Credit Score Affects Mortgage Loan Approval

Q: My husband has a credit score of 470. We checked it and found that he is listed twice as not paying his auto loans. Can we still get approved for a mortgage of $74,000 with $25,000 down?

A: It’s unlikely that you will be approved for most types of home loans with a credit score of 470. During these troubled times, most conventional lenders are looking for borrowers with a credit score of at least 720. FHA lenders are looking for credit scores in the upper 500s. For borrowers with lower credit scores, some lenders won’t touch them and other lenders might but at a significant additional cost and higher interest rate.

If you can prove that you paid off these car loans, then you should dispute the information with the credit reporting bureaus. You can file a dispute online at each of the three credit reporting bureaus’ online sites.

If you prove that the loans were paid in full, your husband’s credit score should rise dramatically. Once your credit score is at least 580, you should be able to qualify for an FHA mortgage, especially if you’re willing to put down more than 30 percent.

March 20, 2009


Rate This Article
1 Star2 Stars3 Stars4 Stars5 Stars (1 votes, average: 5.00 out of 5)
Loading ... Loading ...
Related Topics
, , .
View our other articles that are related to this post.

© Ilyce R. Glink. All rights reserved. This content may not be used, distributed, syndicated, compiled or excerpted in any medium or form without written authorization from Think Glink, Inc. For information on syndicating ThinkGlink.com please contact us.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>