And another cautionary tale from the world of finance in south Lousiana...don't take advice, especially financial advice from a person in a state where they rank in the highest foreclosure rates in the country..

Rules, means and methods to get financing will vary with the state. If, (and it is VERY doubtful) you were able to get a loan with a credit score of below 620 you will pay..you will pay with at least 1.5 points, (1.5% of the loan), high interest rates(the worse the credit the higher the rate) and basically put yourself in a position where the mortgage broker makes the money, and you will be stuck with payments you cannot afford today, tommorrow or the second you lose your job.

There is no "quick fix" to getting your financial life in order. Long term it is better to have a couple dollars in your pocket, get your credit above 610 and then you can negotiate from a position of strength when it comes time to get a loan and negotiate with a seller.

To keep this in perspective, several of us (agents/brokers) have clients with 750 to 800 credit scores and these people are still being strangled in paperwork in order to buy a property..and this has become the norm.

Ian is wrong, many lenders can do FHA loans with under 620 scores - including my company, this is why I dislike when agents try and answer financing related questions, its very dynamic out there and unless you are dealing on the financing end every day you are out of the loop.

There are also MANY ways to quickly boost your credit scores 10-30+ points, depends on the credit so dont let this hold you back.

Tyrone,

Most of the info below is sound with a few exceptions. First, you can in fact get a mortgage with a 610 credit score, technically the FHA does not have a minimum score but you may end up paying more for the rate than if you were a 620. Second, do not close out your credit cards. You can pay them to zero balances, but closing old accounts will actually lower your scores since the bureaus increase scores for established trade lines. Third, freecreditreport.com is not free, I think Ian meant annualcreditreport.com. That site is hosted by the three credit bureaus and once a year you can pull your scores for free.

Aside from those issues I'd agree that waiting until your scores are over 620 is a good idea. If you have the financial means to do so, paying your credit balances to 30% or below of your limit will yield a great jump in your scores.

One last question- do you currently hold a mortgage? If so you may qualify for a Streamline or Refi PLUS loan. Ask your lender about these. If you don't have a mortgage make sure you deal with a few lenders to make sure you're getting a fair rate. Good luck to you.

Kind regards,

Jason Diperstein
E Mortgage Management
800-793-9633 ext. 156
jdiperstein@emmloans.com

You need at least 620 to start talking to people...and you are awfully close. Get with a mortgage person at a local bank to help you understand what it takes to improve your credit...for starters:
1) Get rid of your credit cards until you have just one
2) If you cannot get rid of the credit cards, get rid of all you can...take whatever monies you have and get rid of that debt.
3) Do you have a high car payment? Get rid of the fancy car and associated payments and downsize
4) Start saving...it is a delicate balancing act between paying off bills and saving...but do regular little bitty amounts...give up the poboy for lunch,(for me shrimp and oyster dressed..and THAT's hard to give up!) and put that money in savings.
5) Write down EVERY PENNY you spend for 3 MONTHS...you will be surprised how many quarters you can save over 90 days.
6) Check you credit score...get a free one from freecreditreport.com and make sure everything on there is correct.
7) Do not take out any loans at all
8) Do not move..unless it is to pay less for rent.
...if you have made it through all these, your next question on here 90 days from now will be, "Who is giving the best rates on FHA or VA loans for people with a 620 or better credit score?"
Good luck!