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I have $ 10,000 in student loans that i have not been able to pay after having to leave college and falling on hard times without graduating. My credit score has suffered and is now between 530-590. The loans defaulted in 2006 and i’ve been paying when i can since. I am interested in buying a small mobile home, roughly $ 20,000. I know that this is a very small mortgage loan, and with a large enough down paymeny… Is it possible that I could get the loan? The monthly payments would be around $ 200, freeing up more money to go to student loans… Any opinions on how i can make this happen?

3 Thoughts on With a credit score of 530, is there any chance of getting a mortgage loan?
  1. Reply
    February 4, 2014 at 3:27 am

    To get a mortgage you need scores of about 640 to 680 minimum
    Even with these scores you will not get the best interest rates, and they may require you to put more down.

    Major banks do not make mortgages for less than 50K
    You may find a small credit union or local bank that does them for 40K

  2. Reply
    timothy p
    February 4, 2014 at 3:59 am

    your score is about 100 points too low. Something else to consider is that student loans are with you forever. They can’t be discharged in bankruptcy and it is almost impossible to get out of repaying the debt. Get some type of arrangement to repay the student loan and wait a year for your score to rise before committing to a new loan.

  3. Reply
    February 4, 2014 at 4:25 am

    You will not you qualify for a $ 20K loan on anything.

    Your primary goal is to deal with these defaulted student loans. A student loan that goes into default can morph into a financial catastrophe. A student loan that stays in default can explode out of control and in 3 or 4 years this amount could turn into $ 30K. Student loans will always have to be paid back.

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