Credit Score in 28540>Question Details

Lisa, Home Buyer in Monroeville, PA

Bad credit....but make good money, can we be helped?

Asked by Lisa, Monroeville, PA Thu Nov 7, 2013

I'm looking for help. We were planning on buying a home in the near future, my husband makes over 100,000. with over time and without 85,000.00. We were going to go through the VA program, but last night he checked his FICO scores and they were not good.....two were in the upper 500 range and the other one was above 620 sadly that one wasn't with Equifax. Now on the other two they didn't have any of the GOOD credit, like car loans and personal loans that were never late and paid off. They have him still working in the army which was over 25 yrs ago. Now there IS a debt from over 10yrs ago, maybe 3 for under 100 each.....they were sold to another creditor and that is why they are STILL showing up.

We pay 1,100.00 for rent and we have never been late since we moved in over a year ago, a car payment we have never been late on. How can we get a home loan......we are getting up there in age and we figured if we didn't try now we might as well stay renters for the rest of life.

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Yes! FHA allows lenders to approve loans with a 580 credit score. A good site to go to get connected with a reputable lender that offer loans with poor credit is, The Lenders Network. If anyone can get you approved for a loan they can!

Good luck!
2 votes Thank Flag Link Wed Nov 13, 2013
They'll finance with that low of a credit score? That's great to know. I'm in a similar situation myself-- student debt up to my ears. All I can do now is keep on top of my payments and look for a mortgage in the future.
Jenn | http://www.ralainvestments.com/
Flag Thu Oct 23, 2014
Talk with Brandon Moore at Waterstone Mortgage 919-714-7438 office, 252-314-5863 cell.
His web site is Mortgagebymoore.com
1 vote Thank Flag Link Fri Nov 8, 2013
My recommendation would be to speak to a qualified mortgage lender who can guide you on how to get your credit corrected. Most mortgage companies have programs designed to assist couple like yourselves that need to get some items straightened out in order for their credit to look good to the mortgage companies. Once you speak with a lender you will have a plan for getting things corrected and being one step closer to purchasing your home.
1 vote Thank Flag Link Thu Nov 7, 2013
We are going to contact a mortgage broker in our area....everything bad that is on there we can pay off now....we only have 1 late payment on 1 credit card out of 5 in the last 3 months. So, we will talk with the broker and start repairing the credit and working with him. Its not unfixable....I'm just worried about the time frame, we can wipe out all debts in a week but it takes so long for it to get wiped off your credit.
Flag Thu Nov 7, 2013
We are going to contact a mortgage broker in our area....everything bad that is on there we can pay off now....we only have 1 late payment on 1 credit card out of 5 in the last 3 months. So, we will talk with the broker and start repairing the credit and working with him. Its not unfixable....I'm just worried about the time frame, we can wipe out all debts in a week but it takes so long for it to get wiped off your credit.
Flag Thu Nov 7, 2013
Lisa,
Consider having a solid answer to the following questions.
1. What caused the bad credit.
2. Has that situation been permanately reosolved?
3. Are you prepared to settle or remove the bad debts?
4. How long has current job been established?
5. Is this job contractual or dependant on government contracts?
6. What is the age of the income earner?
7. What is the price point at which you want to buy? This is important.
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The BEST approach is to spend the 6 to 18 months needed to correct your credit report and maintain timely payment history. These requirements are in place to PROTECT you.
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Too often, citizens are impatient and insist on flying too close to the sun. For those there are options that are more costly.
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Now would be a good time to CALL, don't use that 'contact' link if you are serious, a real estate professional to discuss your goals and your repsone to question 1-7. Your agent will then be able to identify the most appropriate real estate to purchase AND the lender most effecient at providing solutions for situation like yours. Very often this could involve credit counseling (fixing credit history) and optimizing your resources to create a more influential credit report.
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You mentioned you are 'getting up there in age' in your question. This most certainly CAN work in your favor. If you are truly SERIOUS, pick up the pone and call a Monroeville, PA real estate professional.
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Don't want to do that?
Try contacting a local lender who has a track record of investing in your community through small business and home loans. Simply enter the destination zip code or city name and select an "A" or "B" graded lender and be prepared to follow their credit counseling and repair program.
Go to: http://www.BankingGrades.com

