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Danny, Home Buyer in Dallas, TX

Can i start looking for a home with a 585 Fico score?

Asked by Danny, Dallas, TX Mon Apr 1, 2013

My wife and i are looking to purchase our first home and dont know when to start the search. My Fico score is about 585 and im working on getting it higher by making payments on my student loans, which i have been on a 9 mos pament plan that is supossed to remove the collection status in May. I was told my credit would go up as soon as i came off the plan and i was wondering if we should start looking for a mortgage loan officer or just wait will we get our credit higher (my wife's is over 630).

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You can get an FHA loan with under a 600 middle score with some lending institutions but not many. I would recommend finding a broker or service to help you locate a reputable lender that can approve your loan at a decent rate. I have client's who have got approved and received a good rate at The Lenders Network with FHA and VA home loans.
4 votes Thank Flag Link Sun Jul 14, 2013
Danny: Raising your credit scores isn't that difficult especially if you are paying down debts and collections. The main thing to keep in mind is that revolving accounts are what make up the greatest percentage of your credit score. Without them you are missing out on what your credit scores could essentially be. I truly wouldn't start looking until your scores are above 620. You will want to open a secured visa and keep the balance at 30%. This will bump your scores dramatically. You may also want to talk to any family members who have open revolving credit with low balances to see if they are willing to add you as an authorized user as this will dramatically increase your credit scores as well. Just be careful not to get added on to an account that will topple your debt to income. Best of Luck; Christina Solorzano of Everlasting Credit Repair.
2 votes Thank Flag Link Fri Apr 12, 2013
Good morning Danny,

Please accept my honest and blunt advice based on 23 years as a mortgage professional: 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.


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.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528

*If you thought my answer was helpful, please consider giving me a "Thumbs Up" or "Best Answer." Thanks!
1 vote Thank Flag Link Thu Apr 11, 2013
We can approve FHA (3.5% down) loans with middle credit scores as low as 580 with no investor overlays.

Feel free to apply online at http://www.rhlapps.com/kjones or give me a call and I'll take your information over the phone.

K.C. Jones
RH Lending
214-432-0486
kjones@rhlending.com
1 vote Thank Flag Link Thu Apr 4, 2013
The only thing that cures bad credit is making on time payments for an extended period. It's not so much about whether you had a bankruptcy, because if it was 5 years ago and you have been making on time payments, your score is fine, maybe even high.

The plan or not the plan is not really the issue. Making the plan payments is. They must all be on time, not even a day late. Having open credit lines, like store cards, visa, mastercard, gas cards, and so on that you pay on time every month is what will raise your score. But, if you have collections, write-offs and the like, you'll have to take care of those, too. Eventually those paid collections will fade in importance.

Don't open or close trade lines, if you want to get a mortgage loan in 6 months or less. A new credit card has no payment history, so it drags down your score. Only payments on time on that new account will raise it back up.

If you close a trade line, your capacity to borrow will be reduced. If you have 2 credit cards, each half full, and you close one by transferring the balance to the other, then you will have no capacity left on the only open account. That's bad. Keep your credit balances low - no, you don't have to pay them off, just on time.
So, if you have a card that's at 80% or more of the maximum credit line, reduce the balance to at most 30%. Having it below 10% of maximum would be best, but the gain in points is small between a 30% balance and a 10% balance. Don't close the credit line.

A long-standing credit card you got in 1999 carries a higher weight than one you just opened, especially if paid on time. But keep the line active by periodically using it: buy some gas, pay it off when the bill comes. Don't buy unnecessary things just to have a credit line - that's bad budgeting. Use the cards for things you would buy anyway.

The good news is that regularly now I am receiving notices that lenders will do scores below 620, some as low as 580. Remember, lower scores means you'll have to put more down payment into the deal - sorry, no 3-1/2% down if your score is 599. And the mortgage insurance (MI) will be tacked on to your payment.

