Home Buying in Tucson>Question Details

Searching4Ho…, Home Buyer in Houston, TX

Have a mid score of about 550 but little debt (car loan for around 8k). Is it possible to get a loan to buy a home? I make 42k/year.

Asked by Searching4Home, Houston, TX Tue May 14, 2013

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Scores needed for an FHA loan are low 600's. But it's best to work with a lender because it might be an easy fix to get the credit scores you need. As well with enough money down or acceptable gift loan you may be closer to qualifying than you think. Nova Home Loans has an excellent credit repair service to help get you from the mid 500's to home loan ready. They'll work with you as long as it takes to get your credit up, which may be a short waiting period of only a few months.
Call me and I'll work with you and your lender to get you approved and in a new home.
Where there's a will there's a way!
520-358-3308 cell
BaseLWorldRealtor.com
0 votes Thank Flag Link Tue May 14, 2013
A good independent mortgage lender will be able to set you up for what you need to increase your credit score in very short order. Once you have that started, start talking to Realtors to get one that is a good fit for you and your area. If you need help there, let me know.
0 votes Thank Flag Link Tue May 14, 2013
Hello,

Contact Tim Lander
at (800) 375-8096 ext 0112
He is a Mortgage Broker and he is the Best!

Let him know I sent you!

Have a GREAT day!
0 votes Thank Flag Link Tue May 14, 2013
I would advise two things:1). Talk to an independent mortgage broker that is local to you; 2). go under their credit improvement program to get you to 640 minimum. That in the long run will save a lot of time, hassle, and thousands of dollars. Good Luck
0 votes Thank Flag Link Tue May 14, 2013
Great question, and there are other factors involved. Your best bet is to talk to with a local lender here in Tucson, I can recommend a couple if you like. Regardless whom, review your FICO scores, see what you qualify for, and if not the amount you need, what you can work on so home ownership can be a goal in your near future. There really are no wrong answers, there should be no cost nor obligation for you to get pre-approved. In today's market it should be any buyers 1st step.

Best of luck.

Spirit


Spirit Messingham, PLLC
3rd Generation Full-Time Realtor®
Tierra Antigua Realty
Direct (520) 471-6900
Fax (866) 365-5208
SpiritRealty@cox.net
http://www.TierraAntigua.com
0 votes Thank Flag Link Tue May 14, 2013
To qualify for a traditional loan, you are going to need a minimum credit score in the 620 - 640 range. USDA loans with a credit score of less than 580 are denied if you have been late on any payments. (Reference: http://www.rurdev.usda.gov/SupportDocuments/CA-SFH-GRHUnderw…)

There are other loan programs out there that may accept less. One of these is FHA. FHA's website states: "Minimum credit score requirements for FHA home loans depend on which FHA loan product the applicant needs. Generally speaking, to get maximum financing on typical new home purchases, applicants should have a credit score of 580 or better. Those with credit scores between 500 and 579 are, according the the FHA guidelines, 'limited to 90 percent LTV'." (Reference: http://www.fha.com/fha_article.cfm?id=200.)
0 votes Thank Flag Link Tue May 14, 2013
Good afternoon,

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 May 14, 2013
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