Is there a loan or a program available for someone wanting to purchase a home who has a FICO score of around 580, the negative items on my report are around 5-7 years old.I can purchase the home I am living in for 69,000 and it is valued on Zillow at 128,000. I have been living here for the past 4 yrs. The home is our family home currently in another family members name... Thanks

Stacy, it is possible to purchase the home with a "gift of equity" and there are lenders that may be able to help you with a 580 but you will likely not get a particularly good interest rate. Sounds like the reason for your low score is likely lack of recent positive credit to offset negative items in the past. If you had a 620 score I'd set up the loan as conventional so you would not have any PMI or FHA mortgage insurance to pay. If the owner is willing to be patient you could possibly improve your score in a matter of a couple months.

You may want to open a secured credit card account, where you deposit money at a local bank, which they use as security for a credit card. Treat the card with respect, buy a few items each month, and pay off the balance in full as soon as the credit card bill arrives. This should build your credit score in a few months. Then follow Phil's advice.

Hi Stacy, your family is allowed to do a gift of equity that would act as your down payment. However, you will need to get pre-approved first. Most lenders will not do home loans with a 580 mid score, but there are some that do. The loan officer will also be able to review your credit report to see if there is any way that you can increase your score. At 580 you have some options, at 600 you have more and at 620 more still. Best wishes,

the short answer is yes.. it's possible.. but the only way to know for sure is to apply which is why I suggest you contact a LOCAL mortgage broker and apply with them. Do not use the local "Big" bank, or one of those 50 states internet lenders or nationwide lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. 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. 480-287-5714 WilliamAcres.com