Chelsea, Renter in Westside Connection,...

Are there any options for purchasing a home with a credit score of 580 and 5-7k down?

Asked by Chelsea, Westside Connection, Grand Rapids, MI Wed Oct 5, 2011

Help the community by answering this question:

Answers

13
Annette Levinson’s answer
Chelsea, you should first fix your credit before looking to purchase a home. I don't know where you are looking to purchase so I don't know if 5-7K is enough for a downpayment and closing costs. Go to your local nonprofit housing group for credit counseling. The credit counselor will go over your credit report with you and advise where you have made mistakes and how to fix them.
1 vote Thank Flag Link Wed Oct 5, 2011
Please call me at 616 308 2631. I have a mortgage person who probably can help you!!

Thanks

Karl
0 votes Thank Flag Link Thu Jan 5, 2012
Shane,

I don't think that is true about no score for VA. I'm suffering from past credit problems. Over 15 months of good repayment and still can get a loan. How do I go about finding a lender to handle my special circumstances.
0 votes Thank Flag Link Wed Jan 4, 2012
The only option is to buy on a land contract because banks will not touch anyone with a score like that to buy a home. I you would like help let me know.

Steve Dykstra
0 votes Thank Flag Link Wed Jan 4, 2012
My mortgage man should be able to help you!!!

Please call me at 616 308 2631, or email me at kroelofs@grar.com.

I cannot help you until you contact me!!

Thanks

Karl Roelofs Coldwell Banker AJS Schmidt
0 votes Thank Flag Link Tue Oct 11, 2011
Chelsea,
First fix your credit. And save as much as you can. Once your credit is in the high 600's go talk to lenders. OR if you are really wanting to buy now, look for a seller that might accept a land contract offer from you.
0 votes Thank Flag Link Fri Oct 7, 2011
The mortgage man in my office should be able to help you!!

Please call me at 616 308 2631, or email me at kroelofs@grar.com.

I can only help you if you contact me!!

Thanks!!

Karl Roelofs Coldwell Banker AJS Schmidt
0 votes Thank Flag Link Thu Oct 6, 2011
Chelsea - the basic gamut of loan programs are:

Conforming (Fannie Mae/Freddie Mac) - require a 620 score and rates are relatively high with a score under 660

VA - no score requirement per VA, must be a Veteran, most lenders are looking for a 620 score anyway

USDA - no score requirement per USDA, must purchase in a rural area/town & not make too much money, a little west of Wilson Ave would be eligible, but lenders are looking for a 620 or 640 score, but if your income is low enough you can go direct to USDA and they have no score requirement, link for info is in the web reference

FHA - requires a 500 score, less than a 580 requires 10% down, most lenders are still requiring a 620 score. There are lenders who will go down to a 580 or even a 500, with less than a 620 the interest rates are a bit higher relatively, but still makes them low historically.

What is on your credit is equally as important as your score itself. All above loan programs are looking for you to have 12 months of re-established paid-on-time credit after delinquent credit (which a 580 score usually indicates has happened), so if you haven't had that happen yet I'd recommend you make that part of your plan.
0 votes Thank Flag Link Thu Oct 6, 2011
Hi Chelsea, Rose Land Company will work with any credit as long as you have income and 10% down. Visit their website at http://www.roselandco.com for available listings. Good luck!
0 votes Thank Flag Link Wed Oct 5, 2011
Yes Chelsea, there are ways to buy a home now while you work on improving your credit score. You can currently buy on lease option or land contract. There are many reputable investors, like myself, who help people just like yourself realize the American dream of owning a home. I can help you find the home of your dream and provide credit repair for you so that you will be able to get a mortgage in the near future to complete the sale. Give me a call at 248-930-0198 and let's talk.
Web Reference: http://kaperproperties.com/
0 votes Thank Flag Link Wed Oct 5, 2011
Consult with a few lenders, and check your credit report and fix the issue that is lowering your score, there may be unknown issues that can help you raise the score that can be a quick-fix. Like Lloyd said, most lenders want you to be at least in the low 600's to facilitate a reasonable down payment. Don't forget to have your agent try to get a seller contribution for closing costs/rate buy down when you are able to buy.
0 votes Thank Flag Link Wed Oct 5, 2011
If you would like to speak with a lender, I can recommend a few that might be able to help you out. Let me know if you would like a few names and contact information.
0 votes Thank Flag Link Wed Oct 5, 2011
Chelsea, there are options out there for you. Many lenders have minimum scores for FHA mortgages of 620 but others go as low as 550 or less depending on your circumstances. I would encourage you to speak with a couple lenders, one of which I know does these types of loans. If you would like the contact information feel free to call me at 616-889-7662 or email me at LloydReed@grar.com.
Web Reference: http://www.HomeRunGR.com
0 votes Thank Flag Link Wed Oct 5, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer