Approval with low Median score

[egaithe]

I'm not sure how to ask this....if a person with a 580 gets approved for a mortgage, what does the credit profile look like? I mean, obviously there's adverse issues for a score to be that low. What would a lender be looking for with a score so low?

[pgtackle2003]

They would look at all of the things causing the score to be low. They would look for charge-offs, collection accounts, CC debt. All of these things would be figured into your DTI ratio if approved. I haven't seen too many lenders that would approve with a score of 580

[Anonymous]

My husband and I have 580 mortgage scores and we should be going to TBD underwriting today because we haven't found a property yet. FHA 3.5% My husbands is because he literally has no credit. I have medical collections and old lates on Student loans that may never go away. Our lender doesn't believe there will be an issue. I will let ya know

[Anonymous]

Also the only thing that is counting toward our DTI is student loans and the car notes and CC, that's it. My medical collections do not count against our DTI

[egaithe]

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@Anonymous wrote:

My husband and I have 580 mortgage scores and we should be going to TBD underwriting today because we haven't found a property yet. FHA 3.5% My husbands is because he literally has no credit. I have medical collections and old lates on Student loans that may never go away. Our lender doesn't believe there will be an issue. I will let ya know

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Ok, so why the score is low is very important.

[Anonymous]

His is because he literally has no credit but our car notes so his credit is fairly new. thanks to those credit repair people 14yrs ago that removed EVERYTHING even the good stuff. Mine is because I have some old student loan lates that have since been consolidated and medical collections. That is why the score is low. But we meet the 580 3.5% down FHA requirement.