Answers.com > Answers > Categories > Business & Finance > Personal Finance > Is it possible to get a home loan with credit scores of 574 from Equifax 593 from Experian and 600 from Transunion?

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Yes. You can get a home loan with credit scores all the way down to about 500. But the amount you will qualify for and other conditions will vary according to your situation. Until a couple months ago, a person with a 593 middle score would qualify for a home loan with no money down as long as they could fully document their income with pay stubs and W2s, had a solid work history for 2 yrs, and maybe prove they had paid rent consistently for 12 months.

This is no longer the case. The mortgage market for these kinds of loans has changed dramatically over the last 3-6 months and now a 593 middle score will at LEAST have to put 5% down to buy a home and if current trends continue, 10% down will soon be required. A cashout refinance may be maxed out at about 90%. This all assumes that you don;t have major collections, liens, judgements, etc and a stable solid job history with a debt ratio below about 45%. Also expect to have to show where the down payment came from and have it in the bank 30-60 days before closing as well. This is the current trend in the market since the major reason for the current subprime market collapse is due to defaults on high LTV (low down payment) loans by 580-620 credit score borrowers. Many lenders are dropping no money down programs altogether or raising the scores to 620 or more. There are a few lenders left doing them at 600 but they are declining.

If you cannot document your income, expect to have an even higher required down payment with these scores. Probably the most you will get is 85% LTV (needing 15% down payment) and that is a stretch.

If you are a 593 middle score borrower, you either need to move quickly to buy a home, or expect to wait a couple years until the market recovers and realizes that they over-reacted. It will correct itself but it takes time. Until then then work to improve your score. In about a year I expect 100% to be available again regularly to 600 borrowers and 95% to 580-600. I expect them to require at least 2 omnths reserves sourced and seasoned though.

One other option you may look at is FHA. You'll only need 3% down.But they won;t let you have open collections or judgements.

Best advice - find a top quality mortgage broker in your area - someone with FHA approval who can review your entire file and discuss options with you.