1 year, 5 months ago
via realestate-qna.com
Is it difficult to buy a house with a low credit score?
I have a credit score of 600, can I still get a house loan? Is there any mortgage companies that give property loans to people with bad credit?
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M$1 Answer
It is very difficult to buy a house with a low credit score. With the economy just beginning to recover from the recession, banks are very unwilling to make loans to people who have low credit scores. You will be seen as a credit risk and, especially in this economy, you will either be charged a very high interest rate or completely denied a loan.
If you have a credit score of 600, it is highly unlikely you will get a property loan. You might get one. It will likely have a very high interest rate.
From activerain.com
-quote
I will sit here and tell you that any type of loan with a credit score lower than 620 will be harder to close.
-endquote
There used to be banks and mortgage companies that gave good property loans to people with bad credit. Fannie Mae, Freddie Mac and Bank of America used to routinely give property loans to people with low credit scores. After many of those loans defaulted (and at the same time as the loans defaulted), the country was thrust into the recession. To prevent that situation from happening again, all banks tightened their lending policies and won’t likely give loans to people who have low credit scores
If you have a credit score of 600, it is highly unlikely you will get a property loan. You might get one. It will likely have a very high interest rate.
From activerain.com
-quote
I will sit here and tell you that any type of loan with a credit score lower than 620 will be harder to close.
-endquote
There used to be banks and mortgage companies that gave good property loans to people with bad credit. Fannie Mae, Freddie Mac and Bank of America used to routinely give property loans to people with low credit scores. After many of those loans defaulted (and at the same time as the loans defaulted), the country was thrust into the recession. To prevent that situation from happening again, all banks tightened their lending policies and won’t likely give loans to people who have low credit scores
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
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