Financing in Kernersville>Question Details

Mary-marshall…, Home Buyer in Kernersville, NC

credit score of 570 and need a home loan with 0 down...possible?

Asked by Mary-marshall Noble, Kernersville, NC Thu Jan 12, 2012

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8
You can get an FHA loan with under a 600 middle score with some lending institutions but not many. I would recommend finding a broker or service to help you locate a reputable lender that can approve your loan at a decent rate. I have client's who have got approved and received a good rate at The Lenders Network with FHA and VA home loans. If anyone can find you a loan they can!
1 vote Thank Flag Link Sun Jul 14, 2013
Mary,

Your best bet is to talk to a mortgage professional. There are few 100% loans out there anymore; one is VA, USDA and there are some city programs that help areas that need redevelopment. If you like I can refer you to some lenders that I recommend.

Feel free to contact me through my website listed below or my profile here on Trulia.com
Web Reference: http://totalcarerealty.net
1 vote Thank Flag Link Thu Jan 12, 2012
Good afternoon Mary-marshall,

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.consumer.ftc.gov/articles/0058-credit-repair-how-…

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 Mon Jul 15, 2013
Yes it is possible. First step is to gather all of the objective information you can find so you can interview a loan officer. The lender and loan officer you choose is a critical choice. They must be experienced with the programs available and many are not. The article Consultation Interviewing Loan Officers, at Your-Road-Home.com, will serve you well. You will also find a number of articles about the loans and programs available. Be sure and read article #9 about the MCC tax credit. Best tax credit ever. And you will find a link to the NC agency offering assistance and grants for home buyers. Trulia is also a good source of information and after you have gathered up the information you will find loan officers and real estate agents from your area offering their services on Trulia.
Best of Luck, Stephen
Web Reference: http://Your-Road-Home.com
0 votes Thank Flag Link Wed Apr 10, 2013
I would suggest setting down with a mortgage broker. They are not connected to just one bank and have a better field of view of all the options that are available.
0 votes Thank Flag Link Tue May 8, 2012
Go to your local non profit housing group for credit counseling. The counselor will go over your credit report with you. They will tell you what you are doing wrong and what you should be doing. Listen to them and when your score is 640+ you can think of buying.
0 votes Thank Flag Link Sun Jan 15, 2012
I don't know where you would qualify for a loan with a 570 but I'd recommend getting a mortgage loan analysis from a licensed loan officer who's got the ability to get you approved down the road. (*620 currently required for both programs)

Like Larry mentioned there are VA and USDA loans available if you qualify and a licensed professional that Originates only mortgages (like myself ;-) could help! Feel free to contact me anytime if you wish....I am in the Dash

Credit score alone isn't a guarantee for approval though, so I'd recommend a consultation in order to get your own personal plan of attack.

You can google credit rebuilding and even check out the fantastic credit information here on Trulia but you might need to take two steps back prior to that big leap forward across that threshold, but it is worth it!! Learn and practice the basic fundamentals of Credit Management and you could close in June.
0 votes Thank Flag Link Thu Jan 12, 2012
Good credit score needed to get mortgage but there are some exception. So please talk to a mortgage banker.
0 votes Thank Flag Link Thu Jan 12, 2012
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