Bad credit but solid incomes. Can we get a mortgage?

Q: My wife and I both have bad credit, but solid incomes. Will anybody take a chance on us?

A: Just because your credit isn't up to speed doesn't mean you can't get a mortgage or refinance. The FHA program allows for FICO scores as low as 580 -- and you only need to put 3.5% down to buy a home. With scores lower than that, you'll need a 10% stake, but simply having a low score doesn't mean you can't get access to credit -- it simply means that your avenues and choices are more limited.

Ask the expert
Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President,
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
Submitting your question...

Question received! Check back later to see if your
question gets published.

Q: How many times can I use my VA home loan?
OCT 31, 2019

There are three ways you can restore your VA eligibility so that you can take advantage of it more than once.

Read More
Q: Can my lender ask me why I'm buying a specific home?
NOV 06, 2018

Lenders can ask you why you are buying a specific home because there are different lending rules for different types of properties.

Read More
Q: Does the VA allow "asset depletion" mortgages?
SEP 20, 2018

Can you use private-sector retirement income and savings to help qualify for a VA-backed mortgage?

Read More