Financing in 35150>Question Details

Leah_creekmo…, Home Buyer in 35150

my credit score is 544...need a loan for a house what can i do?

Asked by Leah_creekmore, 35150 Wed Jan 27, 2010

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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. HUD does require that all open collection accounts must be paid in full if their cumulative balances exceed $1,000.

Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified you purchase, you can submit your request online at http://www.rodneymason.com.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

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
1 vote Thank Flag Link Sat Jul 14, 2012
Loans are not just for people with good credit. the question is, what are you willing to pay to get a loan?
There are hard money lenders out there that can help you in your situation, but it will cost you.
Read more in the link below and see if it's a good fit for you.
Web Reference: http://hardmoneyloans.org
0 votes Thank Flag Link Sat Sep 29, 2012
Refreshing to hear and I've E mailed you. I always thought that if you had a lot of money down and or equity you could compensate for bad credit. Shame my fiancee had to go on disability and his then mortgage company refused to work with him at the time. He had good credit before this all happened. We have money to put down and got the land at a steal, even the tax appraisal is$ 16000 for this land and we would have it paid off in time for the loan and ready to use as collateral. I can't believe how hard it's been to obtain financing.
Flag Sun Sep 7, 2014
Yes you can buy a home with that 544 credit score. You will have to put a 50% down payment. The rates are low, but it is a 3, 5, or 7 year ARM loan. Which means you rate and payment is fixed for the selected time period and then it can change after the term. It is a great way to get your credit back and own a home at this amazingly opportune time. Rates have never been so low and home prices are at their lowest. 2013 home prices are projected top go up for 6 straight years.

Also I am a credit counselor/ loan officer . So the best way to increase your credit scores is to get new credit. Go to your bank and ask for a secured credit card. This is were you put $200 in an account tied to that credit card. Then all the activity on the card will allow you to start to reestablish higher scores. Never use more then 29% of the available credit limit and always pay off the monthly bill completely never leaving a balance. Never be late on the credit cards. It would be best to have three open secured credit cards. This is the fastest and most effective way to increase your scores. Also if you have any more question regarding home loans please/ credit feel free to call me at 858 750 1073. Russell Power Integrity First Financial Group
0 votes Thank Flag Link Thu Mar 22, 2012
There is also a 35% down loan for the low credit scores.
Flag Thu Mar 22, 2012
Check out the Financial Peace University by Dave Ramsey. It's a life changing experience.
Web Reference: http://www.DaveRamsey.com
0 votes Thank Flag Link Wed Jan 27, 2010
Don't buy. Keep renting.

Meanwhile, work on improving your credit score. You already have a good idea why it's so low. Work on improving it. A mortgage broker can take a look at your credit report and make some suggestions on what to address first.

Even if you managed to get a loan, it wouldn't be on very favorable terms. So: Improve your credit score. Then consider buying.
0 votes Thank Flag Link Wed Jan 27, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
With a credit score of 544 it will be tough to get a loan of any kind. You should talk to a mortgage lender to get more information about what is available and to learn more about what you will need to do to improve your score. The link below will give you some basic information about credit scores that I pulled together from several different sources.

Check it out and let me know if it helps!

Best
Ron Rovtar
Boulder, CO
0 votes Thank Flag Link Wed Jan 27, 2010
Leah_creekmo

As Dan stated, you need to contact a local bank or broker that will be willing to pull your credit and discuss what you need to do to improve it. If a recent chapter 7 is the reason, you'll have to wait 2 years from the date of it discharge. If a foreclosure, 3 years minimum.

If the collection(s) are less than 2 years old, pay them off in full or for a negotiated lower settlement. Medical collections are a non issue. If you have liens or judgements, those will have to be satisfied in full or in some form of repayment. If the latter, they will not comes off your credit until they are paid in full. In the interim, the monthly agreed payment(s) will be applied against your income. Lastly, paying off judgements or liens will not improve your score, only your credit history and must be paid off or in repayment for you to qualify for mortgage consideration.

There's other measures you can also employ to better your score (i.e. opening credit cards, being placed on someone else card as a co-borrower or authorized user), but these option should be known to an experienced LO and shared with you during the course of your consultation. Hope this helps.
0 votes Thank Flag Link Wed Jan 27, 2010
FHA loans require a credit score of 620 and 3.5% down--Work on improving your credit--if you have visited with a qualified loan officer(s) ask if he/she has any tips as to what can be done to improve your score as quickly as possible.
0 votes Thank Flag Link Wed Jan 27, 2010
Improve your credit score. Talk to a local lender. Have your credit report pulled. See what is wrong. Then follow some specific steps your lender should be able to suggest to increase your score... over time.
0 votes Thank Flag Link Wed Jan 27, 2010
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