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Holliehouse, Home Buyer in Chillicothe, OH

In Ohio, can I get a 30k home loan with a 563 credit score and 36k a year income?

Asked by Holliehouse, Chillicothe, OH Sun Jun 27, 2010

About 4 year go when I had my first child, I lost my job and had some unsecure cards that never got paid. In Ohio, can I get a 30k home loan with a 563 credit score and 36k a year income? I have some money for a down payment. Any advice would be helpfull. Thanks, Hollie

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I appreciate the input, I looked at my credit report and it was overwhelming the amount of false information and duplicate accounts posted. I contacted several lenders who, said I was paid in full and I must dispute the info to get it removed. It seems crazy I should need to pay money, with certified letters, just to prove that someone dropped the ball or recorded false information, some accounts in great standings, after full ontime pay off, they left the account listed in a vague way as to bring down my score. I actually owe around 6k in unsecure 4 year old debt cards-total including interest, lowes, bestbuy, peebles, ect. As soon as I can remove all of the false and duplicate info, I plan on just paying off the remaining 4yr old lenders. I really dont know if this will help my credit score at this point but I feel like it is the right thing to do. I also opened a secure credit line with Capital One. I would still love to get a loan for this house but at the rate it take to dispute info it might be a year or more before I see results. I looked around for a goverment based credit help program with no resolve. How come the goverment bails out everyone but the little guy, guess I can always file chaper 13, but thats an extreme lose lose for everyone.
0 votes Thank Flag Link Wed Jun 30, 2010

You need at least a 620 credit score to get a conforming loan. Your income is good, you have downpayment, and the amount you are wanting to borrow are all things in your favor. Unfortunately, credit score is the most important. However, as some have said, medical bills are the one thing that you can work on that won't count against you sometimes. If you can find a good lender in Chillicothe (or in Columbus, see my website) they can counsel you on how to go about working through some credit issues. I know a lender who is excellent at this and can help, FWIW. You are not that far off, you just need to do a little work.

Web Reference:
0 votes Thank Flag Link Wed Jun 30, 2010

Unfortunately, it is unlikely that you will be able to find a lender that will take a chance on you at this time. We recommend seriously working on improving your credit score.

There are a couple of possibilities that may help you get where you need to be. Many people in your situation, are finding help through seeking either seller financing or "lease options." Consider looking into these possibilities.

Best wishes,

0 votes Thank Flag Link Mon Jun 28, 2010
Hi Hollie,

If you elected to go with an FHA program, they generally don't consider medical collections. If the medical debt makes up the bulk of your existing collections, I'd probably work at paying off the non-medical debts first. The main thing is that you have no late rental payments and keep your other accounts absolutely current while you try to bring your score up. It would definitely pay to check out a couple of credit repair places (certified or licensed only!) so they can review your credit report with you and advise you on the particulars of your case.

Depending on the ratio of consumer to medical debt collections, you may not be that bad off. Maybe touch bases with an FHA lender or two (or three) and just have a chat with them to see what they think. It sounds like you already have a copy of your report. Take that with you.

Good luck!
0 votes Thank Flag Link Sun Jun 27, 2010
Hollie, there is no way to do that now. If you do the right things in time you could buy a house.

In the meantime be smart. Use the time instead if losing that time. Fix your credit, save for a down payment. The best way is to cancel your cable, lose your internet, do not eat out, and buy nothing you could do without.

You can do research now. Find out what real estate goes for, what areas would be good to buy in, what kind of house you would prefer and more.

That way when your credit finally gets god enough you could buy what you could afford and do it the right and safe way.
0 votes Thank Flag Link Sun Jun 27, 2010
Thanks for the help Frank, Probably 4k in credit dedit, and hospital bills, have had this job for over 2.5 years, and have been trying to keep everything paid up since then. I currently pay over 10k a year for rent and have been here for 2 years. If I could get out from paying rent I could pay off any bad debts in just a matter of months.
0 votes Thank Flag Link Sun Jun 27, 2010
You might want to talk with a credit repair company to determine what they can do. Theoretically there are one or two programs that you may or may not fall under and it depends on your real annual income. The question is a little too general to answer with any certainty because a lot of info is missing...For instance - how long have you had that income? How far in the hole did you get? What's the recent credit activity looking like? Are you paying ALL of your bills on time now and have you been doing so for at least a couple of years?

If your credit took a dive and it was just four years ago, there is probably a lot you can do to bring that score up - much of which involves actually paying off some of those old debts. Otherwise, few creditors are going to be interested in such a loan - knowing that you have decent income, yet still haven't paid back what you owed. You'd want to bring that score up to a minimum of 620 and preferably 640 or higher. Note that is the middle score.

Depending on your total situation, this might take 3-6 months if you work at it, longer if you don't.
0 votes Thank Flag Link Sun Jun 27, 2010
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