You are definately on your way to becoming a homeowner, if you currently have a 600 credit score there will be a little work to do, however, getting you the points that are needed shouldn't be that difficult of a task. If you have a copy of your credit report, I'd be happy to review it with you. If you need a copy of your credit report you can get a free copy once a year at http://www.annualcreditreport.com
There are a couple of things to keep in mind:
1. Unless you received your credit score from a lender, the score is probably not accurate. There are a lot of monthly credit monitoring services available, however, I haven't seen one to date that reflected the scores that I pulled as a lender.
2. Since you have 10% to put down, it may be worthwhile to check all your options. If going FHA you for sure want to work with an experienced Real Estate Agent, who kknows how to use the FHA Approved condo list.
3. Don't give up. It's great that you've come here to get advice, but now it's time to take the next step and begin building your team of trusted advisors! To your success!
- Mortgage Banker
1- Get copies of your credit report (with scores) from the 3 bureaus. You should then check for accuracy.
2- Speak to a knowledgeable mortgage officer to discuss what you can do to increase your score.
3- Only look at FHA approved condos. You need around a 740 FICO to get PMI for a conventional mortgage. That is not going to happen.
We are happy to help you any time.
Feel free to give us a call at 312.242.1000.
Best of luck.
I suggest you instead look at the next six to twelve months as a time to get your credit house in order, raise your FICO and be a better prepared borrower.
You will have plenty of inventory to choose from, be prepared for a purchase, and save money every month with a lower interest rate.
In theory you fit FHA guidelines, and if you are a veteran you can inquire about using a VA loan, but you are right on the edge of qualifying with your credit score and that is not the place you want to be.
Expect a higher rate and more fees up front, versus improving your credit health, lowering your costs at closing and having a lower monthly payment.