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.
Your best bet is to call a mortgage lender and get pre-qualified for a loan. Based on your income, work history and credit history, the lender will tell you if you can be approved, and for what amount, rate, terms, etc.. If not approved at this time, the loan officer should be able to review your information and help you develop a strategy and plan of action to get you in a position to be approved as soon as possible.
I would suggest you contact Ed Dubinsky at Absolute Home Loans 215-808-5353.
Good luck with everything. Once you are approved and looking for a professional Realtor, please feel free to call me. I'd be happy to assist you in finding a great house and negotiating a good deal for you. In the meantime, if you have any other real estate related questions, please feel free to call me directly. Have a great day.
All the best,
REALTOR, Property Manager
YOur Real Estate Resource For Life
Best of Luck!
I have a colleague who helps individuals bring their score up to a point where you can qualify for a mortgage.
Right now you are not in a score area where a mortgage is a viable option. You also want your score to be as high as possible so that your interest rate is lower and will then lower your monthly payment.
I will be happy to let you know who to contact if you email me.
Ana Barlow, Coldwell Banker Preferred, Philadelphia
You should certainly be able to get a PHFA mortgage. They are not credit score driven and will look at things case by case.
If you need further information, just let me know.
Carol Cei, Realtor, ePRO
ReMax Platinum Club
Five Star Professional
ReMax Action Realty
There is a lot more information that is needed to qualify you for a mortgage. and I suggest that you talk to a mortgage lender that does sub 600 credit scores.
I do credit scores down to 560 but that depends on other factors. Give me a call and we call discuss it.
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010
NMLS ID 143960