Mid 500 credit scores

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Dave Zwierecki
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Mid 500 credit scores
Mid 500 credit scores - There are many home loan programs available out there for people with credit scores, or fico scores, in the mid 500 range. The mid 500 range consists of credit scores from anywhere between 530 and 570. Some of the programs that are available for credit scores are listed throughout this page.

There are many loan programs for people with mid 500 scores that will allow you to purchase a home with as little as 10% down. Some programs will even allow 90% financing all the way down to a 500 credit score. Loan programs in this niche change frequently, but most will require a full documentation loan, that will require you to prove your income, employment, and assets.

Most of these mid 500 score programs are designed to be short term loans for borrowers. It allows them to get into a home, get cash out, consolidate debt while waiting for their credit scores to improve so that down the line they will be able to finance a better rate/term loan.

There are benchmark scores that are important when getting a loan. Some programs only become available at certain credit scores. If your score is in the low 500's then chances are an interest only payment is not an option. The same with 100% financing. Usually the benchmark for 100% financing is at 580. However some lenders are now requiring 600.

This is why working with a mortgage professional that uses the "rapid rescore" technique is so important. Sometimes just doing a little credit fixing can make or break your next loan.

How To Own A Home, Regardless Of Your Credit - This special report will show you how you can own a home with VERY LITTLE MONEY DOWN and get LOW INTEREST RATES even if you have had a bankruptcy or less than perfect credit.

This may sound too good to be true but I encourage you to read all of this report before you make up your mind.

Home ownership is one of the key ingredients to building wealth in this country. Take any 100 people at retirement age and here is what you will find.

1 in 4 will be wealthy and financially secure

5 will still be working to make ends meet

36 will be dead

54 will be dependent upon family or charity for their support

By owning your own home you can start to build equity and create wealth. You will also no longer need to put up with noisy neighbors and landlords who dont fix things and keep raising your rent.

But What If I Have Had a Bankruptcy or Other Credit Problems?

Let me make something very clear here:


Bankruptcies are at an all time high. These occur for many different reasons:

1. Divorce
2. Business failure
3. Job layoff
4. Loss of income for work injury
5. Illness
6. Death in the family

I recently had a client come in who had filed a bankruptcy and was discharged 1 year ago. During our meeting she explained to me that she and her husband separated and he was obligated to pay her child support. During their marriage they had made bills which they were able to pay with both incomes. Now, they were separated and she was left with the bills to pay on her income alone.

To make matters worse for her, he didnt pay the child support he was ordered to pay. She was left with no choice but to file bankruptcy.

There are several MAJOR MYTHS that buyers, realtors and even some lenders have about working with buyers who had a bankruptcy or less than perfect credit.

MYTH: You have to wait 7-10 years after a bankruptcy before you can get a home.

REALITY: Since there are 2 different types of bankruptcy filings, lets look at each one separately.

Chapter 7: You may be eligible for a mortgage 2 years from the date of discharge. HOWEVER, if your bankruptcy was due to a situation beyond your control and you have re-established good credit, you may be eligible after only 1 year from the date of discharge.

Chapter 13: You may be eligible after making 12 on-time payments. Also, you must get a letter from the trustee of the court that purchasing a home will not interfere with your Chapter 13 repayment plan.

MYTH: I dont have a lot of money to put down.

REALITY: If you are able to meet the standards I just mentioned, your down payment will be 2 %. If you are a veteran you may be able to obtain a mortgage with 0 DOWN.

MYTH: I will have to pay rates so high that I wont be able to afford it.

REALITY: We currently offer single digit low interest rates. Currently rates are at the lowest level in almost 30 years. It is a perfect time to buy a home with an affordable payment.


You may have heard the term pre-approved or pre-qualified. In the real-estate industry we do things a little backwards. Here is a very common scenario.

You the buyer decide you want to move. You call a realtor and start looking for a home. Finally, you find the home of your dreams and your offer is accepted by the seller. Of course you will want to do a home inspection to make sure there is nothing wrong with your new home. The cost of a home inspection is generally $200-$300 and is paid at the time the inspection is done.

Next, you will need to go to a lender and get a mortgage. At the mortgage application you will need to pay approximately $469 for an appraisal and credit report.

After 3 or 4 weeks you will learn if your loan has been approved.

If your loan was rejected you have now LOST almost $1000.00 because the fees you paid are not refundable if your loan is rejected.


You can get pre-approved BEFORE you even go looking for a home. By being pre-approved you will know that your loan is already waiting for you and all you have to do is find your perfect home. You will also know how much you need to buy the home and what your monthly payment will be.


If you have had a bankruptcy or other credit issue, we will need to know why it happened and why you believe it won t happen again in the future. We will also need to show proof that it was "beyond your control" and you had no other choice.

Here are some ideas:

For spousal abuse, provide Police reports

For medical bills, get an Ex-parte order

If you had a work injury, provide proof of workers compensation, a Doctor or Employer note, or a letter from workers compensation attorney stating the date your first benefit was received and amount

For job loss, provide proof of dismissal, a Lay-off notice, or unemployment office records

For a business failure, provide tax returns for a most recent year if self-employed, and proof that you are no longer self-employed, such as current pay stubs and job verification

For a Divorce (Divorce itself is not an acceptable Separation agreement
reason for bankruptcy; however, if debts were Divorce decree incurred with two incomes and now only one, bring W-2 s or 1040 for most recent year filing jointly pays, it can be a compensating factor)
For not receiving child support, bring a court order for child support and a printout from child support enforcement office showing history and arrearage.

Your next step is to call and schedule a FREE 1 HOUR CONSULTATION and get the process started.

During this meeting we will discuss the mortgage programs that will best meet your needs. We will also try to make this program fit your needs and comfort level for a monthly payment and the amount you want to use to purchase your new home.

Also during this meeting we will run a full credit report. This is an extremely important part of the process. You may have heard horror stories about people who bought a home, applied for a mortgage and were told by their lender everything looked good. Three weeks later, their loan was denied because some bad credit showed up, that WAS NOT on the credit report during the first meeting.


There are 3 major credit reporting agencies in the United States: Equifax, TRW & CBI. When a lender runs a free preliminary credit report for you they will run 1 of the 3 agencies listed above. The problem is that not every creditor will report to the same credit agency. For example, your VISA card may report to CBI; your store charge card may report to Equifax; and your Credit Union may report to TRW.

During our meeting, we will want to run a FULL 3 agency credit report. This will allow you to know exactly what will be on your credit record.

This is the same report that could be used when you purchase your home, so you may not need to pay for it again.

If you have had a bankruptcy or other credit issue it is very common to have bills show up on your credit report as past due or behind, even if they were included in your bankruptcy or paid off in full. By having a full credit report, these errors can be corrected so you can get approved faster.


Credit report - "How is my credit report used in determining the category of financing available? Can I make it better?


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 Information listed above is to be used for educational purposes only and is not guaranteed

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