Hello, I would like to buy a house in 2025. However, my credit score is 600. I will have at least 50% down and am looking at purchasing a home for around 250,000. I am also 62 years old, work full time with an income of 66,000. What are my chances of getting approved for a loan?
You can qualify for an FHA loan. To qualify for an FHA-insured loan, you need a minimum credit score of 580 for a loan with a 3.5% down payment, and a minimum score of 500 with 10% down. You will pay 1.75% upfront mortgage insurance, which is always there for everyone in FHA. For down payments exceeding 10%, you will have to pay 0.55% insurance per month for up to 11 years. Under 10% deposit you will pay 0.55% for the life of the loan.
@Peyton
Do FHA loans require paying mortgage insurance even if the down payment exceeds 20%?
Ari said:
@Peyton
Do FHA loans require paying mortgage insurance even if the down payment exceeds 20%?
Yes
Ari said:
@Peyton
Do FHA loans require paying mortgage insurance even if the down payment exceeds 20%?
Yes, FHA requires mortgage insurance regardless of the down payment size.
Ari said:
@Peyton
Do FHA loans require paying mortgage insurance even if the down payment exceeds 20%?
They also allow credit scores in this range. MIP is the cost of getting a mortgage with that low of a score.
FHA qualifies, also check with local banks. A lot of times they have first time home buyer programs with lower credit scores.
You can look into an FHA loan. This program allows down to the score you have mentioned. If I can help further, let me know.
Why’s your credit score low? I used Lexington Law to remove collection items. You can also do it yourself.
This is more within your reach than you can imagine. It is TOTALLY doable. The first thing to do is get your credit score up because you don’t want to pay a high interest rate. I got a quick question for you though, what kind of monthly liabilities are you supporting right now that show up on your credit report like car payment student loans credit cards personal loans etc.?
Loan officer here, yes you can get approved for a mortgage with a 600 Fico score, it’s not uncommon. If you are interested in increasing the credit score you have to figure why it is low.
You may be able to increase your score by paying off debts, if you can get your score over 620 and you have that much down you might get an automated approval on a conventional loan, which would be better than FHA, as it would not have PMI.
Besides the suggestions already present, you could do a NACA loan if needed.
What state are you located in? You can definitely purchase with that score!
Hayden said:
What state are you located in? You can definitely purchase with that score!
I am currently in NC, but want to move to SC
Really good chances with FHA.
FHA is doable with 580. The underwriters like 50% down.
At 62 look at cheap apartment homes that you can settle down in with cheap rent or elderly neighborhoods. I know it’s not the type of house you want but owning a home paying a mortgage and taking care of a house is going to be wayyy too much at 70 years old. If you really want to… look into USDA and FHA loans ita good but require a 3 percent down payment and closing costs. Look in bank of America down payment and closing costs grant and see if you qualify can easily have that paid for you instead of coming out of your own pocket.
How do you have 50% down?
Phoenix said:
How do you have 50% down?
savings and inheritance.