550 Credit Score Mortgage Options
If you have a credit score of 550, you may still have the ability to qualify to find a mortgage to refinance or purchase a home. Your credit score is a major factor in not only whether you can find a loan, but also what your rate will be. Your credit score will also enable you to qualify for various loan programs. It can also close a few doors if your credit score is too low.
There are 550 credit score mortgage options to purchase a home or refinance.
A score of 620 is preferred but we have developed relationships with some of the best lenders over the past 15 years who can still help at 550. Let us help you to find the right program with the lowest rate possible.
Below are some loan options for individuals with a 550 credit score. Keep in mind that as scores get below 580, some of the requirements below may also change.
Now Check Your Credit Score (HERE)
FHA Loan With a 550 Credit Score
- FHA mortgage loans require you to provide pay stubs, bank statements, tax returns and/or W2s.
- All FHA loans have a mandatory mortgage insurance premium (MIP)
- A two year work history is required and gaps in employment can be taken into account as an exception.
- A 10% down payment is required for credit scores under 580.
FHA loans are the most popular option for people who have credit scores in the mid 500’s.
Subprime Loan With a 550 Credit Score
- Fully document income and assets
- Minimum of 15% down payment depending upon credit score
- PMI required if less than 20% down
- All property types permitted
- Minimum of a 2 year work history required
- Recent bankruptcies or foreclosures typically not accepted
Some of the subprime lenders have been raising their minimum credit score requirements.
VA Loan With a 550 Credit Score
- You will need to be in active duty a veteran, or spouse of a veteran
- You will need to fully document your income either through a job or VA benefits
- VA funding fee required at closing
- There is no down payment required for VA loans.
- There is no minimum credit score required by the VA
Many VA lenders will not work with Veterans with poor credit. However, we can help you. Read [VA Loan Information]
USDA Loan With a 550 Credit Score
- The property must be in a rural area as designated by the USDA eligible location.
- No down payment is required for USDA loans
- Most lenders require higher credit scores, but we can help with lower scores if you have compensating factors.
- Income and asset documentation is required
- A two year work history is required.
Read [USDA Loan Information]
We have been working with home buyers for over 20 years to help purchase or refinance a home regardless of their credit situation. Please contact us for a free consultation so we can come up with a plan to get you approved for a mortgage. Click here to get connected with us.
Frequently Asked Questions – 550 Credit Score Mortgage Lenders
Q: Can I get a mortgage with a 550 credit score?
A: There are mortgage options for home buyers with a 550 credit score.
Q: Is a 550 credit score bad?
A: A 550 credit score is considered to be poor and below average. However, we can still help you to purchase a home.
Q: Are the interest rates higher when you have a 550 credit score?
A: The interest rates will be higher when you have poor credit. However, you can always refinance to a lower rate when your scores improve.
Q: What is the minimum credit score needed to get a loan?
A: The minimum credit score needed to qualify for a mortgage is 500.
Q: How easy is it to raise my credit score?
A: For some people, raising the credit scores will be easier than for other people. It really depends upon what is on your credit report.
We are able to help you to find 550 credit score lenders lenders in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.