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://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.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm
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.
Best of Luck!
Can I Buy A Home With Bad Credit?
No Score What Can I Do?
Click on the link below for further information
Keep in mind too that the lower your score the higher the interest rate you will be paying, so if you can improve your score it will help you in the long term.
If you need help finding a lender, just call or email one of us direct, we all have lists of lenders our clients have had success with to get you started.
It sounds like you are headed in the right direction.
Paying off debt and working towards your goal of home ownership.
There is a company here in Sacramento - Blue Water Credit - who can assist you
with restoring your credit. They are the only credit repair company in California that is rated by
the Better Business Bureau. Blue Water is trained specifically to partner with their clients
to get control of their credit scores. Many of my clients have gone through their program.
And....now they are buying their first homes too.
Please let me know if you would like Blue Water's contact information. I am happy to send to you.
Your loan options will increase when your credit score gets over a 620.....not as hard as it might seem.
Good luck to you!
Keller Williams Realty
CA DRE 01872795
1. Improve your credit score, and a mortgage broker can help you with that.
2. Get a bad credit mortgage
3. Not buy a home
Of those three things, you might think that a bad credit mortgage is the easiest, and it is, but it is also a costly option. However, for some borrowers, it's the best way to go.
#1 Short Sale Agent at Lyon Real Estate 2011
If you speak to a lender, you may find out that your score is too low, but you should also find out what to do to bring your score up. A great lender will help with suggestions to get you there. It's better to find that out now, rather than wait six months, and still possibly have some debt on your credit report holding you back.
By all means, speak to a lender!!! Great time to buy, and who knows, you might just qualify.
Call or write if other questions, or you need a referral.
Please dont get discouraged by answers you have heard. New programs come and go. DO NOT pay a company to fix your credit, it won't work. Lenders can tell you what YOU need to do. It's not that tough. Some cities like Roseville and West Sac have assistance programs.
Motivate yourself by looking at homes. Find a realtor that you enjoy and makes this stage fun.
Email anytime firstname.lastname@example.org
If you can wait, I'd advise you to cause you can get a better rate when you meet the standard bank credit requirements....
We do manual underwrites and don't base the approval off the computer and use common sense
Michael Diaz 380048
For those interested in applying for an FHA loan, applicants are now required to have a minimum FICO score of 580 to qualify for the low down payment advantage, which is currently at around 3.5 percent.
If your credit score is below 580, however, you aren't necessarily excluded from FHA loan eligibility. Applicants with lower credit scores will have to put down a 10 percent down payment if they want to qualify for a loan.
So if you're planning to buy a house, and your credit score doesn't meet the minimum, you should weigh the advantages and disadvantages of putting down a larger down payment or using those funds to try and improve your credit score first.
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