My husband and I have a combined credit score of 597. Is it even worth applying for a loan or should we work on our credit for a couple more years and then apply?
How was your combined credit score figured? Can you give me what each of your credit scores are?
I think I used a formula a family member gave me. My credit score is 594 and my husband's 620.
Thank you for giving me your scores.
Normally lenders will use the lower of the two borrowers (in this cases yours) to determine the credit worthiness of the loan.
With your lower score at 594, I assume there have been a few things in the past that caused the low scores. Or perhaps you are new in making a name for yourself with credit.
I would think you may be a possible candidate for an FHA mortgage. In today's lending environment, FHA has the most relaxed credit requirements. However they do currently have a requirement of 620.
Sometimes the FHA underwriter can make an exception, especially if your husband is the primary wage earner, and does not have more that two 30 days late payments in the last 2 years.
You just have to try. Since I know very little about your credit file, I cannot tell you for sure. However, when I was in the mortgage business (I'm not any longer) I would have taken your loan application and let the underwriter make the call.