Kmcelreath, Home Buyer in Salt Lake City, UT

How can I qualify for a home loan with a credit score of 550? I am so scared we will not get a house :( we are in Utah

Asked by Kmcelreath, Salt Lake City, UT Fri Mar 4, 2011

Help the community by answering this question:

Answers

11
Hi Kmcelreath,
You may be able to buy without bank qualifying using some form of Owner Financing from the seller. Credit and your f/closure will be less of an issue if you can put about 5-10% down and have some evidence of steady income. Look on Craigslist for real estate for sale By Owner with the keywords Rent to Own, or Owner Finance. Check out my blog for some different options. Hope this helps
0 votes Thank Flag Link Tue Jul 26, 2011
If you would like to sign up for my free credit repair webinar it will start you down the proper path to managing your credit file as well as your debt. You can access the Webinar at http://www.utahloansecrets.com.

In addition to the credit repair webinar, there are many others that will educate you on the home buying and lending process.
0 votes Thank Flag Link Thu Mar 31, 2011
A lender is going to assess their risk of not getting repaid based on your credit score. Obviously 550 is not good. This will increase the interest rate you will be able to get, so long term, it is best to try and get your score up as soon as possible and THEN, try to get a house.

:Pay off as much as possible.
They also look at length of credit, so don't close out your cards that you have had a while, and do not open any new ones. They also look at amount owed, vs amount available. (one easy way to increase score is to see if credit cards will increase your limit.) It is up to you NOT to use that extra credit!!
Also , all little items like utilties, cell phones, get those paid off.

Good luck to you. I just don't want you to pay higher interest than neccessary.

Lease option sounds like a good transition plan.
0 votes Thank Flag Link Mon Mar 28, 2011
There are options available immeadiatly such as lease options, and owner finance. You need to be carefull in this market when looking at these types of homes.

Often the only reason a seller is offering them is because they are upside down, and want to charge more than the home is worth. You also need to assure that the owner continues making the mortgage payments. There are a lot of people who think that they are buying a home only to have the owner get foreclosed on... Not fun. You can solve this issue with a quick check of the required payment amount and the use of an escrow account.

You should file a notarized notice of interest that block any title action without your approval as well. We can talk about the reasoning for this on the phone if you want.

If you have a little time to shop around I would reccomend that you talk to a credit consultant. I know a lady that used to work for Experian and has excellent tips on what you need to do to get you to a home-buyer credit score.
0 votes Thank Flag Link Tue Mar 22, 2011
You might need to go with some form of owner financing until you can get your credit up to par.
0 votes Thank Flag Link Thu Mar 17, 2011
Hi;

I have 2 homes that you can do a lease option with. And I have a good investor friend that has about 20 homes that are possible for a lease option.

Also, any Realtor that you like can help you find any lease option homes on the local MLS (multiple listing service).

As of moments ago, there are 114 homes offered through the MLS that will do a lease option.

Good luck and let me know if you want more information.

...Craig
0 votes Thank Flag Link Thu Mar 17, 2011
There are many options on the table for you. Don't be discouraged. Give me a call and I'll help you get on the right path with the right people. Where there's a will......there's a way, even if it takes work and discipline.
Kathy Moore
Buyer's Specialist
William Bustos Team
Keller Williams Realty
801-824-7244
http://www.williambustos.com
0 votes Thank Flag Link Fri Mar 4, 2011
Well there is good and then even better news for you. Although right now you would not be able to get into a home loan, with the right loan officer working on your file and giving you step by step instructions you should be able to get to the point were you are able to buy a home within a few months. It also depends what areas you are interested in purchasing a home, because there are some cities and counties that qualify for special financing programs and that includes a little lower credit score requirement as well. I have worked with buyers that have brought their credit score up 130 points in 3 months, this is not typical but it is possible. Call me, I would like to get you in contact with the best loan officer ever. He should be able to get you into a home with in a couple of months and you should still be able to take advantage of a fantastic interest rate.
Mike Wright
801-309-1960
RANLife Real Estate
mikew@ranlife.com
0 votes Thank Flag Link Fri Mar 4, 2011
Hi, you cannot buy right now but there are some options. Like lease with option to buy. have you think about it or know how it works? Where do you live right now? I know a building that can do something for you. Would you be able to meet me at my office in Layton?

let me know,
Yelitza Martinez
0 votes Thank Flag Link Fri Mar 4, 2011
The real answer to your question is it depends on if you have any money for a down payment - a good rule of thumb is 10%. I specialize in creative financing and it opens a whole world of new doors. Most Real Estate Agents do not understand the intricacies and have never been involved in a deal with creative financing. If you do not have any up front money, it can be difficult, but with some cash you will be able to purchase a home.
0 votes Thank Flag Link Fri Mar 4, 2011
The bad news is....probably not....right now. The good news is...you can probably get there. Contact me and I will get you with someone who can help you determine what the best course is for you!

Debbi Love
The Love Realty Group at Equity Real Estate
801-918-9005
debbi@saltlakehomefinders.com
0 votes Thank Flag Link Fri Mar 4, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer