Foreclosure in Roxborough>Question Details

Sara Denbow, Home Buyer in Philadelphia, PA

i am trying to buy a foreclosed house in my area, my credit score is in the mid 540 -580 will i get a loan ?

Asked by Sara Denbow, Philadelphia, PA Fri Apr 11, 2008

and how do i go about getting the loan

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Answers

6
Hello,

You do have hope! My company will go down to 531 credit scores on purchases with and FHA insured loan. You have to have 3.5% to put down on the property and have shown some credibility in paying off your recent debt. Rent checks, auto loans, credit cards, utility bills, etc. all work. My contact number is 888-536-3001, ext. 1540 and my email is jjohnson@lendamerica.com. My name is Jake Johnson. Talk to you soon!
1 vote Thank Flag Link Tue Apr 21, 2009
Sara,

You may be able to get a loan depending on why your credit is 540-580? My company does have a program that allows you with a 580 to go to 100% as long as there is no derogotary credit or it must be paid off. Also I have an FHA lender that will allow you to go to 97.75% with 580 and the seller can even contribute the other 2.25% into an acceptable down payment assistance program. Please let me know if I can be of further assistance to you as i'm always available 814-308-3276. Thanks and good luck
1 vote Thank Flag Link Fri Apr 11, 2008
You have a shot at an fha, but you need to speak with a lender and get prequalified.
0 votes Thank Flag Link Tue Apr 22, 2008
Sara, you really need to examine your credit reports before stepping in to the real estate market. You can pull all three reports at: http://www.freecreditreport.com and analyze why your score is below 600. You may need to work with creditors dillegently and also verify if you have old negative credit. If you have an old account from 2000 and haven't paid anything since 2000, I would suggest you ignore it. After 7 or 8 years that account should fall off. I am not professing I am a credit counselor, I am just answering based on my own experience.

Also, you really want to find a trusted lender or FAIR mortgage broker. They can give you straight answers as to when and if you are ready for financing. Clean credit is your first step toward owning property!!!

As far as foreclosures, or REO/Bank Owned Properties, you will need money for U&O, and any repairs needed based on the U&O report.

Lastly, you may need money to hire a contractor to turn on and turn off the utilities if the foreclosed property has been sitting a while!

Hope that helps,

Mike Doyle
0 votes Thank Flag Link Thu Apr 17, 2008
Sara, you've gotten some good advice already on getting a loan with your current credit score, so let me add a note about buying a foreclosure. It's a tricky business.You need to know what state of foreclosure the property is in, whether there are back taxes, an IRS lien, and of course, the condition of the property and how much it will take to make it liveable for you. Check out my website for more information. http://www.janiceroosevelt.com
0 votes Thank Flag Link Sat Apr 12, 2008
You may want to check out the following link about credit scores. It may shed some light on your question.
http://www.myfico.com/

Best wishes.
0 votes Thank Flag Link Fri Apr 11, 2008
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