St. Louis Mortgage Help

Your Credit Score is one of the most valuable assets a person can possess, especially if you are considering financing a new home. Your credit score will determine if you can be qualified for a mortgage, it will determine your interest rate, it will determine your closing costs, it will determine what mortgage program, and more. If you would like help with your down payment it will determine if you qualify for a DPA program too. 


What is a low credit score? The average credit score in the United States ranges between 673 and 695 depending on who is supplying the credit score, so let's call the average credit score 684. The average credit score for a conventional closed mortgage application is over 700. Recently FHA/HUD made adjustments to their automated underwriting guidelines making it more difficult for borrowers with low credit scores and a high debt to income ratio to get an automated approval and the main reason was because their average credit score dropped below 680.

So, what is a low credit score? For a conventional mortgage anything really under a 660 score, unless you are utilizing the Home Ready or Home Possible programs and then it is a little lower. With FHA I use to say 580 or higher and you would be fine, but now a low credit score for FHA is going to be nearer to 620 unless your debt ratio is well managed.

FHA allows for credit scores down to 500 but if you fall below 580 it is an automatic required 10% down payment instead of the common 3.5% required down payment for FHA. Credit score does matter with FHA!

Can you get approved for a mortgage with a low credit score between 580 to 620, yes, absolutely. FHA recently made it more difficult to get approved but it is possible still. Besides FHA you only have the VA mortgage, for qualified Veteran, for low to poor credit scores. I am starting to see some Non-QM mortgage programs for low to poor credit borrowers but the down payment is huge and the qualification guidelines are very difficult.

How do you get approved for a mortgage if your scores are low to poor, low being 580 to 620 and poor from 560 to 580? I include the high side of poor because sometimes a minor tweak to a 560 score can kick the score up to 620 or higher.

Your first step to a mortgage approval with a low credit score is to find a mortgage loan officer that is willing and capable of working with you. Not all lenders are wiling or have the knowledge, ability, and experience to help you. 

In many instances a low credit score is only a minor tweak away from becoming exactly what you need to get approved, get a better interest rate, qualify for down payment assistance, purchase a new home with little to nothing out of pocket, qualify for the house you want, and all the extra benefits that come with a higher credit score.

With my low credit score borrowers I utilize my Credit Score Rescue Program to help increase credit scores very quickly. If done well and properly you can see credit score improvements within 2 to 4 weeks! When we pull a credit report generally we get the credit history, current credit trade lines, and the scores, with the Credit Score Rescue Program we also receive the POTENTIAL CREDIT SCORES.

Your potential credit scores come from the 3 credit bureaus, TransUnion, Equifax, and Experian and it is their factual feedback as to what your scores can be within 30 days of execution of specific action steps. If the scores you have are too low for what we want or need but your potential scores provide you with a better situation then we will order from the 3 bureaus your Action Plan to higher scores. 

The Action Plan will tell us exactly how to get the biggest bang for your investment into improving your credit score. But, it also allows us to play with the Action Plan to possibly reduce the investment needed to get that BIG BANG results to a more affordable option to get us exactly what is needed. 

The Credit Score Rescue Plan is something I have not experienced in over 2 decades as a mortgage loan officer. I now work with a lot of new home buyers that were turned down previously by other lenders, thought their credit too low to own a home, or we simply used the program to help improve the mortgage application. Learn more about the Credit Score Rescue Program.

HOME BUYER TIP: if your scores are low and you are wanting to purchase a new home and are working on your credit scores, STOP! I see it too often that the DIY work of future home buyers has hurt them because they have done the wrong right thing. Let someone like me help and consult with you, BTW, paying off collections can actually hurt your credits scores, (hint). Want More Tips about LOW CREDIT SCORE APPROVAL?

I can and want to help you qualified for a mortgage for your next new home! Go to my website at www.bobrutledge.com at my website you will find more help and how to reach me. Would you like to SCHEDULE an APPOINTMENT to ask questions, get advice, or to get pre-qualified, I would welcome to hearing from you.

My name is Bob Rutledge and I have been a Mortgage Loan Officer in the St. Louis MO area for over 2 decades. I specialize in first time home buyers, renovation mortgages, and helping home buyers with low credit scores improve and strengthen their home buying position.