Home Buying in 60612>Question Details

Beverly803, Home Buyer in 60612

Are there any loan programs for someone who has a median credit score of just under 600? I have a stable job history, & had no late payments in

Asked by Beverly803, 60612 Sun Feb 6, 2011

a yr. I am looking for a 30 year mortgage.

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Good afternoon Beverly803,

We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.

It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. 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 CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.
http://www.consumer-action.org/

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.
http://www.consumer.ftc.gov/articles/0058-credit-repair-how-…

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.

Trevor Curran
NMLS #40140

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0 votes Thank Flag Link Thu Jun 20, 2013
Just as you got yourself into a "bad credit" situation, you can get yourself out. Review your credit report with your lender (I suggest Guaranteed Rate, JD Cortese, JD@guaranteedrate.com) and get your credit in order.
0 votes Thank Flag Link Wed Jun 19, 2013
FHA would be your best bet. Reach out to your mortgage lender about this they will point you in the right direction.
0 votes Thank Flag Link Thu Jun 6, 2013
Yes, FHA does not have a FICO score minimum, but most banks impose a 580 to 620 requirement.
0 votes Thank Flag Link Thu Jun 6, 2013
I work with lenders that might be able to help you.

Please contact me at 773.598.9309
0 votes Thank Flag Link Thu Jun 6, 2013
Yes, American Financial Solutions has many loan programs for people with credit scores under 600. Please call me at (773) 755-9200 or ChicagoLoans@aol.com to discuss your options.
0 votes Thank Flag Link Wed Jun 5, 2013
Hi Beverly,

Call Mary McElree @ Wells Fargo, she may be able to help, 847-770-3075 (C) or 312-274-4139 (D), tell her I referred you.

She's awesome! Good luck!
0 votes Thank Flag Link Fri Feb 11, 2011
Hi there, Beverly!

The only way to find out accurately and precisely the programs for which you will qualify is to speak with an experienced lender.
If you do not have a lender to assist you, your real estate agent should be able to provide you with several referrals.

If you do not yet have a real estate agent assisting you with your search, please feel free to contact us at 312.242.1000 as we would be happy to help you find a lender!
Web Reference: http://www.dreamtown.com
0 votes Thank Flag Link Tue Feb 8, 2011
Well's Fargo is actually doing FHA loans with these credit scores: 500-579 allowed with maximum 90% LTV(additional requirements must be met), 580-599 allowed with maximum 95% LTV(additional requirements must met), and 600 and higher allowed with maximum 96.5% LTV.

If you would like me to refer you to a loan officer at Well's Fargo, please give me a call at 708-922-4130.

Naiyoko
Coldwell Banker Residential
0 votes Thank Flag Link Mon Feb 7, 2011
Hello Beverly:

An Affiliate that we use for referrals has sent me an email recently saying that some FHA financing can go down as low as a 530 credit score. If you would like to contact me directly, I can give you their telephone number so that you might get in touch with them to get the details.

Good Luck!
0 votes Thank Flag Link Sun Feb 6, 2011
You need all three credit reports in your possession. You can dispute any issues on your credit reports. The credit bureaus are required by law to investigate all disputes with in thirty of the complaint and respond with an updated credit report of their findings. You have to be persistent and consistent.
0 votes Thank Flag Link Sun Feb 6, 2011
Hi Beverly,

Yes, there are loan programs for the scenario that you described. However, in order to provide the most accurate information, you will need to provide a Home Mortgage Consultant with more specific details, (amount of income, rental history, asset statement, etc..). Please call or email me to discuss the process further. There is no charge for a pre-approval. Thank you.
0 votes Thank Flag Link Sun Feb 6, 2011
Not sure exactly what programs you are looking for, however if you haven't done so yet, consider visiting with any qualified loan officer(s), after reviewing your overall financials, a determination on qualification can be made, the type of loan, how much, how much down, etc.; if you don't yet qualify, he/she may offer great suggestions as to what needs to be done in order to qualify in the near future; he/she may also suggest any possible available programs that may suit your needs...
0 votes Thank Flag Link Sun Feb 6, 2011
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