Financing in Philadelphia>Question Details

tlmclaurin94…, Renter in Philadelphia, PA

I am looking for a house in the range of 90,000. My credit score is 563. Can I get approved with a fixed rate?

Asked by tlmclaurin9483, Philadelphia, PA Thu May 30, 2013

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8
Good afternoon timclaurin9483,

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://www.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.consumer.ftc.gov/articles/0058-credit-repair-how-…

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

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes Thank Flag Link Tue Jun 4, 2013
Hello, have a loan officer give you a copy of your report, get feedback on what to do to improve it, get a quality credit repair guy involved if needed. If you are motivated to buy you should be able to improve your credit. PHFA allows for a 580-600 score with compensating factors. If your income/debt ratio is "ok" and you have money saved you may be able to improve your score within a month or two if you are lucky.
Always feel free to call or email.
Chad
Chad E. Bahnsen- Mortgage Originator, NMLS# 127719
Mortgage Network, Inc.- Corporate NMLS# 2668
14 E. Stratford Ave Ste 3C
Lansdowne, PA 19050
Cell: 610-457-7262
Office: 610 622-2212
Fax: 1-866-590-3806
E-mail: cbahnsen@mortgagenetwork.com
http://www.chadthemortgageman.com
Licensed by the Pennsylvania Department of Banking and Securities
0 votes Thank Flag Link Tue Jun 4, 2013
Hello Tim, your getting real close to a 620 score who is helping you update your ficos?

All the best John Curci EXPO 215-969-3200
0 votes Thank Flag Link Sat Jun 1, 2013
Unfortunately your credit score is the problem. I would start by working on your credit and getting it to a rate acceptable to a mortgage lender. Your best bet is start with a local mortgage company and see if they work with a credit repair company. Some lenders will also help you and put you on the right track to getting your credit score up.

If you are persistent and truly want to get the score up you may be able to buy in as little as a six month period.

Good Luck
0 votes Thank Flag Link Fri May 31, 2013
Getting a fixed of adjustable rate isn't the issue, it's getting approved. 580 is the lowest score I've heard of any lenders considering, and that is no guarantee, just a possibility.
You may want to start by working on your credit first. Some lenders work with legitimate credit repair companies, see what yours can do or ask around. With a better score you'll not only have a chance to be approved, but get better rates and programs available.
0 votes Thank Flag Link Thu May 30, 2013
At t this point no. However I work in the Philadelphia market and can help you get your credit score raised to a 640 in order to get approved. Feel free to email me directly at quonlove@msn.com
0 votes Thank Flag Link Thu May 30, 2013
Brian speaks the truth. Let me know if you want to talk to a local agent that can send you listings with exactly what your looking for. Feel free to email me and I will send you my loan officers information and we can go from there. There is no fee for using me and my professional real estate services.

Jon Unrath
Weichert Realtors Media
JUnrath12@comcast.net
267 968 1505
0 votes Thank Flag Link Thu May 30, 2013
I believe you can but you'll have to consult a loan officer. I know that FHA loans, which can be fixed rate, have a cut-off credit score of about 610 but depending on your total profile you may be able to qualify. For example, if you can put more than 20% down on a loan or if you have someone with a higher credit score cosign a loan. There are many variables. I would call and talk to a mortgage loan officer to understand your options.
0 votes Thank Flag Link Thu May 30, 2013
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