559 Credit Score Mortgage

Options for getting a mortgage loan with 559 Credit score

With 559 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 559 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.


559 credit score mortgage

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Private money lenders for credit score 559

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$ 61.46$ 61.56$ 63.5% 50.95%
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 2.77 2.91 3.64 3.39 3.7
Rate 7.2% 11.14% 12.03% 11.54% 13.23%
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

559 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 559 credit:

  • Sentry Credit Union
  • 1800 North Point Drive, Stevens Point, WI, 54481
  • Sentry Credit Union was founded in Stevens Point (WI) back in 1935 by Sentry Employees. In 1935, Sentry Insurance was named Hardware Mutual Casualty Company and SCU was named Hardware Mutual Casualty Credit Union. The Credit Union was incorporated as a cooperative, non-profit organization owned and managed by the Members.
  • Progressive Lending Solutions, Inc.
  • 2277 West Highway 36, Suite 304, Roseville, MN, 55113
  • Progressive Lending Solutions, Inc., and their entire support staff offers over 100 years of experience in the mortgage industry. We are committed to providing our clients with continuous feedback and communication, fast approvals and excellent customer satisfaction. Progressive Lending Solutions prides itself on incorporating unparalleled
  • Sky Minor Real Estate
  • 2272 Colorado Blvd, Suite 1310, Los Angeles, CA, 90041
  • "Hello! My name is Sky Minor, I'm a Realtor and Mortgage Lender in Los Angeles, and I love my job! I first became interested in Real Estate after reading Rich Dad, Poor Dad while eating ramen and saltine crackers in the back of my band's tour van. Initially entering into the industry as a Mortgage Loan Officer in 2003,"
  • Civic Financial Services
  • 2015 Manhattan Beach Blvd, Redondo Beach, CA, 90278
  • CIVIC is the lender that empowers investors through excellent service. We are backed by Wall Street and have the resources that support our commitment to work swiftly and tirelessly until your deal is done. We simplify and streamline the lending process through modern innovations, proactive communication, and hard work.
  • CU Hawaii Federal Credit Union
  • 476 Hinano Street, Hilo, HI, 96720
  • CU Hawaii, a federal credit union serving Hawai`i Island. We’re passionate about seeing our members succeed. The spirit of Hawai`i Island is the spirit of possibility. We see the potential in people, businesses and the community and get involved to help turn those possibilities into realities.
  • BNC National Bank
  • 7007 College Blvd, Suite 600, Overland Park, KS, 66211
  • Your home is one of the greatest investments you’ll make. Let BNC help you by taking the guesswork out of securing your mortgage loan. BNC National Bank is a full-service community bank dedicated to providing deposit accounts, commercial lending mortgages, online banking and wealth management products and services to businesses and consumers.
  • Premier 100 Mortgage
  • 710 Kipling St, Lakewood, CO, 80215
  • At Premier 100 Mortgage, LLC all of our underwriting and closing is done in-house, allowing us the greatest measure of control and communication throughout the process, from pre-qualifying to closing. We also have access to the most competitive rates and program offerings on conventional, FHA, and VA mortgages.
  • APEX HOME MORTGAGE LLC
  • 6909 W Ray Rd 15-109, Chandler, AZ, 85226
  • Apex Home Mortgage LLC is committed to security and privacy of the personal information. This privacy policy applies to that information that you submit via this website, and that Apex Home Mortgage LLC receives via this website. It does not apply to the practices of businesses and people with which we have no affiliation or control.
  • Express Funding Mortgage Co.
  • 1237 Camino, Suite I, Del Mar, CA, 92014
  • Express Funding Mortgage Company was founded in 1998 by Brad Shoemaker with the goal of becoming the San Diego mortgage broker of choice for local San Diegans. Express Funding Mortgage specializes in residential mortgage financing to homeowners and buyers anywhere in California. We offer some of the lowest conforming.
  • Sunny Lending LLC
  • 839-b Quince Orchard Blvd, Gaithersburg, MD, 20878
  • Sunny Lending LLC has a combined 25+ years of experience in the mortgage industry, including both residential and commercial mortgages. Our staff commands a wide range of experiences working with different banks and financial institutions. We provide unique service to better serve your financial needs.
  • My OK Home Loan
  • 1401 Health Center Pkwy, Yukon, OK, 73099
  • My passion is to positively impact the lives of individuals & families by providing wise mortgage advice & Godly direction to improve their financial future. All home loans, FHA, VA, Conventional, Jumbos, USDA and Section 184. Purchases or refinances and also Jolynn has the knowledge and expertise to help you
  • First Source Financial
  • 1320 S. El Camino Real, Suite A, San Clemente, CA, 92672
  • For the past 26 years, I’ve been helping Southern California home buyers and homeowners navigate the home loan process, making it as simple and stress-free as possible for my clients. I am committed to offering the best rates at the lowest cost and finding the right loan for your unique financial situation.