Hi guys,

I have a buyer with a 535 credit score and one 30 day late in the last twelve months. Can she get financed?

I am not a lender or in the mortgage business, but she will def have a hard time if she can get financed. I would suggest attempting a "goodwill request"' to get the recent late off of her report and trying to clean up her credit.

If she does get financed it will not be a good rates.

Yes if the buyer has a significant down payment. They could do a sub-prime loan. (yuck 10%+) I have 1 lender who allows FHA to be used down to a 540 credit score. So to have an opportunity for FHA the score needs to increase 5 points.

I can't see lenders risking that type of loan when loans are sold at less than par. Best way to go is to qualify her for an FHA loan

Most lenders look for 580. FHA has no minimum credit score requirements---my lender will do down to 500. I would call mortgage brokers as opposed to banks.

Top Agent could you see if your lender would reveal the investor who allows 500 scores still?

Just to clear up confusion. FHA's guidelines have no credit score requirement. However, the investors who fund or buy FHA mortgages do.

I suggest sending your buyer to someone who can go over the credit report with an eye to figuring out the backstory. Only having 1- 30 day late in 12-24 months does not result in a 535 score. Are there medical lates or collections? Is there a bk in the past? Have all the bk items been properly rated on the credit report? ie: Were all the bk accounts reported as released in bk? etc. Does the client have credit with good payment history that is not being properly reported? Does the client need to build a stronger credit score by opening more tradelines? You have to know the back story to see if you can figure out why the score is 535 with only a 30 day (revolving or mortgage?) late and then make a plan to raise the digits by either correcting the erroneous info or building positive credit history to offset the ugliness of the past and make a timeline to homeownership. Add another one to the pipeline. Stay in touch and they will work with you cause you solved their problem and they trust you. They dont want to have to work through all these issues again and they want a home. Your the man!