Credit Score in Chicago>Question Details

Kdmcder, Renter in Chicago, IL

Hello, I am looking into getting a home loan as the rent in Chicago is just crazy. credit score 630

Asked by Kdmcder, Chicago, IL Tue Aug 6, 2013

About my situatuion; my credit score is 630 and I have a 2 credit card charge off's that will fall off my credit report at the begining of 2016, the only credit card I currently have open is a target card with a $200 limit, I have about 50k in student loans and have not made a late payment on either the loans or the target card in 3 years. I actually pay about $50 extra a month on the student loans. I make around 40-45k per year ( one full time job at 36k and one part-time that yeilds about 5k plus tips) I have 6k saved up for the home buying process, I know not all of that will be downpayment as there will be fee's. Will I be able to get a loan for $150,000 or less?

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Answers

31
There are still some lenders that can do loans with scores down to 580 but they are not so easy to find. There is a great company, The Lenders Network - they specialize in difficult loans most lenders cannot do, low scores, self employed etc. they match you with lenders who can do the loan, good luck!
1 vote Thank Flag Link Mon Nov 11, 2013
Hello KD,

The three areas that a lender looks at qualifying a borrower are:

1. Credit score – minimum of 640 FICO is needed, although other compensating factors will allow for a 620 - the higher the score, the better rates you will get!

2. Loan to Value (LTV): 20% or more Down payment (80%LTV) for a primary property gets you the best rates and NO PMI! If you put less than 20% down payment on your purchase, you will have to pay mortgage insurance. The lower the credit score, the more money you will want to put down.

3. Debt to Income (DTI): lenders will lend up to 45% of monthly debt to monthly gross income.

The fulltime job and part-time jobs will need 1 month of paystubs and 2 years of W2's, and if you claim your tips, 2 years of tax returns.

I would be happy to review your options with you, please give me a call at 773.516.6859! You can go to my website and review different loan options and rates:
http://www.guaranteedrate.com/MaryKayLaurent


With warm regards,

Mary Kay Laurent
Associate Vice President of Mortgage Lending
marykay.laurent@guaranteedrate.com

http://www.guaranteedrate.com/MaryKayLaurent

o: 773.516.6859 - m: 312.403.4150 - f: 773.328.1740
1 vote Thank Flag Link Mon Sep 30, 2013
Mary Kay is very good! She will find the best program for you.
1 vote Thank Flag Link Tue Aug 6, 2013
Hello! With rental pricing what it is, Rent vs buying is a hot topic these days. There are some great programs available for you with low down payments.

Please give me a call and I will be happy to work with you to qualify you and find the best program available for you.

Mary Kay Laurent
Associate Vice President of Mortgage Lending
marykay.laurent@guaranteedrate.com

http://www.guaranteedrate.com/MaryKayLaurent

o: 773.516.6859 - m: 312.403.4150 - f: 773.516.6014
1 vote Thank Flag Link Tue Aug 6, 2013
There are lenders that will lend with a credit score as low as 580 - but you will get a much better deal if you can get your score up to a 640. This will save you on your interest rate as well as your out of pocket expenses. I recommend speaking with a lender who can help you improve your credit and walk you through the pre approval process.
I am happy to help
Sam Sharp
Senior VP of Mortgage Lending
Guaranteed Rate
773 290 0455
1 vote Thank Flag Link Tue Aug 6, 2013
630 is a workable score but those credit cards might cause an issue for you depending on how much of a balance you owe. A reputable mortgage loan officer can review your income documents and credit to give you a secure game plan that will put you in a home. Call me 815-474-4683 if you want to go over some options. Good Luck
0 votes Thank Flag Link Sat Jan 18, 2014
In your situation you're better off buying a home as appose to renting. Just like you mentioned, rents are insane. On top of that, you don't get any tangible benefit from renting as you do as a home buyer. Given your situation, please consult a few qualified loan officers and shop for the best interest rate. You will be surprised to find out about different options that you may have.
0 votes Thank Flag Link Mon Nov 11, 2013
HI there,

My name is Jimmy Vecellino and I am a Marine Corps Veteran and Mortgage Banker Specializing in VA Home Loans with PrimeLending.

