500 Credit Score Mortgage

Options for getting a mortgage loan with 500 Credit score

With 500 credit score, you have several options for a mortgage. Purchase or refinance through FHA or financing by private money lenders, aka hard money lenders. To obtain a HUD FHA loan, you must have at least 10% down and compensating factors such as low DTI (Debt to Income ratio), stable income, and reserves.

FHA, Fannie-Freddie, VA, USDA and Subprime, Non-QM loans

With poor credit of 500 you are not eligible for Conventional (Fannie- Freddie) loans, Va, or USDA. To find out if you are qualified for an FHA loan, explore https://www.hud.gov/program_offices/housing . You may be able to get a Subprime loan with LTV under 65%. Find out wht loan you qualify for with our FHA /Subprime eligibility calculator If your credit score is 580 or higher, you may need only a 3.5% down payment.


500 credit score mortgage

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Private money lenders for credit score 500

Despite having a low credit score, Private investors will refinance your mortgage as long as you have enough equity in the property or you put in a large down payment.

Owner-Occupied Residential FHA Owner-Occupied Residential Hard Money Non-Owner-Occupied Residential Commercial Vacant Land
Max Loan to Value 90$ 60.26$ 60.36$ 61.58% 50.23%
Programs FHA Hard Money Hard Money Hard Money Hard Money
Vesting Natural name Natural, Corporation, LLC Natural, Corporation, LLC Natural, Corporation, LLC Natural, Corporation, LLC
Tax Returns 2 years tax- Must documents showing ATR Alt documents or equity-only loans Alt documents or equity-only loans Alt documents or equity-only loans
Points 3.25 3.15 3.88 3.63 3.94
Rate 7.5% 11.38% 12.27% 11.78% 13.47%
Loan terms 30 years or 15 years 1—5 years 1—5 years 1-7 years 1-3 years
Property Condition Good condition Any Any include Fixer-Upper Any Unentitled land reduce LTV to 29.23

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

500 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 500 credit:

  • Dream Cap Loans
  • 9740 Northwest 10th Terrace, Miami, FL, 33172
  • Get a mortgage loan with confidence. Get help from a licensed mortgage loan officer who will help you navigate through the difference mortgage broker services offered. Factors such as income, credit score, funds available, and qualifications can play a role in which type of loan you choose. Understand your options
  • Palmetto Citizens Federal Credit Union
  • 2200 N. Beltline Blvd., Columbia, SC, 29204
  • Palmetto Citizens exists solely to serve the financial needs of our members, not profit from them. We offer products, services and educational programs to help our members achieve their financial potential. We believe in providing a high level of personalized service while maintaining low loan rates, high savings rates and fewer fees.
  • The Good Buy Mortgage Company
  • 200 William Allen Lane, Decatur, TX, 76234
  • We offer a wide array of programs and products to fit your needs, Conventional, FHA, VA, Jumbo, Investor products, & 100% Financing for both purchase and refinances. With 30 years of industry experience and long-standing lender relationships, we set ourselves apart from the other mortgage companies.
  • SPRUCE MORTGAGE, INC
  • 430 Shelburne Rd, Burlington, VT, 05401
  • Spruce Mortgage, we understand what Vermont Homebuyers want – low mortgage rates, a quick turnaround, and honest advice. We know, because we’re Vermonters, too. Offering complimentary pre-approvals, loan estimates, and rate locks, it is no surprise as to why so many people choose us over our competitors
  • RE Capital Group
  • 26895 Aliso Creek Rd, Suite B468, Aliso Viejo, CA, 92656
  • "We are a wholesale mortgage company offering all loan types for purchase and re-finance. We provide the lowest wholesale rates and loan costs, fast closing within average of 14-21 days, and no broker fees are paid by the Loan Applicant/Borrower. In addition, we can offer: appraisal waivers, escrow impound waivers for tax and insurance,"
  • Professional Financial Mortgage Inc.
  • 18431 Yorba Linda Boulevard, Suite 3, Yorba Linda, CA, 92886
  • Professional Financial Mortgage, it is our mission to serve our customers with honesty, integrity and competence. Our goal is to provide home loans to our clients while giving 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.
  • Fidelity Bancorp
  • 3400 Inland Empire Blvd, Suite 101, Ontario, CA, 91764
  • Our mortgage experts give you the individual attention you deserve and treat you right. We know you're making a commitment in purchasing a home, refinancing, or tapping into your home equity. So we make a commitment to you: we can help you qualify, apply and be approved for the very best mortgage for you.
  • 7 Locks Lending LLC
  • 1750 Northwest Maynard Road, Suite 101, Cary, NC, 27513
  • Our mission is to serve our customers with honesty, integrity and competence. Our goal is to provide home loans to our clients that meet their overall financial goals while providing them with the lowest interest rates and closing costs possible. Furthermore, we pledge to provide a positive experience with the process centered around communication