Financing in Sacramento>Question Details

Sherry Bentl…, Home Buyer in R & J Subdivision, The...

I have really bad credit but a good rental payment history.

Asked by Sherry Bentley, R & J Subdivision, The, Pflugerville, TX Mon Apr 8, 2013

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Go talk to Home Loans For All. They specialize in this type of stuff.
3 votes Thank Flag Link Tue Jul 28, 2015
Sherry exactly how bad is your credit? There are different levels of bad
0 votes Thank Flag Link Tue Jul 28, 2015
I have vaious options to help you. You can contact me at and I'll be happy to assist you with further questions as well as providing you with my direct phone numbers.
0 votes Thank Flag Link Tue Apr 16, 2013
I would like to know more
Flag Tue Apr 16, 2013
i would be interested in learning about these options.
Flag Tue Apr 16, 2013
Hi Sherry

If you are looking to buy, the best thing to do is speak with a lender. They will be able to look at everything as a whole and let you know where you stand. I know some lenders ability to loan vary on credit score. However they should also be able to direct you down the right path to improve your credit if need be.

Good luck!
0 votes Thank Flag Link Tue Apr 9, 2013
Your credit does not have to be perfect to buy a home. Best first step is to call a very experienced loan officer and go though your credit with them.
0 votes Thank Flag Link Tue Apr 9, 2013
What is is your question?
0 votes Thank Flag Link Tue Apr 9, 2013
I'm not sure what your question is. Are you trying to obtain credit to buy a home in the Sacramento area? Are you wanting to rent a home in Sacramento? A landlord looking to rent to a prospective tenant can consider different factors on a credit report than a lender looking at approving you for a mortgage to buy a home. In fact, to buy a home, credit is one factor. You would need downpayment money as well as demonstration of the ability to pay the mortgage over a consistent period of time.

What is your objective?
0 votes Thank Flag Link Mon Apr 8, 2013
Are you trying to rent or buy?
If you are buying, yes, you need a FICO score of 620+ (sometimes even a 640). However, I did get a client with a 580 approved for a mortgage, but she had to put down more than 20%, prove that she had a long term job history and write a letter to the lenders.
Some lenders will have contacts with a credit repair company or have suggestions how to get your credit score up enough to qualify for a loan.
If you are renting, it depends on the owners/landlords if they will be willing to rent to you. They may ask to explain the reason for the slow or poor credit history. I have seen some owners completely deny people with foreclosures and bankruptcies, yet I have seen as long as they can pay the rent and have a stable job, owners / landlords will rent.
Otherwise.. good luck!
Nancy S Bergman
Realtor - Lyon Short Sale Certified
Property Manager
DRE # 01893550
Lyon RE Downtown
2801 J Street
Sacramento, CA 95816
0 votes Thank Flag Link Mon Apr 8, 2013
I'm glad you mentioned that your rental history is good. We actually use that to approve you. Credit only affects the interest rate if you choose to obtain a loan. Over the next year after you buy the house, we'll coach you on where and how to fix up your credit.

Ms. Roe is only slightly off. You can get an FHA loan with 580 scores (actually lower than that but the down payment is 10%). With 580 scores, in most cases, the down payment of 3.5% must be yours. Get to 620 and it can be a gift. Many of the larger banks increased their credit requirement to 640 because they can. Smaller companies still offer lower scores because they have to.

Aside from the score, you must have 12 months of on time rental payments and 2 credit cards, each 1 year old and reporting within the last 12 months as open and paid on time. No collections allowed over $1000. Again, my private money people don't care about your credit. They care that you can pay rent on time and can pay the mortgage. The rate starts at 9.5% (lower than the rates were during subprime days). The investor does charge processing fees up front and fees at closing. The fees at closing can be financed. If you find property at 67% of its value, you are not required to put money down. Please visit my website for additional information.
0 votes Thank Flag Link Mon Apr 8, 2013
Your ability to obtain a loan will require good credit-score of 640 or so, and low enough debt to income ratio (showing your willingness and ability to repay the lender). Good rental payment history is a feather in your cap, but not the main criteria a lender considers in making a loan.

If you are buying in Texas (GO COWBOYS!), speak to a lender there. If your poor credit is the result of late pays and charge offs, that's worse than if your score is low because you've never established much credit, than that's different. If you speak with a lender, a good one will work with you to fix the poor credit so you can get a loan. It's a process requiring some time, but better to get started than to wait.

Good luck.
0 votes Thank Flag Link Mon Apr 8, 2013
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