Financing in Canton>Question Details

Tbryan23, Home Buyer in Acworth, GA

I have a credit score of about 620, and make about $35,000/year. Do I have a realistic chance of getting approved for a mortgage?

Asked by Tbryan23, Acworth, GA Mon Oct 1, 2012

My credit is improving, since I am now out of college and have had a good job for a little over 2 years. All of my credit is paid off. I have student loan debt of about $28k, and I have a car loan with about $16k left on it. I have a credit card, but I don't usually carry a balance on it.

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There are a select few lenders willing to go down to a 600 score sometimes lower. I would recommend The Lenders Network they have helped several of my clients with lower scores get approved.

Good luck!
3 votes Thank Flag Link Wed Aug 21, 2013
For an FHA mortgage, most lenders require a 640+ credit score for the last 2-3 years now. Prospect Mortgage is one of the few direct lenders to offer an FHA 580-639 FICO loan program. Credit profile is a major factor in a mortgage approval. Generally, there should be no late payments, new collections accounts/charge-offs/liens/judgments in the last 12 months. It is required that all open collection accounts must be paid in full if their cumulative balances exceed $1,000.

The 3.5% down payment can be from the borrowers own funds or it can be gifted from a family member. Getting Pre-Qualified is the only way for you to find out your options.

To get Pre-Qualified you purchase, you can submit your request online at http://www.rodneymason.com.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
1 vote Thank Flag Link Thu Oct 4, 2012
Wow! You sparked a lot of interest. Your score is low because you probably have few revolving debt (credit cards). If you paid off the cards and closed them, that did more harm than good. Another reason is that the installment loans (car, student loans) have high balance to limit values. Do NOT pay them off. Doing so will eliminate your abilities to buy (no credit lines open). Just pay them down to 50% of the limit and be aware that you need to have a balance still there when you close.
620 is a good score. You can qualify for HUD's $100 down program(with up to $1000 deposit and $900 credit back.)
With a 600 score, you may qualify for a USDA loan with 100% financing and no mortgage insurance.
If your credit Lines are at least a year old each and you have 3, and your collections, if any add up to less than $1000, then you don't need to wait. Check out the link below for $100 down properties from HUD.
Web Reference: http://hudpemco.com
1 vote Thank Flag Link Mon Oct 1, 2012
No offense Joel, but if I make $35k/year, then I'm obviously not looking at buying a multi-million dollar home. Also, I do know my score from all 3 bureus. Roughly 660, 620, and 590. I also have no outstanding debt on any of my credit reports, because I have already pulled them and paid everything off. I am now just waiting to rebuild. Thank you everyone else for your helpful advice.
1 vote Thank Flag Link Mon Oct 1, 2012
AMEN! ! ! !
Flag Mon Oct 1, 2012
Yes you can be approved. If you are not in dire need of closing tomorrow there are a few things that can increase your options and reduce your rate. Please feel free to call me with any questions you may have. I have been working with people in your situation for over 15 years.

Marc D’Angelo
Mortgage Banker
678.442.3405 Office
678.985.6834 Fax
404.925.8291 Cell
mdangelo@brandmortgage.com
apply online: mdangelo.brandmortgage.com



50 Chastain Center Blvd. | Kennesaw, GA 30144
NMLS# 75615 | 658834
0 votes Thank Flag Link Wed Jan 23, 2013
The best thing you can do is talk with a mortgage lender. I would suggest a mortgage broker as they have many options depending on your situation

Rick Musto, Managing Broker
Buckhead Home Realty
770-480-7698
rmusto@buckheadhomerealty.com
0 votes Thank Flag Link Mon Oct 1, 2012
Rates are really low around a the high 3's fixed.Never have they been this low in about 50 years so you may not see it again in our lifetimes.

Do not go for the 15 year fixed to shave a half a percent of interest off or go for the ARM loans in the 2's.

The arm loans will adjust later on and cost you more unless you are planning on holding for just a few years.

Instead do the 30 year fixed rate mortgage in the high 3's.Then when you do have some extra cash you can throw it at the principal to pay it down faster but are not locked into a higher payment with the 15 year fixed.

