Credit Score in Whittier>Question Details

JBARRETT1469, Home Buyer in Gilford, NH

IS IT AT ALL POSSIBLE TO BUY A HOME WITH A CREDIT SCORE BETWEEN 585-620?

Asked by JBARRETT1469, Gilford, NH Fri Nov 30, 2012

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7
Cindy Davis’ answer
I'm sure you can find a lender who says you may be able to...

I always wonder however about the wisdom of buying when your credit is so low. Low credit scores often reflect large credit card balances, missed payments, and some back log of people you owe money to. So, to add another debtor to your life makes little financial sense to me.

I would encourage you to work with a reputable lender in your community, review your credit thoroughly and see what you can do to bring it up - if necessary, paying off some debts first. Your interest rate will be affected by your credit score so the higher your scores, the lower your interest rate.

Best of luck.
1 vote Thank Flag Link Fri Nov 30, 2012
great answer! Thumbs up!
Flag Fri Nov 30, 2012
It is possible with FHA and worth looking into the CHF ACCESS program as well
http://www.chfloan.org/Programs/ACCESS/CHF_ACCESS.html
0 votes Thank Flag Link Wed Jan 30, 2013
Hello JBARRETT1469, Yes absolutely you may qualify today with that fico score for an FHA purchase owner occupied with as low as half percent down payment program. The United States of America has insured government FHA programs to assist home buyers with fico scores as low as 500-579 with 10% down as well as if you have a minimum 580 fico score, you may qualify for FHA financing 3.5% down. There is also an FHA CHF Access half percent down payment program available as down payment and/or closing cost assistance with 30 year FHA fixed rates below 4%.

The majority of Lenders/Banks want the cream of the crop with lots of money for down payments and high fico scores above 640 and look down on folks with lower fico scores but those circumstances are only THEIR OWN COMPANY OVERLAYS and not the government insured FHA guidelines that I and few Lenders work with. The Lenders/Banks that sell to Fannie and Freddie are the ones that require the minimum 640 fico as those entities will not buy loans with lower than 640 fico scores on the secondary market. Ginnie Mae issuer Banks are the ones you will qualify for with those fico scores.

I would not reccomend paying anything off as this alone can directly LOWER your fico scores further. You need to speak with a professional that can advise you as to what measures to take for the best outcome to RAISE fico scores or qualify.

Here are links to study and consider that you MAY QUALIFY FOR AT THIS TIME WITH YOUR CURRENT FICO SCORES. It only takes a few dozen questions to qualify in minutes for the loan program to benefit you the best financially.

http://www.under640ficoscoreloans.com/Pages/Conventional.aspx

http://www.under640ficoscoreloans.com/Pages/FHA.aspx

http://www.under640ficoscoreloans.com/Pages/NoFicoScore.aspx

http://www.under640ficoscoreloans.com/Pages/HalfPercentDown.aspx

http://www.under640ficoscoreloans.com/Pages/ContactSheryl.aspx
Sheryl Arndt, Real Estate Broker – Sr. Loan Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
20+ Years Experience
DRE# 01140252
NMLS# 297251
760-486-4225
0 votes Thank Flag Link Thu Dec 27, 2012
Whether it's possible or not, I do not recommend buying a home with your credit score. I agree with Trevor's comment below - beware of any hot shot mortgage professional promising to get you a loan.

With your credit score you probably have credit card balances and perhaps unpaid balances that have gone to collection. PAY THESE OFF before attempting to buy a house.

Banks, perhaps understandably, want to deal with credit worthy borrowers...show them you are that person by paying your debts off, or at least down. You will not be able to take advantage of the lowest mortgage rates with your credit score being where it is.

Best of luck.
0 votes Thank Flag Link Thu Dec 27, 2012
Good morning,

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 are one of the folks affected by this terrible economy, you have a low credit score and 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.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528
0 votes Thank Flag Link Thu Dec 27, 2012
Yes, you may qualify for CHF Access half percent down payment program with a minimum 580 fico score and which can also contribute towards your closing costs as well. I specialize in Under 640 Fico Score Loans and offer credit repair at no cost to raise fico scores to qualify. Do you have down payment and closing costs? If not, this program will assist you where you can buy with minimum out of pocket expenses. I can email you listings as well.

It only takes a few dozen questions to qualify you in minutes. Here are some links to study.

http://www.under640ficoscoreloans.com/Pages/Conventional.aspx

http://www.under640ficoscoreloans.com/Pages/HalfPercentDown.aspx

http://www.under640ficoscoreloans.com/Pages/ContactSheryl.aspx
Sheryl Arndt, Real Estate Broker – Sr. Loan Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
20+ Years Experience
DRE# 01140252
NMLS# 297251
760-486-4225
0 votes Thank Flag Link Thu Dec 20, 2012
Yes! you can buy a home with a down payment as low as 3.5% and a credit score as low as 580. Please contact me for further questions.


Ana Benavides, Mortgage Advisor
abenavides@firstcal.net
Cell: 562.205.7119
Fax: 866.557.7091
NMLS# 453575
0 votes Thank Flag Link Fri Nov 30, 2012
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