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I am a first time home buyer with less than perfect credit. Can i still get a loan?

by uwgksd78706 from Broken Bow, Nebraska. Feb 12th 2018 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

Much more info needed to properly advise you.. First, "less than perfect credit" is very subjective.. This is why lenders use credit scores to determine eligibility.. and not just one.. we run all 3 major bureaus and use the LOWEST MID score of ALL borrowers... And there are lenders who will go as low as 500 on credit scores, but also understand that the lower the score, the more strict the guidelines and few that apply actually get approved.. This all being said, understand that it takes much more than a credit score to obtain financing.. Income, type of income, job, down payment, debt load, etc, etc, etc... Without looking at your complete loan profile, it's impossible to say yes or no... if you really want to know if you can get financing, then you need to get off the computer and pick up your phone.. Then try contacting a mortgage banker/broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with a Banker/Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the banker/broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the big box banks. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Feb 13th 2018
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,729 contributions

Probably not, but maybe... Less than perfect doesn't give me enough information. Are you a 640 score, or a 480 score? As your score drops below 640, it gets harder and harder to get approved. There are, in theory, loans for those will low scores. They are hard to get, come at dramatically higher interest rates, and require large down payments. My best advice is take a few months to improve credit, then go look into financing. Finally, credit score alone does not make for a loan approval. Many times the issues that are causing low scores will get you denied.

Feb 14th 2018
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