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540s credit scores...still get approved for a loan?

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
Regular Contributor

Re: 540s credit scores...still get approved for a loan?

well i dont know if this helps or not..but i got approved for a va loan with a score of 520 back in dec. 06...my interest rate was/is 6.75%
7/18/08 TU: 640 EQ: 607 EX: 570
8/08/08 TU: 648 EQ: 616 EX: 632
9/16/08 TU: 650 EQ: 622 EX:671
10/15/08 TU: 684 EQ: 620 EX: 658
10/30/08 TU 680 EQ 630 EX: 675
11/21/08 TU: 694 EQ: 628 EX: 658
Message 11 of 18
New Visitor

Re: 540s credit scores...still get approved for a loan?

There was a topic before this called the 580 and below club.
 
I am a direct lender for Prosperity Mortgage and we do FHA and VA loans still with a minimum fico of 500.  I just closed a loan last week that was a middle score of 502 so there are still lenders out there that can still do these loans but not many due to many lenders are trying to be conservative and limit the FICO score to 580 and above.
 
The whole point of FHA mortgages is to show a story on the ability of a client to repay a loan.  If you have low scores and no paid on time tradelines then most likely you won't qualify but if you have low scores and can show some tradelines that you have paid on time in the last 12 months then you have a strong chance.
 
If you feel like you need more clarification please feel free to contact me.
 
thanks
 
(Removed personal contact information) 


Message Edited by WhirledPeasPlease on 08-13-2008 04:47 PM
Message 12 of 18
Valued Member

Re: 540s credit scores...still get approved for a loan?

Twoeckarts:
 
You should not have any problem with a FHA loan. You only need a mid score of 580 for most companies. 
7/12/08: TU-602, Eq-597, Exp-581

07/24/08: TU-610, Eq-597, Exp-583

09/01/08: TU-610, Eq-614, Exp-600
Message 13 of 18
New Visitor

Re: 540s credit scores...still get approved for a loan?

Just to chime in with my numbers...

-Closed on our new home June 30, 2008 with First Citizens Trust Mortgage, Columbia, SC
-FHA 30 Year Fixed @ 6.25
-Financed $189,000 after $5,800 down
-Middle score = 610 on or about the 12th of June when all 3 pulls were done
 
Credit details:  6 months 120 days late on mortgage (foreclosure proceedings started) paid off in 2005 ($145k), 5 paid collections ($2k total) ranging from 2001-2007 (all paid in May of 2008), 18 inquiries, 1.5 years paid as agreed on car refinance installment loan for $7k, owing $5k.
 
So, it can be done...I started out in January, 2008 with a middle score around 545 and after paying off my collections, having one collection deleted, and coming up with $6k, it all worked out.  Oh, Salary is somewhere around $65k/yr.
 
Good Luck!
Message 14 of 18
Contributor

Re: 540s credit scores...still get approved for a loan?

how do i get to this thread, 580 and under?   I cannot find it!!!
Message 15 of 18
Regular Contributor

Re: 540s credit scores...still get approved for a loan?

Here's the link. It's been inactive for a little bit:

http://ficoforums.myfico.com/fico/board/message?board.id=loans&thread.id=17300

Bob
Message 16 of 18
New Visitor

Re: 540s credit scores...still get approved for a loan?

Can you give  me more info on how to apply?

Message 17 of 18
Established Contributor

Re: 540s credit scores...still get approved for a loan?

haley70:

 

This is a very very old thread.  2008.  Lending practices have changed dramatically since then with the recession and housing bubble.  I would post with your own thread and you may get some more up to date answers.

 

I don't have an answer to your question I just did not want you waiting on an answer to a thread from 2008.


Starting Score: 570 ish
Current Score:EX (701) EQ (711) TU (705)
Goal Score: 750
In My Wallet: GE Care Credit (8K) BestBuy (6K) BofA Cash Rewards Signature Visa (7K) Cap One Quicksilver (10.5K) Chase Freedom (4K) Lowes (6K) VS Angel Card (2.4K), Macys (4K)
Message 18 of 18