Question Details

Jennifer, Renter in Mesa, AZ

my credit score is 551 i would be a first time buyer is there anyway i can get a loan?

Asked by Jennifer, Mesa, AZ Sat Sep 24, 2011

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5
Hi Jennifer
Credit score is the baseline, but also job history, source of income and debt to income matter too. In these stringent underwriting times, you need more than a 620 to get a loan! if you just started a job, have a big car payment, revolve credit cards that can hurt your ability to get a loan. The first hurdle is credit score, work on that. But having consistent earnings and a low debt to income ratio seals the deal!

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1 vote Thank Flag Link Sun Sep 25, 2011
I agree with Trevor. Take some time and try to work on your credit just a little. If you don't with that credit score, you'll need 10% down. Read my article below and see if that will help yo or try to find a local loan officer to sit down with you and help put you on the right path.

Best of Luck!
1 vote Thank Flag Link Sat Sep 24, 2011
hi Jennifer,

I know of only one lender that advertises down to 550 scores. However, it is to your benefit to work with either a credit counselor or a good lender that offers credit repair services to qualify with more lenders and get better rates and terms.
Good luck! Jim
0 votes Thank Flag Link Sun Sep 25, 2011
Go to your local non profit housing group for credit counselor. They will go over your credit report with you and advise you. They will also tell you what you need to do to get your credit score higher and work out a budget with you. Your current score does not show a willingness to pay therefore no mortgage.
0 votes Thank Flag Link Sat Sep 24, 2011
Good morning Jennifer,

It is unlikely you could be approved for mortgage financing with that credit score. Beware of any mortgage professionals promising you an approval with such a score.

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 http://www.consumer-action.org is an excellent resource for objective advice on all things credit related. Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams.

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.

Hope that helps!
Trevor Curran NMLS#40140
tcurranmortgage
0 votes Thank Flag Link Sat Sep 24, 2011
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