Home Buying in 30506>Question Details

coryyarboro, Renter in Gainesville, GA

Can I buy a short sale home with poor credit (under 600)?

Asked by coryyarboro, Gainesville, GA Sat Sep 15, 2012

There is a home in the perfect area with the right amount of rooms and space for my family and I (we have 2 kids and one on the way) My husband and I both have lower credit scores but the house is a short sale for 59,000 is there any way we can purchase this home?

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If you have the income ability to afford the payments, your credit and credit history pass muster with your Lender's guidelines, and you have the patience of Job, you likely can. Please let me know if we may help further. Good Luck!

Michael Hammond




1 vote Thank Flag Link Sat Sep 15, 2012
There are lenders who provide lending for those who have scores of 500+ utilizing FHA
Here''s a couple that have it. Wells Fargo and Primary Residential Funding

Need to go over the reasons for the low credit score first with the lender.

Good luck
0 votes Thank Flag Link Sun Sep 16, 2012
Hello Cory,

If you have 40 to 50% down, you can buy any house (with the help of a hard money lender).
Ask your local agents for one, if the downpayment, points and closing fees funds the hard money lenders charge are there (available) to buy.

If not, then a longer road might be ahead - with fixing your credit, which could take up to 6 months -
if you work with a reputable local mortgage pro, referral based credit repair firm, or if you fix your credit yourself. There are great books written on the subject - one of them is Debt Cures by Kevin Trudeau. Paying off the credit card debt to 30% of available limit is one way to start.
Don't open new credit lines more often than every 90 days window - is another way. The more available credit you have - the better it is for you. Inquire at your local bank branches for secured credit cards that get reported to the credit reporting agencies. Have at least 4 established lines of credit 24 months long. No quick fix, yet - pretty soon you'll be 100% ready to roll.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
0 votes Thank Flag Link Sat Sep 15, 2012
For an FHA mortgage, most lenders require a 640+ credit score for the last 2-3 years now. Prospect Mortgage is one of the few direct lenders to offer an FHA 580-639 FICO loan program. Credit profile is a major factor in a mortgage approval. Generally, there should be no late payments, new collections accounts/charge-offs/liens/judgments in the last 12 months. It is required that all open collection accounts must be paid in full if their cumulative balances exceed $1,000.

The 3.5% down payment can be from the borrowers own funds or it can be gifted from a family member. Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified you purchase, you can submit your request online at http://www.rodneymason.com.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
0 votes Thank Flag Link Sat Sep 15, 2012
cash would work. Other than that, talk with a local lender and see if there is any way they can or will help you. Maybe a co-signer?
0 votes Thank Flag Link Sat Sep 15, 2012
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