Financing in Chicago>Question Details

Rosaura, Other/Just Looking in Chicago, IL

Is my credit score 603 good enough to buy a house?

Asked by Rosaura, Chicago, IL Tue Jul 21, 2009

Im going to school to get my career and I would like to buy a house about 2 years after I start my job?

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I suggest that you work on improving your credit in the coming months. I have someone that I can suggest to help you improve your credit. I also work with many first time home buyers. There are many first time home buyer programs that offer down payment assistance. Joanna Weiss NMLS 230092 773-327-3580
0 votes Thank Flag Link Thu Jul 25, 2013
You will need a min. of a 620 credit score . Its best to consult a local mortgage broker they may be able to pull your credit and give you some direction on how to prepare for your future purchase.
0 votes Thank Flag Link Thu Jul 18, 2013
Hi Rosaura,

My advise would be speaking with a mortgage banker regarding your credit. I have a program for first time home buyers that allows as little as 620 credit score. Please feel free to give me a call. It is never to early to prep for the purchase of a home.

Josh Marks
0 votes Thank Flag Link Wed Jul 17, 2013
Good afternoon Rosaura,

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.

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.…

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

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes Thank Flag Link Wed Jul 17, 2013
That score is good enough to buy a home sing FHA now. How long have you been out of work and how soon will you start the new job? depending on that answer, you can buy in 30 days, 60 days or 6 months.

Riccardo Wardlow
Quality Mortgage Lending


*We do Conventional loans down to a 620 score
*We do FHA loans down to a 580 score
*We do USDA loans down to a 620 score (no money down)
*We do $100 down payment FHA program
*Unlimited Loan To Value refinances on Fannie/Freddie refinances (only on loans originated before May 31st 2009
*We do VA loans down to a 620 score
*We give free counseling on what needs to be done to improve your credit score.
*We do 203k loans down to a 620 score
*We do reverse mortgages
*We do JUMBO loans to 12 million
0 votes Thank Flag Link Wed Jul 17, 2013
In 2 years when you start your job your score should be up... in the meantime pay off debt, never have a late payment on any credit card accounts, and do not rack up too much debt on those cards. As you sit right now, it is very unlikely you will get a loan, especially if you do not have a job. Keep in mind they will require 2 year work history, so you should be fine by then.
0 votes Thank Flag Link Wed Jul 17, 2013

At this point, no. Make sure you pay your bills on time, establish some revolving credit and you will be fine in no time. You want a minimum of 620, and should really be in the 700's. If you want, I can run your credit and send you a copy, just let me know.

Kurt Clements
Senior Vice President
GSF Mortgage
3933 75th St
Aurora, IL 60504

Office: 630.806.7016
Cell: 630.430.1091
0 votes Thank Flag Link Wed Jul 22, 2009
It is nice to see someone looking ahead, my advice:
have two credit cards keep low balances on them, maybe just use them for gas.
Pay your rent on time
try not to bounce checks close to buying
just before you buy don't shuffle money aroud between accounts
Don't finance a car close to buying (it can hurt you debt to income ratio)
pay your credit cards on time
don't let anything default

Good Luck
0 votes Thank Flag Link Tue Jul 21, 2009
We are one of the few lenders that offer FHA loans down to a 600 FICO...its is possible to get a loan with that score.

However, its impossible to say what will be available in 2 years, since mortgage guidelines are changing daily.

Given your time frame you have plenty of time to improve your score over the next couple years.

Work with a credit expert to explain to you what actions to take on the credit repair.
0 votes Thank Flag Link Tue Jul 21, 2009

There are a handful of lenders that can go below 620 for the FICO score. However, you will qualify for less in terms of the loan amount since it will have to go through a manual underwrite. Which means lower ratio's for debt to income along with a higher interest rate. Typically, an FHA loan goes through an automated underwriting system which determines an approval and can accomodate higher ratio's especially if the credit score is 620 or above.

I would advise having a local mortgage broker in your area who is familiar with credit challenged borrowers go over your credit report. That way they can advise you or if its too extensive they can refer you to a credit repair agency. Typically, if you walk into a bank and they turn you down they won't advise you on what you need to do in terms of fixing your credit.
0 votes Thank Flag Link Tue Jul 21, 2009
Sorry, Rosaura, 620 is the lowest (depending on the loan program and the loan to value).

I suggest going to and for free (for real, free), you can check your credit on all three credit services and dispute anything that is wrong. It is a site that is provided free from the government.

If things get cleared up, you could be ready to go in about 45 days!

Good luck!
0 votes Thank Flag Link Tue Jul 21, 2009

You are very close to being able to qualify with your credit. Lenders these days are looking for a 620 middle score. If you like to learn more about how to raise your score and get yourself in the best place to get the best loan program please do not hesitate to contact me anytime...

Steve Smither
Ardain Mortgage
0 votes Thank Flag Link Tue Jul 21, 2009
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