490 Credit Score Mortgage

A hard money mortgage loan with a 490 Credit

With a 450 490 credit score, your only option for a mortgage is through private money investors, aka hard money lenders. Other types of loans are entirely off limits regardless of your income, cash in the bank, or low LTV. You will need to raise your credit score to at least 500 and preferably 580 to become eligible to obtain a HUD FHA loan, or a subprime loan.

To find out the requirements for an FHA loan, explore https://www.hud.gov/program_offices/housing or enter your data here into our FHA loan eligibility calculator and alternative options.


490 credit score mortgage

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Private money lenders for credit score 350-499

Despite having a poor credit score of 490, private investors through hard money brokers will lend you money to purchase a new property or refinance the existing property as long as you have a large down payment or enough equity in the property.

Owner-Occupied Residential Hard Money Owner-Occupied Residential Commercial Vacant Land Conventional FHA, VA, USDA, Non-Qm
Max Loan to Value 60.21% 60.31% 61.5% 50.2% N/A
Programs Hard Money Hard Money Hard Money Hard Money N/A
Vesting Natural, Corporation, LLC Natural, Corporation, LLC Natural, Corporation, LLC Natural, Corporation, LLC N/A
Tax Returns Bank statements or other documents showing ATR Alt documents or equity-only loans Alt documents or equity-only loans Alt documents or equity-only loans N/A
Points 3.16 3.89 3.64 3.95 N/A
Rate 11.39% 12.28% 11.79% 13.48% N/A
Loan terms 1—5 years 1—5 years 1-7 years 1-3 years N/A
Property Condition Any Any include Fixer-Upper Any Unentitled land- reduce LTV to 26.23 N/A

The Rates & Terms depend on the Loan-to-Value, credit, property location, condition, and local real estate market condition. Unlike the FHA loan, which has standard underwriting, private money loan programs differ significantly between lenders. It behooves you to contact and get quotes from at least three lenders before you make a decision. See a list of potential hard money lenders or use the Lendersa form to shop for your loan simultaneously with hundreds of private money lenders.

How mortgage brokers rip you off

490 is a low score; unfortunately, a small percentage of mortgage brokers could take advantage of your credit disadvantage by trying to charge you an arm and a leg. Therefore, it would be best if you compared 3-10 lenders' programs before deciding on the best lender, thus avoiding mortgage brokers' rip-offs and loan sharks.

Improve your credit score for mortgage

Credit scores of 625 or above will open the door for more loan programs and better rates & terms. If you are not rushing to refinance or purchase a property, consider raising your credit score before attempting a loan review. Check our recommended resources to improve your credit at the bottom of the page Improving your credit score will enhance your chances for better loans. Understanding how credit scores work is the first step to raising your credit.

Here are a few links to resources that could raise your credit score: https://www.usa.gov/credit-reports https://www.fanniemae.com/crediteducation https://myhome.freddiemac.com/refinancing


List of lenders who consider lending to borrowers with 490 credit:

  • Citizens Progressive Bank
  • 301 Main Street, Columbia, LA, 71418
  • We prefer to keep our focus on the local community, and our relationships in the towns we serve. While we may be small in size, we are big on our neighbors. Wear a suit or overalls when you come inside, it’s all the same to us. We value face to face deals and handshakes. And we’re big on getting to know your name, your family.
  • Central Jersey Police & Fire Federal Credit Union
  • 2430 Hamilton Avenue, Trenton, NJ, 08619
  • The Central Jersey Police & Fire Federal Credit Union is proud to be a member-owned, not-for-profit financial cooperative dedicated to serving its members. Our motto is “People Helping People.” We are all working together to help each other meet our individual financial goals. The credit union is a nonprofit, cooperative financial institution.
  • Legacy Group Capital, LLC
  • 400 112th Avenue North East, Suite 400, Bellevue, WA, 98004
  • "A Premier private lending company, we build healthy returns through real estate investing and lending opportunities. We partner with builders, real estate investors and homeowners to help them achieve their goals in real estate acquisition through a premier lending platform like no other."
  • Perna & Associates
  • 135 S. Main Street, Coopersburg, PA, 18036
  • The Perna & Associates Mortgage Solutions Team have experience servicing home buyers and owners, both residential & commercial customers for the past 29 years.Licensed by the Department of Banking & Securities as a Mortgage Broker in the state of PA, Perna & Associates Team have a history of working with borrowers in over 40 counties in the state
  • Stream Mortgage Group LLC
  • 3300 Benjamin E Mays Dr SW, Atlanta, GA, 30311
  • Our mission is to serve our customers with honesty, integrity and competence. Our goal is to provide home loans to our clients while providing them with the lowest interest rates and closing costs possible. Furthermore, we pledge to help borrowers overcome roadblocks that can arise while securing a loan.
  • Mortgage Source PA
  • 1346 S Atherton Street, State College, PA, 16801
  • As a mortgage broker, we work for you - not the bank. We work to fit you with the best loan program and lender to meet your mortgage needs and we represent you throughout the entire process. Giving you the personal attention you deserve, we will streamline the process for you from the application to the decision.
  • My City Mortgage
  • 1439 Monroe Ave, Suite 2, Dunmore, PA, 18512
  • My City Mortgage strives to provide applicants with a smooth, transparent loan process. Learn how we combine technology with unsurpassed customer service in order to provide customers with the most efficient mortgage process possible. My City Mortgage strives to provide applicants with a smooth, transparent loan process.
  • NorthWest Funding Group, Inc.
  • 802 Officers Row, Suite C, Vancouver, WA, 98661
  • We’re Northwest Funding Group, and we’re legacy builders. We build every loan experience around you, a unique approach that allows you to have a voice. You are heard, valued, and our investment in you is heartfelt. We love what we do and we know how to do it, which shows throughout every single step of the process.
  • Commercial Loan Group, LLC
  • 3300 Eagle Run Dr, Suite 103, Grand Rapids, MI, 49588
  • Commercial Loan Group, We have 29 years of experience serving all types of businesses from manufacturing to retail, as well as distribution and service-focused businesses; helping such businesses from closing their doors, banks calling loans, and bankruptcy, to recovery/successretail, as well as distribution and service-focused businesses.
  • Golden Valley Bank
  • 190 Cohasset Road, Suite 170, Chico, CA, 95926
  • At Golden Valley Bank we pride ourselves on delivering an experience unlike any other. Take our commitment to customers, staff and community - the foundation of true community banking. It's our passion to help businesses grow, help make dreams a reality and better our local economies.
  • Northwest Bank
  • 1750 Front Street, Boise, ID, 83702
  • Northwest Bank is a privately held community bank focused on serving the specific needs of businesses in Washington, Oregon, Idaho and Utah. Our experienced bankers deliver customized financial solutions and exceptional customer service. We do that by getting to know you, your business and your aspirations, first.
  • EPIC MORTGAGE, INC
  • 1515 N. Universtiy Dr Ste 111, Coral Springs, FL, 33071
  • Epic Mortgage, we serve our customers with honesty, integrity and competence, while providing them with the lowest interest rates and closing costs available. Furthermore, we pledge to help borrowers overcome roadblocks that can arise while securing a loan with many other lenders