Credit Score in Philadelphia>Question Details

Serinah Burns, Renter in Philadelphia, PA

what kind of mortgage could i get with a credit score ranging from 565-605?

Asked by Serinah Burns, Philadelphia, PA Tue Mar 20, 2012

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Trevor Curran’s answer
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 Mon Apr 16, 2012
FHA really isn't credit score driven, it's the Banks and Lenders that set those score requirements. There are a few lenders that go down to 580 with FHA, I personally have closed on several homes with clients around and under 600. I recommend all my clients that have credit issues to check with The Lenders Network, check them out. If anyone can get you approved they can!
1 vote Thank Flag Link Tue Jul 16, 2013
Hi Serinah,

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,
Larry Lichtman
REALTOR, Property Manager
YOur Real Estate Resource For Life
(267) 254-7994
1 vote Thank Flag Link Wed Mar 21, 2012
If it were me I would not allow a lender to put me further in debt if I was already struggling to make my payments. The underwriting guidelines are actually liberal, if you do not qualify they are protecting you by saying no. I hope my comments keep you from getting in over your head, good luck,
0 votes Thank Flag Link Wed Mar 21, 2012
Your best option would be a FHA 203b. You can find lenders that can go down to 560 with 3.5% down but you would be better off working on your credit for 30 days and bring up your scores. Click on the link and read about the different ways in order to better your score.


Best of Luck!

http://www.trulia.com/blog/george_raymondo/2011/11/can_i_buy…

http://www.trulia.com/blog/george_raymondo/2012/03/no_credit…
Web Reference: http://www.AFN-Loans.com
0 votes Thank Flag Link Tue Mar 20, 2012
Hi

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
anabarlow@gmail.com
0 votes Thank Flag Link Tue Mar 20, 2012
Hello,

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
215.643.9661
carolcei@remax.net
0 votes Thank Flag Link Tue Mar 20, 2012
Hello Serina,

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.

Regards,
Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010
NMLS ID 143960
0 votes Thank Flag Link Tue Mar 20, 2012
Right now, none.

Credit score requirements are tightening.

I suggest that you work at clearing up your credit and then look for a home.

Good luck,

Fred
0 votes Thank Flag Link Tue Mar 20, 2012
One that you will love and care for for many years. Banks will be lowering requirements for home loan qualifications in the near future, save some money and get ready to start house hunting with your favorite local Realtor.

Good luck

Freddy Solis
http://www.freddysolis.com
0 votes Thank Flag Link Tue Mar 20, 2012
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