Credit score and mortgage loan

[Kumar Raja]

I am earning >200k this year. But due to a mistake my wife did I got a derogatory item last year. My credit score is 650 or around... can I get a mortgage loan or should I wait??

[Brian Geiger]

@Kumar Raja

@Anthony Simboli is right about the 650 credit score. In my opinion, you can increase your chances of getting approved by offering to put more down on the payment. Banks love it when people are putting more down because it creates alignment and the bank isn't taking as much risk. 

If you are getting a Conventional, then a 650 credit score may be too low and you may can get by if you suggest putting more money down.

However if you do a FHA or VA (Assuming you are a Veteran), the down payments are lower (VA can be 0% down) but you will have to pay Private Mortgage Insurance. I highly doubt your credit score will prevent you from getting a FHA loan. You should check with a mortgage broker to see your options. They can guide you through the lending process.

Hope this helps,