I can tell you that most lenders require a 620 credit score on VA Home loans so to answer your question is it is possible to obtain a VA Home Loan with a 620 credit score.

Feel free to answer to check out my website at http://www.VALoansForVets.com or call me direct at 480-538-4980 for more answers to any questions that you may have.

Most of all thank you for your service to our great country.

With gratitude,
Jimmy Vercellino
0 votes Thank Flag Link Sat Nov 9, 2013
Buying is smarter then renting right now without a doubt. For mortgage help, call or email for a free pre-approval in less than 10 minutes. We lend our own money and are licensed in 49 states.

We can do: FHA, Conventional, USDA, VA, HARP, Interest Only, Home Equity, Fixed, and Variable. Find out which product is right for you by calling Brad at (855) 415-5626.

Brad Neumann
Sr. Loan Officer
Crosscountry Mortgage Inc.
Toll Free: (855) 415-5626 ext. 5734
Email: bneumann@myccmortgage.com
NMLS# 948036
0 votes Thank Flag Link Sat Nov 9, 2013
You should be able to get qualified. Speak with a loan officer and shop around for the best interest rate.
0 votes Thank Flag Link Thu Nov 7, 2013
I would be happy to help with your financing. In Illinois there are several programs for first time home buyers that offer down payment assistance. Joanna Weiss NLMS 230092 773-327-3580
0 votes Thank Flag Link Mon Aug 26, 2013
I will talk with a good lender , good luck
0 votes Thank Flag Link Sat Aug 24, 2013
email me at jmichaels@remax.net and I will send you my list
0 votes Thank Flag Link Mon Aug 19, 2013
you are good to go, in fact yo are high enough to go Conventional or FHA, happy house shopping.

Riccardo Wardlow
Owner
Quality Mortgage Lending
630-670-8266

RATED A+ WITH THE BBB

*We do Conventional loans down to a 620 score
*We do FHA loans down to a 580 score
*We do USDA loans down to a 620 score (no money down)
*We do $100 down payment FHA program
*Unlimited Loan To Value refinances on Fannie/Freddie refinances (only on loans originated before May 31st 2009
*We do VA loans down to a 620 score
*We give free counseling on what needs to be done to improve your credit score.
*We do 203k loans down to a 620 score
*We do reverse mortgages
*We do JUMBO loans to 12 million
*We do Itin loans
0 votes Thank Flag Link Mon Aug 19, 2013
Sounds like your in great shape to get approved for a loan now, 150k should work for you. If you need any help email me or visit our site http://www.thelendersnetwork.com
0 votes Thank Flag Link Sun Aug 18, 2013
There are several loan programs that you can choose from. It is best to work with a professional so you can have your best choice. Check each loan requirements to know if you qualify for such.



Check if you qualify for a mortgage. Try http://www.whywaitbuytoday.com
0 votes Thank Flag Link Sun Aug 18, 2013
you definitely can i would recommend not going with the first person you speak with just because yo can probably get a better deal if you shop around and compare.


Riccardo Wardlow
Owner
Quality Mortgage Lending
630-670-8266

RATED A+ WITH THE BBB

*We do Conventional loans down to a 620 score
*We do FHA loans down to a 580 score
*We do USDA loans down to a 620 score (no money down)
*We do $100 down payment FHA program
*Unlimited Loan To Value refinances on Fannie/Freddie refinances (only on loans originated before May 31st 2009
*We do VA loans down to a 620 score
*We give free counseling on what needs to be done to improve your credit score.
*We do 203k loans down to a 620 score
*We do reverse mortgages
*We do JUMBO loans to 12 million
*We do Itin loans
0 votes Thank Flag Link Thu Aug 8, 2013
Kdmcder,
Contact some local lender professionals to find out for sure. Some lenders have the ability to find you financing with low credit score.
0 votes Thank Flag Link Wed Aug 7, 2013
Work with a Lender and plan on discussing your credit, income, and down payment. A plan will be put into place to put you in a position to purchase. Should you need any assistance, feel free to contact me.

