Most mortgage lenders seem to be going down to a credit score of 640 or so. There are a great deal of people that are below that and the lenders that they are trying to work with and lenders that you normally work with may not be able to go lower. There are some mortgage lenders that can go as low as a credit score of 500 with more of a down payment. The breakdown is like this Credit score of 580 would require 3.5% down on the purchase price. 560 would require 10% down and a score of 500 would require 25% down. There is certainly additional criteria-however- there s hope for individuals with lower scores.
This does raise a question with me though. If you have 25% to put down on a home– wouldn’t it be beneficial to use some of that money to pay off the debt that is dropping your score that low to begin with? –anyway that is just a thought.
If you have potential buyers struggling with a low credit score and they have the funds- I can connect ou with a lender that would be more than happy to speak with you and your buyer. They are able to generate loans for anywhere in the US.