Financing in 30281>Question Details

Hope Hays, Home Buyer in Stockbridge, GA

Im a first time buyer with poor credit, can I get a house or am I wasting time?

Asked by Hope Hays, Stockbridge, GA Tue Nov 6, 2012

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When I hear people say "bad credit" or "poor credit", it means that most likely it's not so much that it's bad rather that you don't have any "good credit". Doesn't make sense does it.

Good credit can offset bad credit like a GPA. If your credit is bad, then open up 3 secured credit cards from a credit union or from HSBC, Orchard Bank etc. Let them simmer on the report. After 30 days, charge up to 25% of the limit and hold it there. After 90 days, pay off the balance. After 120 of opening the card, charge it up again to 25% of the credit limit. That pops the bureau with activity info that will increase your score.

The bad credit: Now you have to determine what to pay on and what not to pay on. Lenders disregard medical collections but the collections may still affect the score. It's actually illegal per HIPAA to report medical collections to a public site but they don't know that. You can request removal of that using the 3 credit bureau sites' dispute system. Other collections that are no longer reporting after one year are not affecting your score. However, banks require collections totaling over $1000 be paid off. How do you pay them off?

Call the creditor and settle for no more than 40 cents on the dollar. If they refuse, call them back in a couple of weeks and offer 25 cents on the dollar. They all have a deadline to collect or the account goes cold. If they threaten to garnish wages or sue you, set up a payment plan. Lenders will accept collections on a credit report if you are making on time payments to the creditors.

If the debt is huge, like a car loan, you need to dispute the balance. The car should have been sold and the extra money applied to the balance. Otherwise, they are improperly reporting and the account must be removed. Student loans have to be paid if they are state or federal.

If you need forms for credit dispute, contact me and I'll email them to you. People who ask advice through Trulia do not have to pay for the forms. I do not fix or repair credit. I will coach you but you'll have to name your first born after me...(just kidding). Honestly, I wish I could make more time to help people with credit but it is very time consuming. DO NOT pay anyone money up front to fix credit unless the company retained an attorney. It is ILLEGAL for a person to charge money upfront for services involving credit repair. Only the lender can charge for appraisal or credit report access (not for credit repair).
2 votes Thank Flag Link Tue Nov 6, 2012
Dear Hope:

First time homebuyer with poor credit. The first thing would be to talk to a mortgage loan officer and determine what poor credit relates to. Is it a low credit score, collections, judgements, past due accounts, lack of credit, there are a number of things that determine where the credit stands. Today's standards, which are ever changing, indicate that a good credit is that of a 640 score (middle score) without collections and judgements and lates within the last 12 mos.

However, do not give up, many first time homebuyers can work hard to get the credit where it needs to be. It does take time and work to improve the score, but re-scoring is available.

Call upon a mortgage Loan Officer, to get prequalified and see where you stand and that Loan officer should give you a roadpath to make it better.

Lynel Adams
Sr. Mortgage Loan Officer
Silverton Mortgage Specialist
NMLS 359696
770-318-6740
1 vote Thank Flag Link Wed Nov 7, 2012
The best way to determine that is to speak with a Loan Officer. There are guidelines for FHA and Conventional loans. They have score requirements and then it also depends on what types of credit issues you have had in the past.

You can buy - it is just a matter of when you buy and what you have to do to line yourself up to buy. If you would like to discuss this further and are not working with a Realtor®/agent, please call me 770-634-1892 Jerri.
1 vote Thank Flag Link Wed Nov 7, 2012
Hello finding out what you options are is never a waste of time..it would be wise of you to seek the advice of a lender. I could get you in contact with some great lender options & I would love to help you find the perfect home. Kaylane Peters. Keller Williams Realty Metro Atlanta licensed in Ga. & La. 504-373-9696. Find me on facebook **KaylaneSellsLuxury**
1 vote Thank Flag Link Tue Nov 6, 2012
I work for a direct lender in the mortgage industry who offers conventional, FHA VA, and USDA loans in all 50 states. Are lowest score we accept for government loans are 550 when most lenders require a 620 and brokers a 580. You have to have two years of income with a score over 550 with bankruptcies discharge date 2 years and over. We have basic guidelines and a pretty easy process. Feel free to text me or call me anytime up to 10:00pm Eastern with any questions.
Brian Young 214-797-3479
0 votes Thank Flag Link Sun Jan 10, 2016
Talk to a loan officer. He/she should be able to give you several options. Shop around with different mortgage brokers and see who can be able to give a better deal.



Check if you qualify for mortgage. Try http http://:www.whywaitbuytoday.com
0 votes Thank Flag Link Sun Aug 11, 2013
Hope,
If all else fails try to find a home to rent with option to buy while you work on your credit issues.

All the best,

Gary Geer

http://www.ggeer.illinoisproperty.com
0 votes Thank Flag Link Wed Nov 7, 2012
HI HOPE,
MAY I SUGGEST THAT YOU CONSIDER A LENDER THAT IS NOT A BANK OR A MORTGAGE COMPANY. MANY PEOPLE ARE IN YOUR SITUATION AND FIND THAT THEY WILL HAVE TO WAIT UP TO 3 YEARS TO BE ABLE TO FINANCE A HOUSE. I WOULD LIKE YOU TO CONTACT A LENDER, LICENSED IN GEORGIA THAT MAY BE ABLE TO HELP YOU. WITH THE MARKET AS IT IS TODAY IN GEORGIA, THIS IS A GREAT TIME TO BUY. YOU SHOULD ACT NOW.
THE CONTACT INFORMATION :
The Westmoore Group, LLC
http://www.westmooregroup.com
Ph: (646) 801-6190
Mb: (917) 375-2386
Fx: (646) 619-4291
BEST IF LUCK TO YOU
0 votes Thank Flag Link Tue Nov 6, 2012
Hi Hope,
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.

Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your 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
0 votes Thank Flag Link Tue Nov 6, 2012
If you know your credit is an issue you can fix it. Now more than ever, lenders are strict. The minimum credit score was increased TODAY from 620 to 640. There is a system I can recommend where you can dispute & raise your credit score significantly. This is certainly not a waste of time!
0 votes Thank Flag Link Tue Nov 6, 2012
Don't give up Hope. Check with a few local mortgage lenders to get pre-qualified. Go to those that do not charge application fees (ask them before moving forward). Those that want your business will be happy to guide you through the process of getting your credit to the point of being able to buy a house. Will it be easy? I don't know, but make that first call to find out.
0 votes Thank Flag Link Tue Nov 6, 2012
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