Financing in Covington>Question Details

Quentisha Se…, Home Buyer in Covington, GA

me and my husband are looking to buy our first home byseptember 2013

Asked by Quentisha Sears, Covington, GA Mon Jan 14, 2013

me and my husband are looking to buy our first home, we paid off most our debt except for some medical ? His credit score is 584 and mines is 516.We have to2 personal loans to help rebuild our credit and we bring home $4000 a month combined. What else should we be doing ? We would like to have a target date of september 2013

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0 votes Thank Flag Link Fri Jul 5, 2013
You should also look at opening a small secured credit card through your bank or credit union. I work with alot of borrowers in your situation. You should also look at youbank accounts and make sure you have no bounced checks between now and when you purchase. I would love to take a deeper look for you and see what else can be done to improve your scores.
0 votes Thank Flag Link Wed Jan 23, 2013
How about we can you into a house now and you can work on fixing your credit while living in your house. That way, once your credit is fixed up, you can go back to the loan officer(s) below and refinance out of this loan. I'll give you the short version here but check out my blog for other information.

Down Payment: Zero if house purchase price is less than or equal to 75% of the house value.
Rate: Starts at 9.5%
Term: Amortized over 30 years, balloons in 3 to 5 years
Use: For primary or investment residential property or Commercial
Minimum loan amount: $90,000
Minimum score: Credit does not affect approval but does affect rate
Requirement for approval: The main thing is that you have an income (W2, Tax returns or average of 3 months bank statements can be used).
Application Fee: Varies depending on program selected (ranges from zero to $895)
0 votes Thank Flag Link Wed Jan 16, 2013
You would need to contact each of your creditors directly to see what your options are. Paying off derogatory debt will help improve your credit score in the long run, but not immediately.

With collection accounts, most of the damage is done when they are initially placed on your credit report. Some collection companies are now reporting you are late each month the debt goes unpaid. This continues to drag on many people’s credit scores each month until the debt is paid in full. Until you do that, your credit score has little chance of improving.

In exchange for paying the collection account in full, you can try to negotiate to have them completely remove the derogatory item once the payment is received. Some collection agencies will do this, while others will not. You will just have to ask each one and see. If they will not remove it, just having it paid and closed will help in the long run.

To build positive credit, you typically need to have 2-3 trade lines reporting for 12-24 months. There should be no late payments or other derogatory items reported in the last 12-24 months.
0 votes Thank Flag Link Wed Jan 16, 2013
For an FHA mortgage, most lenders require a 640+ credit score for the last 2-3 years now.

Prospect Mortgage is one of the few direct lenders to offer an FHA 580-639 FICO loan program. Credit profile is a major factor in a mortgage approval. Generally, there should be no late payments, new collections accounts/charge-offs/liens/judgments in the last 12 months. It is required that all open collection accounts must be paid in full if their cumulative balances exceed $1,000.

The 3.5% down payment can be from the borrowers own funds or it can be gifted from a family member. Two months of reserves for the PITI (Principal + Interest + Taxes + Insurance) payment + HOA Dues will be required. This must be from the borrower’s own funds and not a gift.

Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at
Licensed in Alabama & Georgia with over a decade of lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes Thank Flag Link Wed Jan 16, 2013
You are on the right track. Like mentioned by other folks on this board, you will want to get a copy of your free report. You can use to obtain this for free. There are three bureaus so make sure you get all three reports. To qualify for FHA you only need a score of 620 and your pricing will still be great. FHA financing is a government insured program that is great for people in your situation. It is important that you try to get any collection paid and closed as well. Just clearing out a $100 phone bill collection can sometimes increase your score by over 20 points. It does help to hold onto one or two credit cards with low balances and good payment histories as well. I usually tell my clients to hold onto two cards and use them once a month. Then pay them off once you get the bill. This way you show a low balance; what you do not want is to be over 50% of what the credit limit is. This means that if your credit limit is $1000, you do not want to owe over $500 on that card because then they will lower your credit down because it will appear that you are "maxed out". Just keep doing what you are doing. Once you are ready to get prequalified, give me a call and I can see what I can work out for you as far as a rate and program goes. Good luck!

Jeffrey S Spatz
GMAC Mortgage | Mortgage Loan Officer
NMLS# 202707
1170 Peachtree Street NE, suite 1200, Office 1230, Atlanta , GA 30346
M + 404 309 4936 | F + 866 846 8474
0 votes Thank Flag Link Tue Jan 15, 2013
Hello Mrs. Sears.

A lender's hard inquiry could lower your credit score.

You should consider pulling your own report (which will have no impact on your credit scores) at Validate that everything appearing there is accurate. If anything appearing there is inaccurate, write to those creditors (certified mail, return receipt requested) and ask for an explanation. Please do not use that enticing dispute button there on the screen to challenge anything you find to be questionable. Open disputes must be resolved before an FHA loan will be approved.

Consider an eight-hour local home buying class. You'll find HUD-approved Housing Counseling Agencies at… The counselors will be a great resource for you during the home buying process and the certificate is often required for the different down payment assistance programs.

Hope that helps.

Solomon Greene
Georgia Real Estate Brokers Associate, REALTOR® Certified Affordable Housing Counselor
Keller Williams Realty Atlanta Partners
(678) 775-2677
0 votes Thank Flag Link Tue Jan 15, 2013
Hi! Sounds like you have a plan and are your way to home ownership. You will need to get your scores higher, more like 640+. If you qualify for a VA loan, you need a 620. Either was, I strongly suggest you contact Tommy Thompkins with Acopia Hine Loans. He has been a senior loan officer for 12 years and is a preferred HUD lender and very successful at helping buyers accomplishing their goals. You can reach him at 404-312-5236. Good Luck. And when you are Prequalified to buy I'll be happy to help you find your home thank you
0 votes Thank Flag Link Mon Jan 14, 2013
I can recommend lenders that can help you work with your credit concerns. And you will know your qualifying amount which will help narrow the home search. I work the Covington market and will be glad to aasist you with the home buying process.
Best Regards,
0 votes Thank Flag Link Mon Jan 14, 2013
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