Qualifying For Home Loans With Under 600 Credit Scores

Home Loans With Under 600 Credit Scores:

Most mortgage lenders require a 640 FICO  credit score. Minimum FHA mortgage lending guidelines on minimum credit score requirements is 580 FICO credit scores. Home buyers can qualify for home loans with under 600 credit scores as long as they have had timely payments in the past 12 months and meet all other FHA Guidelines such as meeting the debt to income ratio requirements, mandatory waiting period after bankruptcy and foreclosure, and other financial and credit requirements.

Home Loan After Bankruptcy And Foreclosure

If you have filed bankruptcy, there is a mandatory 2 year waiting period before you can apply for a mortgage loan. The waiting period time clock starts from the date of the discharge of your personal bankruptcy and cannot be waived by any mortgage lender. Mortgage lenders do require re-established credit after bankruptcy and no late payments after bankruptcy.  On a foreclosure, there is a 3 year waiting period from the date of the sheriff’s sale or the date the deed of the foreclosure was transferred out of your name. This date is so important and there is no getting around it. Many homeowners who have turned in their keys to their mortgage lender years ago still do not have the deed out of their names. Banks and mortgage lenders are in no hurry to get the deed out of the previous homeowner;s name and this causes the waiting period to get extended. For those who have had a foreclosure, make sure that your name is transferred into the bank’s name. The sooner this is done, the sooner the 3 year mandatory waiting time clock starts ticking so you will be able to purchase a home again.

Requirements To Qualify For Home Loans With Under 600 Credit Scores

To get mortgage loans for borrowers with credit scores under 600 is possible if you consult a mortgage broker who specializes in bad credit mortgage loans. Mortgage loans for borrowers with credit scores under 600 require 3.5% down payment as long as it is not lower than a credit score of 580. For those mortgage loan borrowers with credit scores between 530 and 580, there is a 10% minimum down payment requirement. Mortgage loans for borrowers with credit scores under 600 require that borrowers be employed and have more stricter debt to income requirements. Mortgage costs and mortgage rates are slightly higher for mortgage loans for borrowers with credit scores under 600.

Lenders Specializing Home Loans With Under 600 Credit Scores

I specialize in mortgage loans for borrowers with credit scores under 600 in California, Illinois, and Florida.  If you have had prior bad credit and have low credit scores and need a California,  Illinois or Florida home loan, please contact me at 262-716-8151 or email me at gcho@gustancho.com or you can always visit me at  www.gustancho.com.

2015 Mortgage Blog Post Article Update

This mortgage blog post article was last updated on December 8, 2015.

Gustan Cho, NMLS ID 873293

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The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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