Dear Autumn,

You might be able to 'qualify' for a loan with a low credit score of 581 but you are going to pay high interest rates for that money. Why not set yourself up for success long term. If you begin with credit repair in order to work to remove any late pays, slow pays, negative items on your credit reports you will get a better overall credit rating. Then I can work with you to provide some credit score boosting strategies so that when you go back to your favorite mortgage broker, you will not only 'qualify' for mortgage but you will qualify for a good mortgage with a very low interest rate. Imagine how much easier life would be with better credit? The process takes 4-6 months which is enough time for you to impliment good saving and spending habits and the fee is very reasonable a flat fee of $399.00 (with a money back policy). Good luck!

If you are a first time buyer Pennsylvania Housing Finance Agency (PHFA) should work. They work with FHA, VA and Conventional loans. The PHFA / FHA has no minimum credit score. Many local lenders work with PHFA.

Try to fix your credit score and focus less on getting in debt and instead focus on staying out of it. Once you take the steps to get out of debt and get your credit score higher, I think you will still find good bargains (homes) on the market. Save 20% to place as a down payment and live relatively debt free or at least within your means. That is advice I would give a friend. Hope that helps.

Find a broker that works with First Guarantee Mortgage or contact the Account Executive below and ask her which broker in the area works with her. This will be an FHA loan. You will need to write letters of explanation as to why your score is low. The mid score can go down to 580 for 3.5% down and down to 530 with 25% down.

Katie McLeod

Account Executive

First Guaranty Mortgage Corporation

301 682 8228 x225 Office



888.295.7899 Toll Free

Autumn,

I wish I had great news for you and say that it's no problem, we'll find someone to make the loan, but it's not that easy and I would never mislead anyone into thinking it was.

Lenders will take the middle score between all 3 reporting agencies and use that score to determine if you qualify or not. If your score is that, I offer a few sugestions to bring it up as I have been told several times that a score of 680 is needed here in NC.

A lender will give you the best advise on how to raise your score and maybe have some programs to help you, but first and foremost, start by ensuring you pay all your debit on time. If it's past bills that;s bringing you down, contact the agencies and see if you can negotiate a pay plan that will work in your budget. If it's lack of credit that's hurting you start establishing a good record by enrolling in a prepaid credit card and use it once a month to purchase $10.00 in gas or some other small item, pay it completely when the bill comes in and do it again. Bank of America has a great card for that and only requires $300 to get the card going. Once you start getting a positive credit flow you'll be on your way to owning your own home, but please, contact a lender and see what they say as well

Daniele Summerfeld
Wilkinson & Associates

Are you a Veteran? Have you spoken with a loan officer about an FHA loan? If I can refer someone to you, please let me know!