Can i get a mortgage w/ 575?

[hampton83]

We inherited (partially) my mother-in-law's home, there is a reverse mortgage of 180,000 on the house and we would have to pay the brother 1/3 of the remaining proceeds after the home would be sold, it was appraised at 400,000. We would only need a mortgage for roughly 250,000 on a 400,000 home, our down payment would be the partial part of the equity that we inherited ($150,000). Is my credit score going to have a major impact on whether or not the bank wants to lend us money considering we would be putting down more than 50%? My husband filed for bankruptcy 2 years ago and while my credit isn't disgusting, my lowest rating is 575 (everything is in my name, that's why it's so low). Do you have any recommendations as to what lenders we should look at? The reverse mortgage is through Wells Fargo. Thanks!

[merla15]

Not very likely. Most places require a minimum FICO Score of 620. Call around and maybe a mortgage broker can find something that you qualify for. Expect to pay lots of points.

The bankruptcy or you or your spouse makes you a huge credit risk.

You realize that a reverse mortgage usually cannot be reversed?

[benon]

Absolutley can get a mortgage --- An FHA mortgage will go to a 560 fico score w/ 20% down payment which would be the equity aka gify of equity - I do this all day everyday. Go find a bank that does FHA mortgages -- 99% of them do. Good luck.

[chason58]

Highly unlikely to qualify with a score that low, and with you husband having a BK 2 years ago.

[favian]

actually yes. The rate may be a little higher.

Talk with a lender or several.