Financing in 45710>Question Details

Holliehouse, Home Buyer in Chillicothe, OH

I have around a 600 credit score. Is there a lender in Ohio who can help me? FHA possible?

Asked by Holliehouse, Chillicothe, OH Thu Dec 1, 2011

I have an average credit score of around 600, 604 being experian, the highest. It is probably going to go up very soon, because I paid some down on my car loan, and the car loan will be on my record for a year in march. I make about 3000 a monthly for the last 4 years. I have some old charge off and collections that are 6.5 years old but since then, I have not had any other issues. I have a current auto loan, and a secure credit card all in good standings. Is there a lender who can preappove me for a home loan? Where? Thanks for any responses.

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Hollihouse,
Have you paid off your old charge off and collection accounts. Even though they show as 6.5 years old, they are reported for 7 years. That means after the creditor updates it-7 years it stays on the credit report.
0 votes Thank Flag Link Mon Dec 5, 2011
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.ftc.gov

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
Web Reference: http://tcurranmortgage.com
0 votes Thank Flag Link Sat Dec 3, 2011
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