Bill J Deligiannis
First Centennial Morgage
B.Deligiannis@GoFCM.com
Web Reference: http://www.BJDLOANS.com
0 votes Thank Flag Link Wed Aug 7, 2013
Dear Home Buyer,

Work with Sam Sharp. He is excellent and he will work with you every step of the way. I know he also works with a company that could help you get you score to a 640 or maybe higher.

Best of Luck,
0 votes Thank Flag Link Wed Aug 7, 2013
Definitely contact a lender, start with Sam Sharpe, he responded to your inquiry here, or, call Kelly Price, Wintrust Mortgage 773-501-6653, kprice@wintrustmortgage.com, let her know I referred you.

Good luck!
0 votes Thank Flag Link Wed Aug 7, 2013
We work with several lenders to provide you options, which means more options for you all under one roof. Our lenders can go down to 620 min fico & in regards to down payment we could help you find a program with the least down payment to secure a mortgage. Call me to discuss in details.

847-278-7222
0 votes Thank Flag Link Wed Aug 7, 2013
send me an email to jmichaels@email.com and I will send you a lender contact
0 votes Thank Flag Link Tue Aug 6, 2013
Best bet is to call a lender. They can walk you through the process and tell you what you can and cannot afford.
0 votes Thank Flag Link Tue Aug 6, 2013
Try calling Ryan Mecum at Wintrust Mortgage. If anyone can help you he can. His number is (312) 933-9778. Then feel free to contact me to help you find a place!
Web Reference: http://Www.markmalave.com
0 votes Thank Flag Link Tue Aug 6, 2013
Very close to the 640 score. Call Sam Sharp and ask him to look at your credit report. Perhaps there is an opportunity for you to raise your score.
0 votes Thank Flag Link Tue Aug 6, 2013
Call Bernard Dugandzik with Key Mortgage at 847 508 0190 as he is a mortgage officer that can help you.
0 votes Thank Flag Link Tue Aug 6, 2013
Hi Kdmcder,

A great option is the IHDA program. This program will allow fico scores as low as 620. Please give me a call, and I can explain further.

IHDA.org

Josh Marks
Direct:773.303.0033
Jmarks@wintrustmortgage.com
JoshMarksMortgage.com
0 votes Thank Flag Link Tue Aug 6, 2013
I would speak with a knowledge lender to find out your options.
0 votes Thank Flag Link Tue Aug 6, 2013
FHA will likely be your best option for getting a mortgage. FHA permits as low as a 3.5% down payment, which seems to be where you are at. You would need to get the seller to agree to pay closing costs or get a gift from a family member to cover closing costs, otherwise you'll need to save more money for that. Your credit score is on the lower end of what most banks will accept.

It's going to be tough to give you a firm answer without actually pulling your credit report and running it through FHA's underwriting system for approval.

The biggest concern I have besides the credit is going to be your income and debts. Part time income can only be considered if you have been in that job uniterrrupted for at least the last 2 years, and tip income can only be considered if it's declared fully on your taxes.

If we're not able to use the part time income to qualify then it is going to be difficult to get you approved.

Your best bet is to give a call in and we can gather all the pertinent information, have you provide documentation (pay stubs, w-2's, tax returns) and make a full determination. Anything other than that would be pure speculation.

Feel free to give me a call and we can discuss things in further detail.

Tony Grech

Loan Officer -NMLS #977416

WCS Lending, LLC
Tony.Grech@WCSLending.com
Phone: 866.936.5363 ext. 278
0 votes Thank Flag Link Tue Aug 6, 2013
Hello:

I am a local mortgage broker and would be happy to help you get pre-qualified. We work with over 30 lenders to help you get the best possible financing. We specialize in FHA, VA, 203k renovation loans and Reverse Mortgages for refinance and purchase too! Were other banks require a 640 and above score to help with financing, our lenders will go as low as a 580 score on an FHA mortgage. SMC carries an A+ Better Business Bureau Rating and we have worked in the community for over 15 years!

Please call or email me so we can set aside some time to get you prequalified; or visit my website to complete the application http://www.smartmortgageinc.com.

I look forward to working with you!

Best regards,

Patty Harrison
Smart Mortgage Centers
630-788-6200 cell
patty@smartmtgs.net / http://www.smartmortgageinc.com
0 votes Thank Flag Link Tue Aug 6, 2013
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