Why am I having trouble with a 500 score, when the ads say 500 scores fine?

In July of 2013, I became permanently disabled, cutting my salary by more than half. As soon as my bank (with whom I had been for 35 years) found out, they cancelled my line of credit (only $2,000), causing a trickle down problem with credit cards etc. I have tried to work with creditors, but not getting cooperation. Income is fine and LTV ok, they say. No mortgage lates.

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You may have a range of credit issues due to the "trickle down problem with credit cards" that could cause creditors to turn you down. Taking your question at face value, while you can get a mortgage with a 500 score, the requirements and options get limited. This could mean fewer loan providers (FHA is an option) and higher down payment requirement, among other things. Depending on how you previously earned income, the decline in income could also be affecting things. My advice is to go to lenders and be up front about this and ask what they can do without pulling your score yet. If they have a clear path, then let them proceed with the credit pull. | 02.12.16 @ 19:51
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$commenter.renderDisplayableName() — {comment} | 12.04.16 @ 18:43
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