Is it possible to get a mortgage when one borrower has a credit score BELOW 500?

Deal Score0

I was just told my Quicken Loans that since my fiance has a credit score below 500 that he can’t help us. Mine is about 600. With my income alone, I can’t get approved. But with his credit score, I can’t get approved. Any mortgage lenders out there have a clue what I can do?
I would appreciate no CRITISISM by answerers. I don’t need to be judged, thanks. Mind yourself.

I make great income,about 180,000 a year but was hospitalized and got behind mortgage, it effected credit score tremendously. I owe about 430,000 and have 488,000 to 500,000 in eqiuty.I would like to refi and take cash out.

  1. Reply
    January 30, 2011 at 4:30 pm

    Yikes. The short answer is no. With the recent tightening of lenders and banks across the board, they aren’t even lending to people with scores below 630, unless there is a ton of money being put down. And if there is a program for that low of a score, the interest will be atrocious.
    You two need to fix your credit, pronto.

  2. Reply
    January 30, 2011 at 4:38 pm

    A credit score below 500 is going to be a tough sell with the recent crack downs in subprime lending. You may have heard on the news today another subprime lender filed for bankruptcy. I would suggest waiting for your credit score to pick up before you try to get a mortgage loan at least until it hits 620.

  3. Reply
    Kenneth C
    January 30, 2011 at 5:28 pm

    No. A few years ago, it would have been yes, at high get a visit by Vinnie the Nose to break your legs if you don’t pay interest rates. However, with subprime lenders in the toilet, That would be a no. My only suggestion is to repair your credit and then get your mortgage. Maybe you two could possibly get a co-signer, like your parents or loved ones. Other then that, there is not much you are going to be able to do. Good luck.

  4. Reply
    January 30, 2011 at 5:38 pm

    Noah, from my experience… when there are two borrowers applying for a mortgage loan, who ever has the lowest middle credit score will dictate how much of the loan amount the lender will give. Under 500 you will need to scout a ‘hard money lender’, these lenders will require at least 30% down. Nothing is impossible…there is always away, keep your chin up! Daisy

  5. Reply
    January 30, 2011 at 5:51 pm

    Yes, but I would have to judge you and criticize you and tell you you’d be stupid if you tried to buy a house before getting your financial act in order. If you choose not to listen, feel free to join the ever growing statistics of homeowners in foreclosure.

  6. Reply
    January 30, 2011 at 6:51 pm

    Not anymore, I think you should patch up your credit first or else you will get raped by a loan officer on the interest rate…

  7. Reply
    January 30, 2011 at 7:43 pm


  8. Reply
    January 30, 2011 at 7:54 pm

    That should not be a problem getting a mortgage. My husband had a low credit score and mine is high. We got approved FHA with 3% down and a max loan of $ 200,000. It also depends on where you are planning on buying a home. Different states require certain things. If anything they will give you a loan, but with requirements that must be met before you close on your new home; such as doing whatever possible to get his credit score up and paying things off.

    I only have Illinois mortgage companies that I have worked with in the past and have been good, Great Lakes Home Mortgage, CountryWide Home Loans and Fidelity Mortgage. (They can all be found on

    Good Luck!!

    P.S. Rates are dropping on a 30yr Fixed its only 6.125%!!!! Get in while rates are low!

  9. Reply
    Quiet Giant
    January 30, 2011 at 8:10 pm

    You can, but it will cost you more than its worth, you will get an outrageous apr on you second mortgage b/c of you beacon score. Get the payments caught up, hold off on big expenses and once you get to apoint where you can make payments early do it. After six months to one year your score should be back in a lower apr range, where you have more flexibilty and hopefully more equity accrued to play with. Just like getting the job that pays that good, it takes time and hard work, Good luck.

  10. Reply
    resource man
    January 30, 2011 at 8:21 pm

    you should find this a valuable resource

  11. Reply
    January 30, 2011 at 9:12 pm

    Sell the house and move into something smaller. On $ 180k, you really don’t need a million dollar home (ok, not quite a million, but close enough). With that much equity, you can sell your home and buy one with the proceeds – no loan needed.

    Unless, of course, you’re in CA. I’d still sell the house and look for something smaller. With $ 500K down, you should have no trouble getting a mortgage.

    BTW – have you contacted your mortgage company yet? They may be willing to defer your late payments til the end of the loan. You’ll still have to pay the accrued interest, but this should look better on your credit report.

  12. Reply
    January 30, 2011 at 9:59 pm

    Delta Funding does sub 500 scores!

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