Personally almost 100% of my credit report are medical collections that were not paid by workers comp or insurance that should have been. Also just because some of us cannot manage to save 1000's of dollars for a down payment does not mean we should never be able to won a home. My family is a perfect example of one that will never be able to save while renting. We pay the lowest rental payment I have been able to find which is 700 a month. That is cheap pretty much where ever you live. The homes I am looking at purchasing would be half that payment. I have no desire to purchase something out of my means. I am already paying more in rent than I can afford, for me ownership would be more beneficial. So just because I have lower credit scores and need down payment assistance I should not buy? That is the attittude some seem to have. I may not get a home today but I will eventually....
Message 5 of 65
Frequent Contributor

Re: The 580 or less club



shalane85 wrote:
Can anyone post their experiences, bad or good, getting pre-approved for an FHA loan with credit scores 580 and lower. I know everyones situation is different but I'd like to hear anything anyone cares to share as I am waiting pre-approval for an FHA loan with Bank of America.
 
Currently my scores are 561,571,581. No lates for 12 months, except an error on my report from capitol one that I was late 9/2007. My income is 35,100. I have about 2k saved. I pay out $336 a month in debt so I guess my DTI is okay. All of my past collection accounts are at least 12 months old and all are paid off. After reading some of the posts I'm not so sure I will be approved. But I should find out tomorrow. Wish me luck! But anyone have any stories please feel free. I need all the encouragement I can get.


Check out www.hud.gov.  Your salary in your state/county may qualify you for downpayment assistance programs through the federal gov.  Having money to put down can help offset trouble that your credit reports/scores can/will cause
Message 6 of 65
Established Member

Re: The 580 or less club

To all in the 580 or less club,
     I don't want to mix religion into this forum and offend someone, however, I truly believe that praying about your situation will help you tremendously...which I'm sure most of you have done.  My wife and I are doing what we can, saving what we can (which isn't much...a few hundred maybe) and letting God do the rest.  Do what you can do to improve your specific situation and let go...I know it's hard...I'm struggling with it right now.  I want a home for my family so bad I can't stand it...we have two small children (both under 2) so finding the right place is very important. To all of you who are thinking about buying a home, I wish you the best....we have to keep our heads up and not get discouraged...WE CAN DO THIS!!!
Message 7 of 65
Frequent Contributor

Re: The 580 or less club

Has anyone had any luck in getting approved for an FHA loan with one or more unpaid collections on your credit report?
-------------------------------------------------------------------------------------------------Fico Score Range 600-625 across the board
Message 8 of 65
Regular Contributor

Re: The 580 or less club

I just got an FHA at 6% with scores all below 580.  And I mean just got it.  Closed last Friday. 
 
Message 9 of 65
Frequent Contributor

Re: The 580 or less club

If you don't mind my asking did you have any lates in the last 12 months, or any baddies on your report? And who did you use? Were you applied automated or did you have to go manual. Hubby and I have found a house we really love but were going to wait until scores were at 620, but if there's hope, maybe we will apply sooner.
Message 10 of 65