561 Credit Score Mortgage

Options for getting a mortgage loan with 561 Credit score

With 561 credit score, you have several options for a mortgage. Purchase or refinance through FHA or financing by private money lenders, aka hard money lenders. To obtain a HUD FHA loan, you must have at least 10% down and compensating factors such as low DTI (Debt to Income ratio), stable income, and reserves.

FHA, Fannie-Freddie, VA, USDA and Subprime, Non-QM loans

With poor credit of 561 you are not eligible for Conventional (Fannie- Freddie) loans, Va, or USDA. To find out if you are qualified for an FHA loan, explore https://www.hud.gov/program_offices/housing . You may be able to get a Subprime loan with LTV under 65%. Find out wht loan you qualify for with our FHA /Subprime eligibility calculator If your credit score is 580 or higher, you may need only a 3.5% down payment.


561 credit score mortgage

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Private money lenders for credit score 561

Despite having a low credit score, Private investors will refinance your mortgage as long as you have enough equity in the property or you put in a large down payment.

Owner-Occupied Residential FHA Owner-Occupied Residential Hard Money Non-Owner-Occupied Residential Commercial Vacant Land
Max Loan to Value 90$ 61.56$ 61.66$ 63.66% 51.01%
Programs FHA Hard Money Hard Money Hard Money Hard Money
Vesting Natural name Natural, Corporation, LLC Natural, Corporation, LLC Natural, Corporation, LLC Natural, Corporation, LLC
Tax Returns 2 years tax- Must documents showing ATR Alt documents or equity-only loans Alt documents or equity-only loans Alt documents or equity-only loans
Points 2.73 2.89 3.62 3.37 3.68
Rate 7.17% 11.12% 12.01% 11.52% 13.21%
Loan terms 30 years or 15 years 1—5 years 1—5 years 1-7 years 1-3 years
Property Condition Good condition Any Any include Fixer-Upper Any Unentitled land reduce LTV to 29.23

The Rates & Terms depend on the Loan-to-Value, credit, property location, condition, and local real estate market condition. Unlike the FHA loan, which has standard underwriting, private money loan programs differ significantly between lenders. It behooves you to contact and get quotes from at least three lenders before you make a decision. See a list of potential hard money lenders or use the Lendersa form to shop for your loan simultaneously with hundreds of private money lenders.

How mortgage brokers rip you off

561 is a low score; unfortunately, a small percentage of mortgage brokers could take advantage of your credit disadvantage by trying to charge you an arm and a leg. Therefore, it would be best if you compared 3-10 lenders' programs before deciding on the best lender, thus avoiding mortgage brokers' rip-offs and loan sharks.

Improve your credit score for mortgage

Credit scores of 625 or above will open the door for more loan programs and better rates & terms. If you are not rushing to refinance or purchase a property, consider raising your credit score before attempting a loan review. Check our recommended resources to improve your credit at the bottom of the page Improving your credit score will enhance your chances for better loans. Understanding how credit scores work is the first step to raising your credit.

Here are a few links to resources that could raise your credit score: https://www.usa.gov/credit-reports https://www.fanniemae.com/crediteducation https://myhome.freddiemac.com/refinancing


List of lenders who consider lending to borrowers with 561 credit:

  • Arbor Lending
  • 5001 Hwy 190, Suite B5, Covington, LA, 70433
  • We've been helping customers afford the home of their dreams for many years and we love what we do. There are a number of different types of home loans available to you, and it can pay to familiarize yourself with them. Luckily we’re here to help you choose the best type of home loan for your needs.
  • Admiral Mortgage Services LLC
  • 3456 Monarch Drive, Edgewater, MD, 21037
  • Admiral Mortgage Services was designed by loan officers for the benefit of the consumer. Our cutting-edge technology and strategic business relationships allows our customers access to all Conventional Financing options, as well as FHA, VA, USDA and more and even several great options for our self-employed customers
  • MSA Mortgage, LLC
  • 18 Mad River Green, Waitsfield, VT, 05673
  • The MSA Mortgage Team is committed to providing clients with high quality experience combined with low mortgage rates. Whether you are first time home buyer, purchasing your dream home, refinancing an outstanding loan, or consolidating debt, our highly experienced team of mortgage bankers can help make your dreams come true.
  • The Mortgage House
  • 7428 Old Jacksonville Hwy, Suite 80, Tyler, TX, 75703
  • The Mortgage House is a locally owned and operated mortgage brokerage firm. We specialize in Conventional, FHA, VA and USDA home loans. Whether you're looking to purchase or refinance we're here to walk you through the process! We will treat you with the respect due an esteemed customer and give you the personal service you deserve.
  • ServisFirst Bank
  • 2500 Woodcrest Place, Birmingham, AL, 35209
  • ServisFirst Bank is a full service commercial Bank focused on commercial Banking, correspondent Banking, cash management, private Banking and the professional consumer market, emphasizing competitive products, state of the art technology and a focus on quality service. The Bank offers sophisticated cash management products.
  • Colorado Mortgage Group Inc
  • 1490 Garden of the Gods Road, Suite A, Colorado Springs, CO, 80907
  • Our mission is to serve our customers with honesty, integrity and competence. Our goal is to provide home loans to our clients while providing them with the lowest interest rates and closing costs possible. Furthermore, we pledge to help borrowers overcome roadblocks that can arise while securing a loan.
  • The Mortgage Broker Group
  • 1401 N Central Expy, Richardson, TX, 75080
  • The Mortgage Broker group mission is to serve our customers with honesty, integrity and competence. Our goal is to provide home loans to our clients while providing them with the lowest interest rates and closing costs possible. Furthermore, we pledge to help borrowers overcome roadblocks that can arise while securing a loan.
  • Hollygrove Lending
  • Bristol Creek Dr., Nashville, TN, 37221
  • Hollygrove Lending is devoted to developing a relationship and track record with you. We aim to guarantee the highest level of customer satisfaction as we go the extra mile for your lending needs. Our mission is to help you get your next deal funded quickly and efficiently so you can focus on your properties.
  • Benworth Capital
  • 7000 SW 97th Avenue, Miami, FL, 33173
  • Benworth Capital was established to meet borrowers’ needs for fair and flexible, alternative and traditional lending sources when institutional bank financing is not appropriate or available. Benworth Capital is South Florida’s top private provider of alternative short-term, first-position residential and commercial mortgages.