What is the highest interest rate I would pay with bad credit? Score is in mid 500's.

Hi Jennifer,You would need a 560 score to do most loans. Maybe USDA would do a loan with lower credit score.FHA would be the best bet with 3.5% down.

I recommend you get qualified with a mortgage broker/banker in Oregon. A broker can offer you a lot of different options and often the best rates. You might ask first if they do loans for people with credit in the mid 500s. Generally, it helps to be at least at 580 because you only have to come in with 3.5% down payment, whereas any lower you would need to come in with 10% down. A Broker experienced in working with someone with credit issues could work with you in getting to at least 580, but again make sure they do those loans for credit scores below 600 mid fico.

Much more info needed to advise you properly.. You seem concerned about the rate, but with a score in the mid 500's, you probably wont get approved.. Understand the real question would be "Why"... Why is your score so low? BK? Foreclosure? Judgement? Unpaid Student loans? Unpaid Taxes? Charge off or Collections? You could have a 750 credit score, yet with one of these credit deficiencies, you still might be denied.. Also understand that although there are lenders out there that do scores in the mid 500's, very, very few that apply actually get approved.. The lower the score the more strict the guidelines are and few that apply actually get a loan.. You are far better off getting with a loan officer, let them run your credit, and then let them advise you on what steps would be necessary to improve your credit... or get with a credit repair specialist.. but regardless, don't set yourself up for disappointment by believing you can get approved with a mid 500 score.. your chances are very slim unless you do something about your credit.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347