Getting A Mortgage With A Low Credit Score Rating in Ohio

Contact our RE/MAX team anytime with real estate/financing questions you may have or to start the home loan or home buying process in Ohio.

If you’re shopping around for a home loan in the Cleveland, Ohio area, you may talk to many different mortgage brokers and banks. That’s a great idea if your credit rating is good or excellent as you have many options for a conventional or FHA mortgage. But what if it’s not? Where can you go to get a mortgage with a tarnished/low credit score? Is it possible to buy a home or condo with bad credit?

As Realtors, it’s our job to assist you as a home buyer the best way possible. Our team of agents at RE/MAX in Ohio are very experienced with home lending requirements, guidelines and the different options for our clients. We like saving our home buyers as much money as possible as that reflects on our guidance through the home buying process. We work for referrals and recommendations, so naturally we need to stay on top of the best deals out there to make our clients happy.

Recently, we’ve become aware of the new benefits of Wells Fargo FHA home loans and their requirements. To obtain a mortgage right now through a bank is harder than in the previous years. You’ve likely heard of crack downs on credit requirements and down payment increases over the last few years. So can you buy a home with bad credit? What if your credit rating is damaged or low? Can you get a mortgage with a credit rating under 600 in Ohio?

The answer is YES! We’re excited about the new FHA loan programs from Wells Fargo and think you will be very happy with the fact that these lower credit rating requirements can put you in a home when you thought it wasn’t possible. If you have bad credit or average credit, Wells Fargo may be the best place to obtain your mortgage. Let’s take a look at what you will need to get a home loan.

• If you have a credit score rating of 500-580 you can purchase a home using FHA with a 10% down payment using your own money. This money can’t be given to you by family or friends. The bank will require proof of the down payment in your account. The seller will contribute 3% of the purchase price at closing towards your closing costs. This is great news for people with bad credit that previously couldn’t qualify for a mortgage.
• If you have a credit score rating of 580-600, you can purchase a home using FHA with a 5% down payment using your own money. This down payment can’t be gifted to you by family or friends. A 3% purchase price will be contributed at closing and written into the purchase agreement. This is great news for home buyers looking to get a mortgage with a bad to below average credit rating.
• If you have a credit score of 600+, Wells Fargo’s regular mortgage guidelines for FHA loans begin at a 600 credit score rating instead of 640 like most other lenders, brokers, banks, etc. This is a huge sigh of relief for many potential home buyers in Ohio that thought they couldn’t previously purchase a home with bad credit.

If you’re struggling with your credit rating or trying to repair/improve your credit score and want to buy a home, this is wonderful news. Contact our RE/MAX team of agents anytime to begin the home buying process. We work with Laura Bainbridge, a Wells Fargo mortgage consultant. She has years of experience dealing with home loans and working for the best mortgage companies and banks in the business. We trust her work and think you will also. You’re in good hands with Wells Fargo and RE/MAX. The best of the best in real estate and mortgage business!