Financing in Johnsburg>Question Details

Needhousenow, Home Buyer in Johnsburg, IL

can anyone finance 580 middle in IL. Is there still down payment assistance available in McHenry County?

Asked by Needhousenow, Johnsburg, IL Tue May 4, 2010

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Dear Friend,

It appears that you may be able to squeak by and get some type of mortgage for your home. Please understand that a low credit score of 580 is considered a poor credit rating. You will be paying for your poor credit for years. The interest rate on your mortgage is going to be higher, utilities for your home higher, insurance for your home and car higher all a result of your credit rating.

Why not work to improve your credit rating first, then apply for a sensible mortgage? There are a variety of good mortgage products that get very interesting once you get above the 720 point range. I have written blogs and articles on the subject matter here on Trulia.

Step 1 improve your credit rating
Step 2 find a quality mortgage product that is good for you and set yourself up for success long term
Step 3 find a home that suits you and your family.

Good luck!

Hannah Fliegel, FICO Pro
The Credit Repair Expert
0 votes Thank Flag Link Wed May 5, 2010
I agree with the Mortgage persons who answered but very honestly you really need a local lender who has access to the programs currently available in the area and knows the area as well.
Web Reference:
0 votes Thank Flag Link Tue May 4, 2010
I offer FHA down to 580. 3.5% down required from own funds. No gifts allowed or assistance programs. Must show proof of 12 month housing history - no lates. Must be shown in cancelled checks from borrower's bank account.
0 votes Thank Flag Link Tue May 4, 2010
If you haven't done so yet, visit with any qualified loan officer(s) first, see exactly what your budget can handle and check your credit score--their scoring is different-- your loan officer may suggest ways to inprove your credit as fast as possible. Currently FHA loans do require a minimum credit score of 620 and 3.5% down, there may be lenders that will work with a lesser score however, the interest rate may be higher--keep in mind that a mortgage outside your budgetary constraints can dramatically alter your overall living conditions. So, be sure to factor micro and macro economic concerns into your mortgage amount deliberations. Consider working on improving your credit first--keep credit cards below 50%, dispute old negatives, pay all bills on time, pay off old debt, pay down debt, etc.
0 votes Thank Flag Link Tue May 4, 2010
There were some programs available including $5000 towards closing costs that do not have to be repaid, but you must live in the house for 5 years, and they also had up to $30000 in form of a note or lien on the property that would be repaid when you sold, and again, you must reside in the home for 5 years. I DO NOT know for a fact if these programs are still in effect, or if the money has run out yet.

Give me a call or email me with more info and I can direct you to the bank that was handling these loans IN McHenry County.

Peggy Baker, Broker Associate (224-805-1068)
Web Reference:
0 votes Thank Flag Link Tue May 4, 2010
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