Financing in Flint>Question Details

Carrie, Other/Just Looking in

My boyfriend and I are home shopping, we have a large down pymnt but can't get financed (credit below 600) any advice?

Asked by Carrie, Tue Sep 13, 2011

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We will consider Buyer(s) with less than perfect credit, FICO below 600, with a larger down payment, at least 10% down payment toward purchase. However what I do not know is how much is the purchase, your current other expenses and perhaps the event(s) that has impacted your credit history.

Call me to discuss your situation offline.
0 votes Thank Flag Link Wed Sep 14, 2011
Why not work on improving your credit first and then select a quality mortgage product, and then select the appropriate home to purchase and finance?

Good luck!

Hannah Fliegel, FICO Pro
Credit Repair Specialist
0 votes Thank Flag Link Wed Sep 14, 2011
Hi, Carrie. Depending on the reasons for your low scores, it may be in your best interest to simply raise them. Most lenders required a 620-640 so you're not that far off. My advise would be to talk to a licensed loan officer that is experienced in credit restoration to go over your credit report and possible option to increase your score. Most loan officers have access to credirt repair software that allows them to know exactly what you need to do. This courtsey should be done as part of their customer services, and for free. If they try to charge you or place you in some credit counciling class, politely decline and walk away. Most of what a person needs to do to rebuild their credit do not require such out of pocket costs or services. Good luck!
0 votes Thank Flag Link Tue Sep 13, 2011
It's a long shot but you may be able to use non-traditional credit to prove your creditworthiness - usually it can't be used when there is negative credit, but it's always something to keep in mind. I discuss all of the details about non-traditional credit in the web reference. It won't improve your scores, but it can show a lender other ways you have been responsible with a repeating monthly payment. As far as score improvement, the quickest way is to pay off any credit cards that have balances on them (if any), then to challenge any incorrect information on your credit report (that may be disputing the item, it may be contacting the creditor to get them to correct it without having to go through the dispute process, it may involve other actions), and then also to add new trade lines that you will make payments on time with (that is the slowest method, but it's tried & true). Some people have also been able to get added as an authorized user to a spouse's credit card and retroactively had that credit cards past history added to their own credit history, for better or worse, and have an immediate impact to their credit scores.

FHA loans are OK with a score down to a 500, less than a 580 requires a 10% down payment (which it sounds like you have), but majority of lenders are looking for at least a 620.
0 votes Thank Flag Link Tue Sep 13, 2011
Hi Carrie,

Have you spoken with a mortgage professional about what you might be able to do to bolster your credit scores? It is worth discussing, and may push your ability to buy back a few months or so, but is well worth the wait. Considering the time of year and the state of the housing market, rates are not going up any time soon and it will still be a buyer's market.

Best of luck,

Rachel LaMar, J.D.
LaMar Real Estate, Inc.
0 votes Thank Flag Link Tue Sep 13, 2011
Just our scores alone. I have paid all of my previous debts off in order to start new, but starting new hasn't been so easy. I never took a pay out I wanted to take full responsibility of my mistake and pay everything I owed. Were just in a big bind. Were paying almost $800 a month in rent and paying to keep a roof over our head has always been first and foremost for ourselves and 2 kids (our lives have drastically changed since we had our run in with credit problems!) And we want to be able to offer our kids a home to grow up in and we don't want to have to keep waiting for credit scores to go up. I wish there was a way to prove our trustworthiness with a mortgage.
0 votes Thank Flag Link Tue Sep 13, 2011
Good credit score is required to get the mortgage.But there are few exceptions, you may talk to a mortgage banker to find out whether you are an exception or not.Thank you. good luck.
0 votes Thank Flag Link Tue Sep 13, 2011
From the information you laid out it sounds like your credit is preventing you from getting financed - so it's quite simple, my advice would be to work on improving your credit to a level that will qualify. You will need to have a goal in mind as well as a plan on how to reach that goal, without both you may be aimless in your efforts in improving your credit to qualify for a mortgage (it could take a lot longer than it actually needs to). Since you have spoken with lenders about getting approved and haven't received the answer you are hoping for... what is it they are actually telling you is the issue in preventing you from getting qualified? Is it your scores alone? Is it something on your credit that even if your scores were higher, it'd still prevent you from getting qualified?

Help us give you help.
0 votes Thank Flag Link Tue Sep 13, 2011
We have spoken to lenders before and they're recommendation is open a secured line of credit to boost it up. The home that were looking at right now is a HUD home and with our down payment we would be just shy of half down on that house. Were kind of stuck right here on this house it seems like every time we find a home we like we run into the same problems that we thought we were correcting!
0 votes Thank Flag Link Tue Sep 13, 2011
I would take a look at doing some credit repair work with some of that large down payment you have and push your purchase back a few months. You can normally jump your credit score substantially by getitng credit cards paid down to less than 30% balance. If you don't have any credit cards - consider getting even a secured credit card - you'll find that your score jumps just by having available credit that you are not using.
0 votes Thank Flag Link Tue Sep 13, 2011
Hi Carrie-

Have you talked to a mortgage person about what you can do to get your FICO score raised? You may need to work on your credit for a while until you reach that majic credit score. Have you discussed FHA with your mortgage broker? What about seller financing/kand contract?

Best of luck.

Rich Bennett
415.305.4911

Zephyr Real Estate
DRE#01358540
0 votes Thank Flag Link Tue Sep 13, 2011
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