Tiffany, Home Buyer in Ohio

Is there any bank that will work with us on a new purchase loan with a credit score between 608-612? It feels like we have hit rock bottom.

Asked by Tiffany, Ohio Wed Nov 23, 2011

We are looking at a home in Jefferson county. However, our credit score is under 620 and it seems that no one is willing to work with us on getting a loan as well as finding someone who can lead us in the right direction. We have contacted different agencies with the same question, but no one seems to give us any information other than "get a credit card and build your credit". We are afraid that the house will sell in the meantime. Can anyone please help us?

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Tiffany there is no quick fix for credit, good scores are earned. This is why buyers needs to work on their credit and meet with a loan officer ahead of looking for a house for sale, At this point you need to find a loan officer that is willing to help you, they are out there. Good loan officers build clients for life, not just i mortgage,
Web Reference: http://www.ScottSellsNH.com
1 vote Thank Flag Link Wed Nov 23, 2011
Tiffany, Most investors that purchase loans from lenders like us have a minimum credit score threshold which is the point that gets the most publicity. That really over-simplifies the problem, credit score is not the only thing that is taken into consideration when we decision a loan application. Opening a credit card is not the only step that is important, a strong budget will also help. I am working on adding a page to my site for helping people that are credit challenged, until it is published you may want to check out my list of what not to do, I linked to it below, good luck,
1 vote Thank Flag Link Wed Nov 23, 2011
Tiffany,
Go to your local nonprofit housing group for credit counseling. The counselor will go over your credit report with you. They will tell you what you need to do to get your FICOs up. Follow their advise and your FICOs will go up. When it is 640+ then you will be able to buy a home.
0 votes Thank Flag Link Fri Nov 25, 2011
You're scores aren't that far off. Have you sat down with an licensed LOL experienced in credit restoration yet? They should be able to tell you exactly what you may or may not be able to do to raise your score. Furthermore, they should be able to do so free of charge.
0 votes Thank Flag Link Wed Nov 23, 2011
Good afternoon Tiffany,

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
0 votes Thank Flag Link Wed Nov 23, 2011
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