You want that flexibility with your finances.At these low interest rates my investor clients see it as almost free money to borrow because they can get an investment return much greater than the borrowing rate.
0 votes Thank Flag Link Mon Oct 1, 2012
Thanks Joel. That's definitely good advice that I'll consider. I wanted to go ahead and jump on the low rates, but I never thought about getting an advantage during the winter months also. It does make sense though. Just from your experience, could you possibly give a ballpark rate for what I would be looking at?
0 votes Thank Flag Link Mon Oct 1, 2012
No offense taken.I do not do residential real estate anymore.I haven't for years.

So I don't sell multi million dollar homes but commercial real estate.

If you are 6 to 8 months out you need to talk with a mortgage broker now. Given where your scores are at I wouldn't wait 6 to 8 months to buy.

The interest rates and also property prices could rise substantially by then.

If you can it would be best to be looking now around the cold winter months when many buyers do not want to move and interest rates are at all time lows. That's when you land a great deal.If you wait until next spring then all the buyers start coming out of the wood work.
0 votes Thank Flag Link Mon Oct 1, 2012
...and yes, I will have the down payment when it comes time to pull the trigger. Right now, I am just trying to gauge if it is even a possibility. A relisitic time frame would be about 6-8 months from now. Thanks Soila for the link on a FHA loan. According the calculations on the website, I would be right under the limit at 42%
0 votes Thank Flag Link Mon Oct 1, 2012
I do commercial real estate only these days and work on multi-million dollar deals so I don't have an interest in trying to sell you something on here or land business.

Until you know the score from all three credit companies you don't have anything to work on.

Get the free report as I have shown and then you will be given a code to dispute items online that are not accurate.

Anything from accounts that are not yours (bad accounts), to accounts that have the wrong balance,to accounts that have the wrong credit limit,to judgements,BK filings,repo's,etc.

Right now you shouldn't even be looking at houses with a broker/agent.Get your approval FIRST where they look at pay stubs,tax returns,etc. and then go find the property.If you find the property you want and do not do the financing first you will lose out to another buyer.

I am just giving it to you straight and telling it like it is.Most will sugar coat it and I am trying to save you some time. Get with a mortgage broker who makes you their priority to get things going.
0 votes Thank Flag Link Mon Oct 1, 2012
Hi Tbryan,

Most of the lenders require 640 score, however, Wells Fargo has loan programs for customers with lower scores.

Good luck!
0 votes Thank Flag Link Mon Oct 1, 2012
You will probably qualify for an FHA loan, your FICO score is acceptable and you have been on the job for over 2 years. Do you have the down payment of @3.5 % ? Check with your local lender on the subject.

Soila Thompson
0 votes Thank Flag Link Mon Oct 1, 2012
Your debt ratio sounds out of whack.

You make about 35,000 a year gross and owe 16,000 on a car.The mortgage lender will count the car in your debt ratio for qualifying.

620 I would work on the score and get to 640 at least. Make sure the credit score of 620 is the average of ALL THREE. Experian,Equifax,Transunion.

Most lenders will use the middle score so if one is 620 but the others are 600 and 580 then your middle is 600 and not 620 as you think.

Get a mortgage broker to pull what is called a TRI-MERGE credit report for free and give to you.This will list all creditors and scores whether accurate or inaccurate for you to work on.

Having said that the credit companies want their money and will not let you use this free credit report (costs mortgage broker but not you) to dispute bad data on the report.


http://www.ftc.gov/bcp/edu/microsites/freereports/index.shtml

You can go to http://www.annualcreditreport.com and get one free a year from each of the three agencies and use that to challenge bad items.

Good luck
0 votes Thank Flag Link Mon Oct 1, 2012
The only way to truely tell is for you to meet with a Local and trusted loan officer who can porequailify you at no cost and let you know.
0 votes Thank Flag Link Mon Oct 1, 2012
Tbryan ~ you definately have a "realistic chance". Give me a call and I will be happy to recommend a great lender to you, Also feel free to review properties that are available on my website (see link below).

Fred Yancy, Broker
Crye-Leike Realtors
(678) 799-4663
0 votes Thank Flag Link Mon Oct 1, 2012
Also, I am looking to get a house in the $80k-$100k range. Possible a HUD home.
0 votes Thank Flag Link Mon Oct 1, 2012
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