Is it possible to get a mortage loan in todays market with a fico score of 597

A credit score of 597 is considered subprime…and those loans are gone. You only hope…and it’s probably an outside shot, is some of the new FHA loan programs. I’m afraid a lot of the new programs are more hype than real, but it can’t hurt to call and find out.

Not everyone has the ability to do FHA loans, so pick a a local, reputable, FHA approved lender. If you have other positives to offset the negative credit score, like a large 401K or long time on the job…make that known from the outset.

Another thing to do is try to improve that FICO score. A couple of easy tips to improve the score is make sure any credit card balances don’t exceed 60% of the credit line. In other words spread your debt around or pay it down so none of your cards exceeds 60%. Start paying the minimum payment plus 20%…it shows you are not a “revolver”…and your score improves.

Hope that helps…