Is the low score due to late payments? Over-utilization of credit in comparison to your allowable line? Major derogatory marks such as a Foreclosure, Bankruptcy, or Short Sale? ...these are all very important pieces of information for a mortgage professional, such as myself, to understand.
The thing is not many loan officers want to work with individuals with poor credit simply because it takes a little more time in their part. I, however, enjoy the challenge. Please contact me at your earliest convenience so we can discuss your scenario in greater depth. If I can't qualify you for a loan at least we've taken the first steps to become eligible. There are many ways to increase score without resorting to a credit repair company.
Paul F. Marzolla
Sr. Mortgage Consultant
It depends on what you mean by "bad credit". There are many programs out there that allow lenders to qualify people with bad credit, but there are waiting periods that must you must satisfy after a serious derogatory event (such as foreclosure, bankruptcy, short sale, etc.). The best way to proceed would be to contact a Loan Originator and have them tell you exactly what can and cannot be done, based on your unique credit situation. If you'd like to have a conversation, feel free to reach out to me at:
Ever since the financial crisis, you need all 3 in order to obtain a mortgage...
Stable income that is high enough to support the new house payment as well as your current debts.
A satisfactory credit history, especially in the last 12 months, with a minimal amount of late payments and collections. Credit scores and how you manage your credit is the best predictor lenders have to go by to decide if they are safe lending you large sums of money. How you've managed your credit in the past indicates your willingness to pay financial obligations as promised.
Money to cover your down payment, closing costs, and taxes and insurance.
If your credit is truly bad then you have no business buying a home unless you can pay cash for it. Get your finances in order before you take this huge step. Speak to a loan officer to see where you stand today and what you will need to do to become approved in the future. From there, you can go onto http://www.hud.gov to seek a HUD-approved housing counselor in your area who can assist you in executing your plan.
I hope this helps!
Tony Grech | Mortgage Loan Originator | NMLS 977416
PMAC Lending Services, Inc.
24901 Northwestern Highway Suite 407
Southfield, MI 48075
Direct (248) 728-0078 | Fax (248) 595-7130 | Cell (313) 622-7383