Credit Score in 31093>Question Details

Jade, Home Buyer in 31093

if i have a credit score of 504 what can i do to help my credit score to be able to get a first time buyers

Asked by Jade, 31093 Wed May 28, 2008

loan or a govt. loan anything to help me to get a starter home and help my credit?

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Answers

13
Niki Collier’s answer
BEST Advice: 640 or better is the general score required by lenders for MOST loan types. Some will agree to do the loan, but you will find, it will not be quick, they will need to get you to that score before actual loan approval.

Contact Fresh Start Consumer Services. This is service that I have referred many to with less than perfect credit files. No Gimmicks, actual facts and results. You could be at a 640 or better credit score, depending on the severeity in a few months. Results proven! 478-918-7692 for an appointment contact Christopher.

BUYING MADE EASY and affordable!!
There are sellers that have sales professionals like myself in the community daily and offer full in house services. Model visits, lender prequalification, attorneys and product information. Realtors are welcome, co-op fees paid by seller as well as closing costs. If you have a realtor great, if not, most open 7days a week and available on the web. Look for communites that offer 100% USDA financing if you want to avoid, paying out of pocket 3.5% FHA loans. Look on the USDA Map and type in the address and zip to see if the home is available in that area in any state! You can also contact the community or contact a realtor. Also check to see if your lender or the seller is contributing to closing costs. Other fees would be Earnest money deposits, Appraisial fees, that are solely your responsibility!
This way you know your expenses upfront and can plan for short or long term goals.

Starting any movement gets you there, YOU decide how fast!!
0 votes Thank Flag Link Mon May 20, 2013
Paying off your credit cards completely will help your debt to income ratio, but may not help your credit score as much as getting your balances less than 50% on all your credit cards. Get rid of the high interest ones first. Check your credit reports and see if there are any old, outdated, or incorrect information on your credit report and work on getting them updated. Having no credit can be worse than having bad credit. It is usually easier/faster to fix bad credit than to build credit. It is possible to buy a home with 500 credit score but it will take more money down and interest rate will probably be higher.
2 votes Thank Flag Link Thu Dec 25, 2008
If you are wanting to inprove your credit to purchase a home or just improve for future use a really good lender can sit down with you and make a plan for you. I work with a few lenders that willdo this as a courtesy with no charge to the customer. The best thing you can do is start paying your bills on time if you are behind on your bills you can call your creditors and ask them to forgive one month of payments they will add it to the final month. If you have any other questions or if you need help find a lender that will do this with you please feel free to contact me at terrijackson.realtor@gmail.com
1 vote Thank Flag Link Wed May 28, 2008
Everything my colleagues have said are accurate. Your not too far off, I can get you qualified for an FHA loan with a credit score as low as a 580. Dig deep and you will get there.
0 votes Thank Flag Link Fri Mar 1, 2013
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
0 votes Thank Flag Link Sun Apr 29, 2012
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
0 votes Thank Flag Link Sat Apr 28, 2012
hi jade,

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
0 votes Thank Flag Link Wed Apr 18, 2012
It is possible to do a lease purchase with a low credit score. You would lease for a few months while working on your credit score and getting approved. You would also have a closing date already set up in advance. Check out this link for information about doing a lease purchase http://www.trulia.com/voices/Home_Buying/removed-75328-- To maximize your 1st Time buyer benefits you would want to close on your home prior to June 30th 2009 - read my blog at http://activerain.com/blogsview/621702/Housing-and-Recovery-… for more info. Please contact me if you are interested in doing a lease purchase. Thanks
0 votes Thank Flag Link Thu Jan 1, 2009
I agree with Terry, a good lender can help you build your credit score up and advise you on which credit lines to keep open and which to close. If you need any recommendations for lenders in your area, feel free to give me a call or visit my website for valuable information and contacts.
Web Reference: http://www.CallBobAllen.com
0 votes Thank Flag Link Fri Nov 21, 2008
Jade,
I wholeheartedly agree with the answers you have received thus far, but remember once you pay down or pay off your credit cards, DO NOT close the accounts. A good idea would be to get your FICO scores from all three credit bureaus. You can do this on line a http://www.myficoscore.com/12. When you have done this and review your credit report there will be links for you to write dispute letters to each bureau. Check your credit report and make sure there are no errors, as errors as simple as balances, can bring your score down. Good luck in your quest of home ownership!
0 votes Thank Flag Link Mon Jun 9, 2008
Pretty simple really. Pay off any unsecured debt. Credit cards are hated by lenders who might be able to provide you with a mortgage. They all push unsecured debt, but on the other hand as soon as you have it they hate you. I have personally paid off credit cards one month and seen a spike of 100 points in my credit scores. If you cannot pay them off quickly, pay each card down to where your balances are below, say 50%, of the credit limit. Running up your credit cards to the credit line is a killer. Beyond this keep your oldest lines of credit or credit cards. Old credit is good.

There are countless other things, but paying down credit cards and time will heal all credit wounds.
0 votes Thank Flag Link Thu May 29, 2008
1st do not pay someone to fix your credit.. no matter how great it sounds. Credit is built of time and if you have reviewed your credit report and the information is correct then the only thing that will build your credit score is timly payments and time from the last missed payment. Lenders look at more then the credit score number they look at the credit history,income to debt ratio, employment history and other issues.
So as much as I would LOVE to help you find your first home today.. I think it may be a bit of time before we get to work together.
Eric Reid,
Managing Broker Renaissance Realty Group Inc.
Short Sale Certified
Graduate Harris Real Estate University
Office: 404-921-2067 x 102
Fax: 770-513-4443
Search All Georgia Homes for Sale at http://www.GeorgiaOnlineHomes.com
0 votes Thank Flag Link Wed May 28, 2008
Jade,

Your best bet to improve your credit, sadly, is not going to be buying a home. Without any detail about how your score got to where it's at, checkout bankrate.com's guide to improving your credit. Note, not one of the steps recommended is buying a home.

Good luck,

Jeffrey
0 votes Thank Flag Link Wed May 28, 2008
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