You can just join The Buyers Club and get free help repairing your credit.
Web Reference: http://www.Mortgages-TX.com
1 vote Thank Flag Link Thu Apr 4, 2013
Danny, Sounds like you have a good plan, but it wouldn't hurt to speak with a solid lender to see what else you can do to raise your score and to understand the requirements for each type of loan. I have a couple of amazing lenders I would be happy to refer. I could tell you story after story about these lenders who have helped get my clients closed after other lenders had failed to do so. Feel free to give me a call or email, and I am happy to help you out.

Thanks,
Leslie Wilson
Realtor
Keller Williams
214-734-7920
lesliewilson@kw.com
1 vote Thank Flag Link Tue Apr 2, 2013
It really doesn't make sense to actively look for homes until you are 100% qualified. Homes are selling fast today and you need to have your financing in order before you start putting in offers. The last thing you want to do is put in an offer, pay for an appraisal and inspection and then have to withdraw your offer because you are not approved.

Lenders will use the lowest mid-score of you and your wife. So it's the lowest mid-score that counts. Keep working on your credit as you are doing. Your credit may not improve that dramatically as far as your student loans are concerned. Collections will remain on your credit for 7 years but the older they become the less of an effect they have on your credit... even if they still do show up. You do need to keep student loans current as well as all of your debts or your credit will tank. When you damage your credit your scores will drop quickly but they will not go up as fast as they drop... it takes time.

Hope this helps.

_____________________________________________________
Don Groff | REALTOR® & Mortgage Broker
Austin Real Estate Pros & 360 Lending Group
o 512.669.5599 | m 512.633.4157 | listings@dongroff.com
websites: http://www.AustinListed.com | http://www.360LendingGroup.com
Web Reference: http://www.AustinListed.com
1 vote Thank Flag Link Mon Apr 1, 2013
It seems that your scores in your range should work. Lenders like myself can go as low as 580 when it comes to credit scores. Of course, your other finances will need to be in place as well including your income, debt, assets, employment, expenses, etc. The best thing for you to do is to speak with a knowledgeable lender like myself to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!

Brian Nguyen
Sr. Mortgage Banker
NMLS # 659743
Phone: 949.667.2887
brian.nguyen@nafinc.com
0 votes Thank Flag Link Thu May 8, 2014
Guaranteed financial at 2%.We offer all sort of angel financial ,Get more information on the financial that's right for you by contacting us via email:Homeloan1@live.com
0 votes Thank Flag Link Tue Feb 18, 2014
I'd recommend first contacting a lender to discuss your financial situation, getting pre-approved and then contacting a real estate professional for further assistance.
0 votes Thank Flag Link Mon Jul 15, 2013
You have several options! Go to thelendersnetwork.com I picked out a few homes I wanted using their Realtor they game me. Have an attorney they got me with working on my credit, and got me an investor to purchase the property, I pay rent until I can purchase so far so good, the Law Firm they get got me with has been great and looks like The Lenders Network has a lender that can get us closed once we have a 580 mid score. we love our home!
0 votes Thank Flag Link Sun Apr 28, 2013
I can definiately refer youl to a company that can help you improve your credit score, meaniwhile we can start searching for your new home.

Please call me soon to discuss.

Mario Rios, Realtor
Global Realty
214-202-8415
0 votes Thank Flag Link Sun Apr 21, 2013
You can certainly start but of course will be disappointing if you fine a home you love and cannot buy it at that time.
0 votes Thank Flag Link Sat Apr 13, 2013
Yes.......i would love to discuss the program we offer while we build your new home in Frisco! Please call Robin 4696674109
0 votes Thank Flag Link Sat Apr 13, 2013
There some mortgage company taking with 580 Score

they do in house finance keep for few years then you can refinance with better rate

if you need help let me know

there are some mortgage company information linked to my Website

go to http://www.johnhamidi.kwrealty.com

and check them out

Thanks
0 votes Thank Flag Link Sat Apr 13, 2013
Dear Danny

We have a great loan officer in our office that can help you to improve and qualify for loan

our service is free for you , we get paid by seller


please contact me at
http://www.johnhamidi.kwrealty.com


or
469-252-4677

also we pay $1000 from our commission to help our buyer closing cost


Thanks
0 votes Thank Flag Link Mon Apr 1, 2013
I'm an Ebby Halliday agent but besides mainstream ways to get a home, I have alternative programs where you do not have to have down payment or closing costs and is not credit score driven.

Meet with me --- yes, my services are free to you.... sellers pay brokers fees.
I know this sounds way too good to be true and you want to know catch unlike others telling you they can get you a loan under 600 credit score -- what they don't say is 10-20% down with those programs or higher interest rates.

This has no down side like that. There's no down payment and interest rates are right now at 3.50% for the 30 year but you can buy down the rate from there if you want.

I'll even give you references to talk to that have closed with this and one who is closing in a few weeks. If you decide you want to go mainstream -- totally your choice and less work for me but I just present all the options and you choose what works for you.

Cheryl
214-213-6340
myrealtorcheryl@gmail.com
0 votes Thank Flag Link Mon Apr 1, 2013
Dear Danny

We have a great loan officer in our office that can help you to improve and qualify for loan

our service is free for you , we get paid by seller


please contact me at

http://www.johnhamidi.kwrealty.com


or
469-252-4677

also we pay $1000 from our commission to help our buyer closing cast


Thanks
0 votes Thank Flag Link Mon Apr 1, 2013
In texas I can get you a pre approval without a 600 score call me to go over your situation...
0 votes Thank Flag Link Mon Apr 1, 2013
If you wife does not have income, you need to wait to get your score up.

Follow up with your Realtor and make sure you are working with a loan officer that is going to tell you what you need to do to get your score up, i.e. pay off debt and do not miss payments.
0 votes Thank Flag Link Mon Apr 1, 2013
You could even just use your wife as the borrower, using her credit score, but that might lower the amount you can qualify for, since the lender will only be using her income.

Please seek a good lender to guide you through this process, if you need suggestions for lenders I have a great list for the area.
0 votes Thank Flag Link Mon Apr 1, 2013
Danny,

My suggestion is to contact a lender and see whether your can qualify for a loan right now and if so how much. If you don't have a lender I can introduce you to some that I usually work with.

I'd be happy to represent you in purchasing your first home as most of my buyers are first time homebuyers. Also part of my service is to guide and educate you on the process of homebuying. Let me know when you are ready.

Take care,

Susie Kay, Realtor®
GRI, CHMS, SFR
Residential/Commercial/Investment
English-Indonesian-Hokkien
------------------------------------------------------------------
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240
469-371-2899
susie_k@att.net

http://www.dfwdreamhomes.net

Servicing your real estate need is my priority!
0 votes Thank Flag Link Mon Apr 1, 2013
It's possible for sure. Depending on credit accounts I have lenders that will approve you with under a 600
0 votes Thank Flag Link Mon Apr 1, 2013
Talk to a lender therefore you have all the particulars "lined up and ready to go" ... No Realtor will show homes UNLESS you are approved for a loan which governs how we can work with a client.

Frisco homes for sale Frisco Tx - website updated daily
http://www.lynn911.com/Web/AR287090/CustomContent/index/5057188

Lynn911 Dallas Realtor & Consultant
Multimillion Dollar Sales Producer
972-699-9111
http://www.lynn911.com 100's of Dallas homes listed for sale or lease

Follow me on Facebook
http://www.facebook.com/lynn911dallas
0 votes Thank Flag Link Mon Apr 1, 2013
I would recommend talking to a lender now so you can better understand how to proceed. I work with several industry-leading professionals that I can connect you with. I'd welcome the opportunity to help with your home search as well. Please feel free to call at 469-450-1326

Andrea Brooks
http://www.topagent.co
0 votes Thank Flag Link Mon Apr 1, 2013
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