Home Buying in 77302>Question Details

Kneves808, Home Buyer in Conroe, TX

Can we even get a loan? Are we looking for a home in the right price range?

Asked by Kneves808, Conroe, TX Sun Jan 15, 2012

We are looking to buy a home. Our credit scores are not that great, 605 each. We have no foreclosures, repos, or anything that bad on our credit history just bills from hospitals and other places that we never paid & about $38,000 worth of debt in student loans and credit cards. We are looking to purchase a foreclosure and will have about $30,000 /- to put down. Our joint income per year is about $68,000 and our monthly bill come up to about $3,000. We are looking for a home selling for about $100,000 or less. We are willing to complete work on the home slowly while living there. Will we be able to get a loan based on this information? Are we looking in the proper price range? Any guidance is appreciated.

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Your very close. You should really strive to get your credit up to 640 so you can go FHA and get a fantastic rate. I would first speak with a good mortgage broker or banker and talk in depth about your credit and what you can do to get a jump up to the 640 range. If your past debts are older they are not a huge factor in your credit any longer. Each month that goes by they are less of an issue.

Your main goal is to make sure you are doing what is necessary to improve your credit and until you fully understand your credit profile your scores will stay where they are. So find a lender who will take the time to get you where you need to be.

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
0 votes Thank Flag Link Wed Jan 18, 2012

Hard road: Dealing with a credit repair specialist to get your score above 640, so that you'll have a lot more options.
Harder road: Getting a mortgage with less than a 640 score.
Hardest road: Doing nothing and never getting what you want.

Best of luck and let me know if I can help.

Rob Spinosa
0 votes Thank Flag Link Sun Jan 15, 2012
Based on what you're saying, I feel you would qualify for a FHA loan but I would strongly recommend you speaking to a lender. If you have $38K in debt, have you thought about using a portion of that $30K to pay some of your debt off? Just a thought but a loan officer will be able to give you the best advice.

I wish you & your husband the best!

Tamika A. Goree
Halo Group Realty, LLC
Direct: 972.697.1178
Email: tgoree@haloagent.com
Web Reference: http://tgoree.haloagent.com
0 votes Thank Flag Link Sun Jan 15, 2012
Congratulations for saving $30,000 on a $68,000 annual income.

You will be hard pressed to qualify for a conventional loan with your credit score, HOWEVER, the good news is that you will qualify for an FHA loan even with your credit scores & still get a very good rate. You can do this with only 3.5% down, provided your debt-to-income ratio meets the guidelines. With $30,000 saved up, you could buy a new home and pay off most of your debt.

All the best,

Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct

We are a Direct Lender, Mortgage Bank where we originate, process, underwrite, fund, AND SERVICE our loans, in-house, with FHA (starting at a 580 score AND still only 3.5% down), FHA Streamline loans (NO minimum credit score, NO appraisal required) Go Green rehab loans, HomePath, Investor Friendly (10 financed properties), VA, USDA, Jumbo, Conventional, plus, we allow Escrow HoldBacks!
0 votes Thank Flag Link Sun Jan 15, 2012
Go to your local non profit housing group for credit counseling. The counselor will go over your credit report with you. They will tell you what you are doing wrong and what you should be doing. Listen to them and when your score is 640+ you can think of buying.
0 votes Thank Flag Link Sun Jan 15, 2012
Recommend for you speak direct with mortgage broker who will review your credit app's

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
0 votes Thank Flag Link Sun Jan 15, 2012
The short answer is YES! There are many programs that can assist you in purchasing a home. Credit score is one measure. I will tell you that a Credit score below 620 will present some challenges for you. I'd be delighted to assist you in reviewing your situation. Sincerely,
Henry J Daniels - Sr. Mortgage Banker & CMPSI Certified Mortgage Coach
"Educating you to make the right financial choices for your family today and tomorrow"

Direct/Text: (936) 228-1944
Fax: (832) 217-3033

Learn about me and connect at HenryJDaniels.com
Blog: WoodlandsMortgageBank.com
0 votes Thank Flag Link Sun Jan 15, 2012
Getting pre-qualified is ALWAYS the first step that I advise my buyers. Many factors are taken into consideration...i.e. how long ago did you acquire your scores, do you both have defaults, who has highest income, (at times, it is only necessary for one person to acquire the loan), etc. I have lenders that work wonders!!!
I also have a great lender that will work with you if your credit needs some repairing.
Don't hesitate to contact me with any questions, it would be my pleasure to assist you

Cheri Schwarcz
REALM Real Estate Professionals
0 votes Thank Flag Link Sun Jan 15, 2012
Have you talked to a mortgage banker? I would suggest you do that as your first step. I would also suggest you find one who is familiar with FHA 203K renovation loans. Your credit score is really not that bad and a good mortgage banker can help you to improve it in a relatively short time. They will know exactly what you need to do and how to do it. I would not recommend the big banks, it is much better, in my opinion, to deal with a smaller company that specializes in writing mortgages. If you don't know one, call a local realtor and ask to be referred. Realtors are happy to help as well in hopes you will use them as your buyers' agent when the time comes to buy.

Good Luck!
0 votes Thank Flag Link Sun Jan 15, 2012
There are some loan programs out there right now that may work for you, however with that credit score it would require a large down payment. And there are other factors that come into play that a lender would need to look at. So I would suggest getting with the lender first, since that would be required anyway before you could make an offer on a home. I have some I can recommend that can help you get started, just email me direct at jregil49@msn.com if you need some assistance in moving forward - thanks!
0 votes Thank Flag Link Sun Jan 15, 2012
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