Credit Score in Pittsburgh>Question Details

cvking24, Home Buyer in Avalon, PA

My fiance's score is 598 and mine is 543 are they too low to purchase a home?

Asked by cvking24, Avalon, PA Wed Apr 18, 2012

Help the community by answering this question:

Answers

12
No with a 598 your fiance is good.. 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 like The Lenders Network. They have helped a lot of people with lower scores get approved for home loans..
5 votes Thank Flag Link Thu Nov 28, 2013
Thank you Jessica!!
Flag Sun May 4, 2014
Good afternoon cvking,

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://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.


Trevor Curran
NMLS #40140
2 votes Thank Flag Link Wed Apr 18, 2012
Possibly, but you need to discuss that with a licensed mortgage broker. Best of luck to you.
1 vote Thank Flag Link Sat Sep 13, 2014
It seems that your husband's scores can work, but now yours. 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
1 vote Thank Flag Link Tue May 13, 2014
How is it going with your credit improvement program. I am happy to help you with getting to where you need to be. Getting a 598 to over 620 this year should not be a hard task. I work in Alleghany and Washington counties, if you want some local assistance. Best of luck.
Benny Smith
1 vote Thank Flag Link Tue Dec 31, 2013
cvking,

While I agree with most of the responses below, having a mortgage and paying it on time will significantly help your credit. Different types of credit are good to have. There are some lenders that will go below 600 middle score. If either of you are veterans, a VA loan will go down to 580. Whether this is a good time for you to purchase is going to be up to you. As with ANY loan you do, you want to make sure you know all the terms and conditions before you sign anything.

Can I ask why your credit is a little lower? Do you know why?

Brian Keenan
#938075
1 vote Thank Flag Link Wed Dec 4, 2013
Those scores are quite low but they won't deny you of getting a home or a loan. You can still get it, just not in the best payment terms and rates.

I have read that "To be exact, there is at least a 4% discrepancy between the interest rates given to individuals with a credit score of 760 and 580" here http://www.myfreecreditreportx.com/required-minimum-credit-s…
1 vote Thank Flag Link Fri Nov 29, 2013
I gave Trevor a thumbs up because he is right on the mark here. You are where you are, and now is not the time for your to buy, at least not yet. Don't get hung up with what has happened and why. Many people have been effected badly in the last few years. If you are not comfortable going to a credit specialist, I often recommend my future clients who are not ready but want to get there, to sign up with equifax.com for monitoring your score and progress. You can print out your reports and make sure it is correct. Also there is a tool that lets you do, what if examples, based on your score so you know how paying an extra on one account could be better than another. I have seen people go from the low 500 too over 620 in a few months buy doing these two things. I have not seen any positive results from those who have used the free services we all see on Thank you for your question and My Best on your goal of becoming a homeowner. Make the right moves now and you will be there.

If you have any other questions I am happy to email you back here or at benny@buyahomenow.com
1 vote Thank Flag Link Wed Apr 18, 2012
The credit score should be in the 620 to 660 range. You might still be able to get higher-rate financing, or you might find a seller willing to take back financing or do rent-with-option-to-purchase. A reputable, non-profit, credit-counseling program, such as Advantage Consumer Credit Counseling Service, can help you bring the score back up. See their website at:http://www.advantageccs.org. The best homes to try to get seller financing or rent-with-option-to-purchase are homes that have been on the market for a while or that are being sold without an agent or an estate.
1 vote Thank Flag Link Wed Apr 18, 2012
It's good to read this advice. I'm employed full-time but also have a credit score in the mid-high 500 range. I'd read that FHA loans were available for any first-time buyers with scores above 500 provided the buyer could cough up a 10% down payment. That's actually a possibility for me given the low cost of the homes I'm looking at, but so far I haven't found any local lenders willing to assume that level of risk. We're currently getting gouged by our rental, so even less-than-favorable terms would be a big improvement. Can recommend a reputable local lender who works with FHA that accepts scores below 620?
0 votes Thank Flag Link Fri Nov 29, 2013
Credit is not the only criteria to obtaining a mortgage Based only on the information you give (your credit scores) FHA may be a possibility but it depends on the amount you have for a down payment. Some lenders may approve an FHA loan with a larger (then the minimum of 3.5%) down payment. Please contact a good mortgage lender who offers FHA mortgage financing and discuss your complete situation with them and see if they can pre-approve you for an FHA loan based on all of the required qualifications.
Good luck.
0 votes Thank Flag Link Wed Apr 18, 2012
The 598 will still qualify for some lenders the 543 will not. Your rates will be higher and your required down payment will also usually be higher than standard 3.5-5 % FHA or minimum conventional. I am happy to help. 412 576 5561. Doug Caye
0 votes Thank Flag Link Wed Apr 18, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer