Home Buying in Penfield>Question Details

Ackdkj, Home Buyer in Penfield, NY

As we continue to pay 750.00 per month in rent we want to know if it is impossible to get approved for a mortgage with a credit score of 600? Also,

Asked by Ackdkj, Penfield, NY Tue Jan 19, 2010

where do we start?

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5
Molly Hay,SFR,CDPE & CNHS’s answer
You aren't to far away from a 620 which is what you could get an state funded FHA loan for. I wound find a local lender in your area to help you get your scores up and put you on the right path. Have that lender recommend a free home buying class as well!! gOOD Luck!
0 votes Thank Flag Link Fri Oct 21, 2011
I applaud your establishing a goal of home ownership. I agree that your credit score will in all likelihood prevent you at this point from obtaining a mortgage. I would recommend that you discuss your situation with a mortgage counsultant. They can identify for you what to work on first to get your score up to at least 620. That seems to be the majic number to qualify for a loan. In the interim....be sure to pay your debts on time, and if possible, do not accumulate any more debt.

Good luck in your quest for home ownership!
0 votes Thank Flag Link Fri Oct 21, 2011
Currently there are only a few local banks out there that will accept a credit score above a 580. Most banks are accepting a minimum credit score of 620. Check out alot of offers that the banks are offering NOT mortgage brokerages. Right now, interest rates are 3.875% and now is the opportunity to get off the fence and start looking to buy! With the bank offers out there, you can purchase a house for just $1,000 down and no closing costs. Also banks can also increase the interest rate to 4.125% and give the buyer money at closing if they are short money to close. Even at 4.125%, its still a great rate!

If you had a past Bankruptcy, you can purchase a home 24 months after discharge and no late payments or collections for a year! If you had a home (foreclosure) included in the BK , then you need to wait 3 years after discharge and no late payments or collections!
0 votes Thank Flag Link Fri Oct 21, 2011
I think that you are doing the right thing ... you need to look at if it makes sense to continue down the road of paying someone elses mortgage or not. I agree that 600 is a bit low ... but depending on when that report was taken you may have a different score now.

I would recommend that you contact a bank and have them run your numbers again. I have several that I work with and am actually holding a seminar next week on Tuesday at the Webster Community Center from 6 - 7 P.M. where I'll have a Banker, Attorney, and Myself there to speak about our roles throughout the process.

If you're interested you do need to pre-register -- the seminar is free!

See link below for the registration link. (Anyone else reading this that might be interested in attending is welcome too!)

Regards,

Michael Walker
0 votes Thank Flag Link Wed Jan 20, 2010
Although FHA guidelines do not dictate a minimum credit score requirement, most lenders have instituted a 620 minimum score requirement.

I would start with speaking to your bank or credit union to see if you meet their requirements. If not, the loan officer should be able to give you some tips on how to get your scores into the range they need to be.

A 600 credit score is considered really low these days, and I'd recommend you get your finances in order and that you have a good handle on your credit before taking the jump into homeownership.


Good luck!
Tony
0 votes Thank Flag Link Tue Jan 19, 2010
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