I received an email from a mortgage company a couple of days ago that advertised:

Some great examples:
Below 620 ficos down to 550.
Collections need not be paid.
203ks to 580 fico
1/2% Down Loans
USDA Zero Down Loans
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With the stock market as it is today, some people are lending others money to purchase houses. Their note is secured by real property and they earn more interest doing that than the bank will pay them in their savings, cd or money market account. I know people that lend money to others from their self-directed IRA accounts. And there are sellers out there that are willing to owner finance.

It is not impossible to find financing when you have poor credit; you may have to look a little longer and try a little harder....but it can be done. You know the saying....where there's a will there's a way!

Good luck!

Good credit is important but if you work closely with a mortgage broker or a loan officer you can position yourself in a matter of months to be able to qualify for a loan to buy a home. Always check if anyone is going to run your credit for any purpose bnecause too many inquiries could be affecting your crewdit score also.

PTC,

Great answers here so far. I've met w/ over 20 buyers so far this year w/ not so perfect credit, but we have been able to find them a way to start either getting their credit cleaned up and ready for a traditional loan, or ways to look for "owner-financing" and other non-traditional methods of purchase. I know of 3 lenders right now that are using credit scores 580 < as long as you don't have anything delinquent within the past 9 months.

Maybe your need a credit score boost maybe you need credit repair. You can see my blog and see the difference.

All the answers are good ones. What really matters is exactly what the credit issues are and their impact on your credit score. You would have to have an experienced lender pull your credit report and go over the options that you have to raise your credit score. There are some simple things that you can do that will have a big impact on your credit score. I have had a borrower simply make a $58 payment on a credit card and that raised his credit score over 20 points! Not all cases are that easy but you won't know until you have your credit report.

If you have any further questions, please contact me. I will be glad to assist.

But is it 'Fair Credit'?
Do you know your scores?

http://dallasloanguy.com/docs/about_credit.pdf

Here is a free book about credit.

This would depend upon what your credit score. FHA loans are the easiest type of real estate mortgage loan to qualify for. The FHA guidelines for loan qualification are the most flexible of all mortgage loans that require less than 5% down payment.

Following is the basic FHA loan qualification guidelines.

Two Years of steady employment, preferably with same employer.
Last two years Income should be the same or increasing.
Credit report should typically have less than two thirty day lates in last two years with a minimum credit score of 580 or higher or no credit score at all.
Bankruptcy's must be at least two years old, with perfect credit since discharge.
Foreclosure's must be at least three years old, with perfect credit since.
Your new mortgage payment should be approximately 30% of your gross (before taxes) income.
These are some of the most basic of FHA guidelines for qualifying for a FHA loan. If you have answered yes to most of these statements, you probably qualify for a FHA mortgage loan.

Your first step would be to talk with a loan officer. If you do not know a loan officer, please contact me and I can recommend several for you.

Ptc_sweety,

Usually when people say they do or don't have good credit, I usually ask them if they know what their credit score (FICO) is (please don't reply publicly with that information, I'm just telling you what I ask people). Most people think it's one way or the other, but are often surprised at what it really is.

These days, lenders are being quite strict with credit qualifications. Typically, a 620 is what you're shooting for, although I know a few lenders who can get it done at 580.

I recently had a friend say they had horrible credit...their credit score? 720. Credit scoring is a complicated thing and if you're close enough to one of the goals, there are often simple steps you can take to help boost your credit in a short period of time. I do not recommend you call one of the many credit repair companies you hear of on TV or radio. Although I know there are some honest to goodness companies out there, I have yet to find one. Perhaps on of the other agents on here can recommend a decent one.

I have heard too many bad stories about those sorts of companies - taking money up front and then doing nothing to repair a person's credit...I would hate to think I steered you in that direction, which is why I don't recommend them.

Perhaps your best bet is to sit down with a reputable lender. One who can look at your credit scores and even if your credit score is too low, they can recommend some steps to take to help get you to where you need to be. Sometimes seeing someone else's view of your credit report can help tremendously.

Hope that helps!

Matt Stigliano, Realtor®
210.240.6222
Exit Realty North-San Antonio
http://www.RErockstar.com
"Your all access pass to San Antonio real estate."

Short answer? No... you need at least a 620 mid score on your credit... All lenders are looking closer than ever.
I highly recommend that you find a good lender who will coach you on how to clean up your credit, and work hard to get your affairs in order. The days of easy money are over...

God bless!

DannyT@kw.com