Financing in Dutchess County>Question Details

Robert Miche…, Renter in Hyde Park, NY

I'm looking to buy but my credit score isn't up to par, does anyone know where I can get a FHA lone around dutchess county with a credit

Asked by Robert Michels, Hyde Park, NY Sun Nov 18, 2012

score under 6 600 I have read the FHA guidelines and they say you can get a mortgage with a credit score as low as a 540 does anyone know of a bank that would do that?

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While there are Lenders who will tell you they can qualify you for a mortgage, I'd like to offer you some advice based on my 23 years experience as a Mortgage Banker. The homeownership experience is a serious responsibility; I recommend putting your credit affairs in better shape before you take on such a responsibility.

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
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528

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1 vote Thank Flag Link Wed Feb 6, 2013
There is theory and then the reality. In theory any lender could originate an FHA loan for a borrower with a lower credit score. The reality, most investors will not purchase such a loan from a lender and that is only half the issue. FHA also has something most LO’s don’t talk about and that is the TOTAL Scorecard. If the borrower’s credit score is that low they probably will not be approved by any AUS because they will not meet the minimal requirements for TOTAL.

What ever you do, do not let someone tell you that credit repair by disputing accurate information is legal, it isn’t. Some info linked below will explain this. Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
1 vote Thank Flag Link Mon Nov 19, 2012
600 is pushing it, will require at least 10% and meet certain requirements.
0 votes Thank Flag Link Mon Nov 19, 2012
Every bank has overlays on underwriting guidelines for FHA. 540 is quite low and shows a problem with managing your money. 1/3 of the mortgage approval is willingness to pay your bills. Go to your local non profit housing group for credit counseling. The counselor will help you find what you are doing wrong and what you need to do. Listen to them and do what they advise. When your score is 640+ you will meet underwriting requirements for credit.
0 votes Thank Flag Link Mon Nov 19, 2012
We offer programs below 600 - but you would need at least 10% in addition to meeting the lender guidelines. I lend nationwide.

Bart Gabe

http://www.bartprequalifies.com

800 315 8803

NMLS# 20743 - my licensing information

http://www.nmlsconsumeraccess.org/ - link to look up my license number
0 votes Thank Flag Link Mon Nov 19, 2012
Consider improving your score a bit, the better the score the better the rate; you can check with the bank you currently do business with, any other local banks, credit unions, mortgage brokers...
0 votes Thank Flag Link Mon Nov 19, 2012
You can try with Hudson Valley Federal Credit Union.
0 votes Thank Flag Link Sun Nov 18, 2012
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