Best of Success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
Move to the Front of the Line (http://FirstLookHomes.com)
1 vote Thank Flag Link Thu Nov 7, 2013
Thank you, we can answer all those questions, POSITIVELY. We do not have so much debt that it would take forever to pay off. We can clear all of them with one pay check. We like many other americans do not look at our credit report ... I also was under the impression after 10yrs a bad credit would automatically get wiped off, but now they can sale your debt to ANOTHER collection agency and its on again as brand new. Thank you for the 7 questions....its a great place to start. Hopefully the mortgage broker we contact on Monday is as helpful as you and the others.
Flag Fri Nov 8, 2013
Hi Lisa, there are lenders out there that can help put you in a free credit repair program. Or there are some online programs for fees. Either way, you have options to get where you need to purchase a home. I've helped clients with low credit scores successfully and will be glad to guide you if needed. Feel free to call me anytime at (910) 388-8168 or email at cristina.jurado21@gmail.com. Maybe I can point you in the right direction or at least try if you don't already have an agent helping you out :). Cristina Jurado, Broker Associate (NC licensed), Century 21 Champion Real Estate.
1 vote Thank Flag Link Thu Nov 7, 2013
It might take 3-6 months, and there's really no telling EXACTLY because everyone's situation is different, BUT you need to open up installment loans or revolving accounts (like credit cards) that will report to all 3 Bureaus.

Generally speaking, you want to have 2-3 accounts open and actively reporting your timely payments to all 3 bureaus. (Unfortunately, many credit unions and car finance agencies DON'T report to all 3 Bureaus---it keeps their costs low for their members! plus it keeps you coming to them for the BIG ticket items if you don't have the patience to wait and build your scores at the other agencies)

Manage these new accounts properly which includes paying the bills on time each month, balance not exceeding 30% of the limit ever and carry a small balance each month.

Before you know it, you'll see results.

The derogatory accounts may or may not need to be addressed but you can consult with your trusted local mortgage guy. Ask your agent for a referral. Most of them know a few competent ones.
1 vote Thank Flag Link Thu Nov 7, 2013
Banks are going to use the middle score. AS long as you have 3 open and active accounts reporting your on time payment history to all 3 bureaus, your score will increase and it shouldn't take too long.

Any derogatory information (I.e. late payments or collection accounts) that report within the last two years will act as strong resistance of your credit score improving though, which is why I always encourage borrowers to make certain that you pay your bills on time in the year or two prior to buying a home.

I may have misunderstood your statement but when I re-read it, it seems that you have accounts open and active but they only report to one Bureau. That's very common, actually.

I know it's frustrating, but keep your eye on the prize of owning a home and it will occur.
Flag Thu Nov 7, 2013
We do have credit cards, and the amounts that are showing up as bad credit don't need installments we can pay those off, what is so upsetting is how the 3 reporting bureaus are 50 points off from each other. I know we can get a VA loan or USDA loan with his ONE FICO score but if they don't use that number then we cannot. We have been doing so well...paying all our bills not getting into debt and it seems its all for nothing. His credit was better when we were POOR.
Flag Thu Nov 7, 2013
We do have credit cards, and the amounts that are showing up as bad credit don't need installments we can pay those off, what is so upsetting is how the 3 reporting bureaus are 50 points off from each other. I know we can get a VA loan or USDA loan with his ONE FICO score but if they don't use that number then we cannot. We have been doing so well...paying all our bills not getting into debt and it seems its all for nothing. His credit was better when we were POOR.
Flag Thu Nov 7, 2013
Hi Lisa, It sounds like you need to do some work to repair your credit but certainly you would be able to purchase a home. I have a lender that is great with credit repair, if you would like to speak to them please give me a call and I will get you connected. Feel free to call or text me at 910-330-6103
1 vote Thank Flag Link Thu Nov 7, 2013
Are you in need of finance,has the banks rejected you or have you been frustrated by firms or private lenders,here is the last junction where your search for finance will be a history because we stop at nothing here in making sure clients demands are granted.

We are located in the U.S but we fund people in and out of USA,are you in need of biz loan,loan to clear existing debts,house/home improvement or school loans etc,we are into all kinds of funding at an affordable interest rate.

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0 votes Thank Flag Link Mon Feb 10, 2014
Another option is rent-to-own or owner financing. Many real estate investment companies will consider these options. For rent to own, they usually require some type of non-refundable down payment though which is credited towards the eventual purchase of the home if you fulfill your end of the contract. Of course, if you end up not purchasing the home, you would lose the deposit. And with owner financing, a healthy down payment is usually required as well but that depends on the owner. I own a real estate investment company and while we normally do traditional deals, we have discussed these types of options with buyers for some of our different properties. If you would ever like to discuss these options further, feel free to give me a call at 910 934 7849 (Mike). Feel free to check out our website at http://www.innovationrei.com for more info about my company. Thanks and good luck with everything!
0 votes Thank Flag Link Fri Jan 3, 2014
We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you have a dream of buying a home, here's some simple advice for you.

It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website. http://www.consumer-action.org/


Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE. http://www.consumer.ftc.gov/articles/0058-credit-repair-how-…


The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
1010 Northern Blvd. Suite 234
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes Thank Flag Link Tue Nov 12, 2013
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