Home Buying in Philadelphia>Question Details

John Beamon, Home Buyer in Philadelphia, PA

Bad credit trying to get a mortgage

Asked by John Beamon, Philadelphia, PA Tue Aug 13, 2013

I have found the house I am looking for. There is a grant available for the down payment and closing cost. I an a first time buyer and gross 30k/yr. My middle score is 586. Where can I find a Fha lender to work with me? All the companies I talked to want at least 620.

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Answers

12
John there are a few lenders still out there that can do FHA loans with scores down to a 580. Not easy to find but I know of a few that have gotten a ton of my clients approved and closed on a loan with under 600 scores. Check out our website or email me anytime.
0 votes Thank Flag Link Sun Sep 1, 2013
John, Phillip has provided some solid insight and beat me to what I was going to suggest. NACA is a great tool/option for people facing some credit challenges. It's a very unique process and be sure to team with a Realtor who is familiar with how to get the deal closed using NACA. If you'd like to discuss this further, I'd be more than happy to provide some insight. To date, I have closed many NACA transactions. Best of luck!!

Chris Nelson
RE/MAX SERVICES
Philadelphia Magazine Five Star Award Winner 2012
National REO Broker Association (NRBA) Member
REOMAC Member
REOBroker.com Member
794 Penllyn Pike, Ste. 120
Blue Bell, Pa 19422
215.641.2500 Main
215.641.2542 Fax
484.576.7430 Cell*
0 votes Thank Flag Link Sun Aug 18, 2013
John-

I would consult a mortgage broker who can run deals through many different banks. An FHA loan will be tough at that score, but there may be things you can do to raise you score rather quickly. I am a licensed realtor and have relationships with different brokers. There are also still several sub-prime lenders out there. I hope this helped.
0 votes Thank Flag Link Sun Aug 18, 2013
Hi John, sometimes you can get approved with lower than 620 if you have compensating factors (decent amount of assets, low debt ratio, etc). PHFA allows you to have lower scores. However, if you want to raise your score to 620-640 range I'd get with a loan officer to go over high you can increase it as soon as possible. Call or email if you need me.

King Regards,

Chad E Bahnsen

cbahnsen@mortgagenetwork.com
Visit My New Website: http://www.chadthemortgageman.com
Chad E. Bahnsen- Mortgage Originator, NMLS# 127719
Mortgage Network, Inc.- Corporate NMLS# 2668
14 E. Stratford Ave Ste 3C
Lansdowne, PA 19050
Cell: 610-457-7262
Office: 610 622-2212
Fax: 1-866-590-3806
Licensed by the Pennsylvania Department of Banking and Securities
0 votes Thank Flag Link Thu Aug 15, 2013
Try going to http://WWW.NACA.com and call me at 215-725-5700 X49 and this is a true program the loans go though Bank of America.

Philip J. Cunningham Sr.
V.I.P. Realty Corporation
7942 Bustleton Ave
Philadelphia, PA 19152
215-725-5700X49 cell 267-934-1971
philcunningham2004@yahoo.com
Web Reference: http://www.GreatPaRE.com
0 votes Thank Flag Link Wed Aug 14, 2013
Hello John,

I have a lender that will go down to that score but I think they will have an issue with you not bringing your own down payment.

Regards,
Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010 & 2012
NMLS ID 143960
0 votes Thank Flag Link Wed Aug 14, 2013
Hi John,

As you discovered, lenders want a higher credit score. Be careful of anyone offering credit repair, rent to own etc. Remember - if its too good to be true ....its not true. I would suggest that you start with looking at all 3 of your credit report for errors that you can correct. These reports are Free at annualcreditreport.com. You can repair your own credit. Dave Ramsey has good suggestions on his web site, books and TV and radio show.
Good Luck and I hope this was helpful.

Regards,

Sue Breault
Realtor
Keller Williams Real Estate
sbreault415@yahoo.com
215-205-9643
0 votes Thank Flag Link Wed Aug 14, 2013
Cash is king. Buy a house for cash. Then all those credit issues no longer material
0 votes Thank Flag Link Tue Aug 13, 2013
Hi John,

No quick fixes. You should contact a mortgage professional, most of whom have a working relationship with a credit repair specialist.

You should also look into programs available through http://www.NACA.com.

If you need a referral to a mortgage broker, please call me.

Have a great day. Looking forward to speaking with you soon.

All the best,
Larry Lichtman, CNE
Realtor, Property Manager
Your Real Estate Resource For Life
CELL/Text: (267) 254-7994

Liberty Real Estate Associates
924 Arch Street
Philadelphia, PA 19107
Office: (215) 625-4725
0 votes Thank Flag Link Tue Aug 13, 2013
Good afternoon John,

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

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes Thank Flag Link Tue Aug 13, 2013
John,

I may have the perfect solution that will help you get financing. Send me an email or give me a call and I will give you some details. Best of luck!!

Chris Nelson
RE/MAX SERVICES
National REO Broker Association (NRBA) Member
REOMAC Member
REOBroker.com Member
Certified Distressed Property Expert (CDPE)
Platinum Equator & RES.NET Certified
794 Penllyn Pike, Ste. 120
Blue Bell, Pa 19422
215.641.2500 Main
215.641.2542 Fax
484.576.7430 Cell*
0 votes Thank Flag Link Tue Aug 13, 2013
Hey I think I know of a person that may be able to help you! Are you currently working with a realtor? If not, contact me and let's see what we can do
0 votes Thank Flag Link Tue Aug 13, 2013
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