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I know if you don’t have a 620 middle FICO score, you can’t get a loan. So I worked on it until I got the two FICO scores they’ll sell you above 620. Now that I think I can apply and get a loan (my income is high enough) I find out there’s a million other requirements. Not more than one late payment in 1-2 years, 2 year rental history, 2 year employment history, no liens, no unsettled collections, a bagillion other tiny things to look at and AGAIN wait for them to roll off. I mean if I barely have a 620, there’s obviously going to be a couple things on there. It’s like “Oh a 620 works as long as there is nothing bad on your report” I’m like “if there was nothing bad on my report I’d have a 700 not a 620. Any lenders out there that give loans to 620 FICOs or is it just a myth?

6 Thoughts on Is there an easier mortgage loan to get?
  1. Reply
    Univ Loves
    July 18, 2012 at 1:47 pm

    I believe so.

  2. Reply
    July 18, 2012 at 1:50 pm

    Are you working with a broker? They probably know far more lender than you, and they stay up-to-date.

  3. Reply
    July 18, 2012 at 2:34 pm

    No the days of easy loans are over because of all the buyers unqualified who ended up defaulting. The lenders will just keep making the requirements stricter.

  4. Reply
    A Hunch
    July 18, 2012 at 2:58 pm

    Sure there is mortgage lenders that will give you a loan. They don’t exist at the bank and they don’t exist at a legitimate mortgage broker, but all the people who respond to this note with contact information for a loan will be happy to lend to you. Your interest rate will be horrible, late and missed payment fees are very high, etc.

    There is NOTHING wrong with renting. In fact, in one way there is a bonus = it adds a LOT of flexibility. I do not understand why people who have a 620 credit score and have difficulty managing their money even want to own.

  5. Reply
    Go with the flow
    July 18, 2012 at 3:37 pm

    No mortgage lender will give you a mortgage.
    There are federal requirements and standards they have to follow.
    All items on your credit reports (in collections) must be paid off.
    These collection agencies will sue you in the future.
    They can garnish wages and come after assets.
    The bank will not loan to you since it knows that once this happens, your income will be less and you can lose the house.

    Make it a goal to have a home in less than 2 years.
    Keep asking here for help on negotiating settlements and fixing your credit.
    If you have credit cards, make sure you pay them in full each month.
    Credit card balances tend to cause serious damage to credit scores.

  6. Reply
    Cheryl G
    July 18, 2012 at 4:27 pm

    HUD/FHA loans are made for people such as yourself. There are still a zillion requirements, but they are more lenient.

    Bad loans have caused the crisis we are now experiencing. This isn’t the place to explain the whole mess, but now lenders are more regimented than ever before regarding limiting their risks. If you have liens against you, are chronically late, have outstanding collections and are unemployed, you have to face it. Nobody, not even HUD is going to take a chance on you.

    If you really want to saddle yourself with a mortgage, look for a rent-to-own. You can rent for a year or so and have part of the rent go toward buying the house. If at the end of a predetermined time period you decide to buy, you will have improved the outlook for getting a mortgage by being on time with rent payments. If you change your mind, or prove yourself unreliable, no problem. It’s a good idea to rent before buying in any case. Look around and see what you can find. You won’t be sorry.

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