Getting a Mortgage with a
Credit Score of 580-620
Do you have a FICO credit score between 580 and 620, and are unable to get pre-approved for a mortgage? If so, call CityWorth Mortgage today to speak to one of our experienced and knowledgeable mortgage professionals. We work with prospective buyers with credit scores as low as 580, and we offer many low and no money down mortgage loan options.
Can CityWorth Mortgage get me approved with a score between 580 and 620?
Yes, we likely can! Many lenders will require scores of nearly 700 as a minimum FICO score for a mortgage, with scores in the mid-700's to be considered a good score. We understand that your FICO score isn't the total reflection of you as a prospective homebuyer, and we're happy to offer mortgage products at competitive interest rates and terms to individuals with FICO scores of at least 580! We've built a solid reputation as a lender who works hard to get everyone into the home of their dreams, and we're ready to work with you no matter what your credit history or score. Read more about loans with a low credit score here.
What is a FICO score, and how it is calculated?
FICO scores are named after the company that develops them: The Fair Isaac Corporation. This corporation developed a system of predictive analysis, which means that they take in information about your habits connected with loans, credit and other financial tools extended to you. FICO uses that information to develop predictions about how well you will, or won’t, repay loans when they are due in the future. They review all the information available on your credit reports and use that information to determine a score on a scale between 300 and 850. FICO also bases your credit score on the percentage of available credit you've used, the age of your credit history and how many attempts you’ve recently made to receive new lines of credit, such as loan inquiries. The higher your score is to 850, the less risky you are to banks and lenders, because you are likely to have very few negative remarks on your credit history or late payments reported by those who have extended you credit.
One of the problems that many people run into with FICO scoring is that negative marks, such as a late payment or a closed account, stay on your credit history for up to 7 years, and continue to impact your score long after your financial habits might have changed. They also don't consider an individual's circumstances: were you hit hard by the recent recession, found yourself underwater on your home and declared bankruptcy in order to get on top of your finances? Then you may find yourself with a score between 560-620 even if you’ve had a good job for the past several years and discharged your debt through bankruptcy court. In those cases, your score isn't representative of your ability to pay back your new debts going forward.