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Can we get approved for a mortgage with low credit?
We have a large down payment of $110,000. But low cr scores of 486, & 543. How can we get approval to buy a home for $239,000
Asked By Chris Richard | New Iberia, LA | 1303 views | Home Loans | 3 months ago
Answer(8)
Julianne Clark | Your Lowcountry Compass
Charter One Realty
Credit scores are based on a Buyers history of regular on time payments. You may need to work on boosting your credit score to qualify even for a $130K loan. Talk to a local hometown banks lenders or a credit unions. Sometimes in house loans base a borrows qualifications on non traditional sources or methods and vote for the approval.
- 3 months ago
Helpful (2)
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Todd Bartusek
Berkshire Hathaway Home Services
Great question—and thank you for sharing the details. While your credit scores are on the lower side, a large down payment like $110,000 can definitely help improve your chances of approval, even with traditional lenders.
Here are a few things to consider:
Some lenders offer FHA loans with credit scores as low as 500 if you have at least 10% down.
Manual underwriting or specialized loan programs may be available through mortgage brokers or credit unions.
A strong down payment reduces lender risk, which may open the door to non-conventional options or portfolio lenders.
I’d recommend reaching out to a local mortgage broker in your area—they can shop around with multiple lenders and may have more flexible options than a standard bank.
Wishing you the best of luck on your home buying journey—you’re closer than you might think!
— Todd Bartusek
Top 1% Omaha Realtor | Berkshire Hathaway HomeServices | All Metro Real Estate Group
Here are a few things to consider:
Some lenders offer FHA loans with credit scores as low as 500 if you have at least 10% down.
Manual underwriting or specialized loan programs may be available through mortgage brokers or credit unions.
A strong down payment reduces lender risk, which may open the door to non-conventional options or portfolio lenders.
I’d recommend reaching out to a local mortgage broker in your area—they can shop around with multiple lenders and may have more flexible options than a standard bank.
Wishing you the best of luck on your home buying journey—you’re closer than you might think!
— Todd Bartusek
Top 1% Omaha Realtor | Berkshire Hathaway HomeServices | All Metro Real Estate Group
- 3 months ago
- Helpful (2)
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Jason Craig
Coldwell Banker
Chris, having a large down payment like $110,000 definitely helps, but credit scores in the 400s will make it tough to get approved for traditional financing. Most lenders want to see at least a mid-500 score for FHA loans, and closer to 620+ for conventional. In Louisiana, I’ve seen buyers in your situation focus on two things: (1) working with a lender who specializes in credit-challenged borrowers, and (2) taking 6–12 months to boost scores by paying down revolving debt or clearing collections. With the size of your down payment, once your scores are up a bit, you’ll be in a strong position to qualify. A good local lender can look at your exact numbers and make a game plan with you.
- 1 month ago
- Helpful (1)
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Tyler Tapley
Crye-Leike
You can work with a loan officer and they can tell you what you should do. They will be able to assist.
- 2 months ago
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Amanda Courtney
REP Realty Group
Yes—low credit doesn’t automatically disqualify you. Government-backed loans like FHA or VA loans are designed for buyers with lower credit scores, sometimes as low as 580 (or even 500 with a larger down payment). Lenders also look at income, debt ratio, and payment history, so improving a few key areas can boost approval odds. Working with a knowledgeable real estate agent and lender team ensures you explore every available option and build a plan to get you to the closing table.
- 2 weeks ago
- Helpful (0)
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Tatevik Hovhannisyan
RE/MAX Optima
Getting approved with credit scores in the 500s is tough but possible, especially with your large $110,000 down payment. You might need to work with specialized lenders or consider FHA loans. A mortgage broker can help find the best options for you
- 2 months ago
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Rhonda Buckner
Buckner Homes Realty Inc
That is easy. I have an quick way to incresae your credit score. The minimum credit score needs to be 580. callme I can help 352-266-2637
- 2 months ago
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Margo Bohlin
Howard Hanna Rand Realty
Call me and I will have my Mortgage person see how we will get you into your new home.
- 2 months ago
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