Financing in Bronx>Question Details

Zinnia1123, Home Buyer in

I currently have a 578fico looking to buy a home in pennsylvania in the future. Is there help with homebuyer grants and can I also qualify for a FHA?

Asked by Zinnia1123, Wed Dec 14, 2011

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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
I agree with Annette that your first call to action should be contacting your local HUD sponsored housing counseling non-profit. They have first time home buyer classes and financial fitness education that will help you understand the steps you can take to improve your credit. They have a one time nominal fee for all their services and they have nothing but your best intentions in mind. Best of luck to you!
0 votes Thank Flag Link Tue Jan 3, 2012
Homebuyer,

Work on your credit, get those credit scores up soem lenders require a credit score of 640. Also consult with a lender that has much experience and they can guide you through the process!

You will them qualify for a FHA Loan.

Best of Luck!

Millie Valentin
RE/MAX Voyage
1930 Williamsbridge Road, 2nd Flr
Bronx, NY 10461
CERTIFIED BUYERS AGENT
0 votes Thank Flag Link Mon Jan 2, 2012
You will need to increase your credit score to qualify for FHA financing. That would be your first step to homeownership!

Valerie Reyes
Exit Realty Search
http://www.thebronxmls.com
718-510-3012
Web Reference: http://ww.thebronxmls.com
0 votes Thank Flag Link Fri Dec 16, 2011
Officially yes but every lender has overlay for a higher FICO. Go to your Neighborhood Housing Services for credit counseling. The counselor will go over your credit report with you. They will tell you what you have done wrong and what to do to fix it.
Currently there are no grant money available. Perhaps some would be available after you credit improves.
0 votes Thank Flag Link Thu Dec 15, 2011
You do need to raise your scores. Find a lender and ask them what you need to do to increase your score. A lot of time lenders have someone they work with who will tell you precisely what to do. Good luck
0 votes Thank Flag Link Wed Dec 14, 2011
Sorry, no. You have to work on your credit.

Save up and make sure that you will be a responsible homeowner in the future.

Best of luck,

Fred
Web Reference: http://fredglick.com
0 votes Thank Flag Link Wed Dec 14, 2011
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