How much does a foreclosure lower your credit score?

How can you buy a home with a credit score at 551 and a foreclosure on your credit report?

• Answer:

  With a higher interest rate. You will able to purchase a home with a subprime mortgage. What this means is your rate will be much higher than if your credt score was higher. It may be smarter to consolidate your debts and raise your credit score before purchasing a new home. Good luck! Henry Most conventional programs have a 580 credit score requirement for 100% financing for purchasing a home. At 551 you have the option of either contributung 5-10% down payment on a conventional loan or attempting to obtain an FHA insured mortgage which does not have credit score requirements. The foreclosure can also affect your down payment requirements and interest rate but that depends on the time that has elapsed. If you need any further information on either option feel free to contact me at 214)607-1445 or [email protected].