Question Details

Cbar29, Home Buyer in 18966

First time home buyers with credit issues

Asked by Cbar29, 18966 Sat Aug 25, 2012

My boyfriend and I are looking into purchasing a Townhouse by the end of 2013. My credit score ranges between a 580-602 and his is in the upper 700s. We will have 20k by May of 2013 and plan on putting it down on a house. From what I have read,due to my credit not being so great we would need a bigger down payment. I have been working on getting my score higher by paying debt back and having some accounts deleted that were inaccurate. My score was a 524, so this is very big for me to have it close to 600. What I'm nervous about is that my boyfriend does not make enough to put the home in just his name. Is there anyone out there who has had less then perfect credit but had a big down payment and was able to purchase a home?

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Keep working on your credit. Paying down high balances to 1/3 of their limit will give your scores a boost. Using and paying off credit accounts tends to help too. Don't close any accounts; this will lower your scores. So will paying off old collections. When a collection has been on your file for a while the impact tends to lessen over time. When you pay them off, it suddenly brings them back to the forefront and lowers your scores all over again. Once you are pre-approved with a lender, they may require some old collections to be addressed; this is the time to do it.
Congratulations on the work you've done, FHA will likely be your best source for a flexible loan with your improving scores. Talk to a mortgage lender after the first of the year to see what recommendations they have then. You'll have time to implement them before you've saved up all the down payment. Best of luck.
0 votes Thank Flag Link Sat Aug 25, 2012
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