Have a wonderful weekend.
CEO & SR Credit Repair Specialist at
Everlasting Credit Repair
Ex-Mortgage Banker of more than 10 years.
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.
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.
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker â€“ NYS Dept. of Financial Services
Based on what you are telling us and the majority of loan programs out there, no. What you can do is take some time to address the reasons your scores are so low. Credit repair can legitimately be done by the borrower, but it takes some time and effort. If you have a copy of your credit report you can dispute in writing any errors that may be on it. When you do, provide proof that the bill is paid or was not late or is not yours.
Pay your existing balances down to 1/3 of their limits or less. DO NOT CLOSE ANY ACCOUNTS; this is a common mistake that hurts scores, not helps.
Pay your bills on time and set aside a good savings every month. You'll need down payment and closing costs when you buy. Set up a budget and live with it, if you use any new credit pay it off every month. Don't give in to impulse purchases and set aside money for car repairs and other surprises that are inevitable.
Once your scores in both in the 600's you'll have options to consider and be well on your way.
Best of luck.