Home Buying in Metairie>Question Details

Meilyn, Home Buyer in Metairie, LA

I HAVE MY CREDIT SCORE ON 601 AND I PAY OFF ALL MY OLD COLLECTIONS DUE , I HAVE MORE IN 2 YEARS IN MY JOBS , I CAN APLLY FOR FHA LOAN ????? THANK U

Asked by Meilyn, Metairie, LA Thu Mar 7, 2013

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Possibly. Lenders will look at more than just your credit score when considering you for a mortgage. If you have excessive collections or recent late payments then you may not qualify regardless of your credit score. There are still some lenders that require just a 580 score for an FHA loan. I would recommend a site like The Lenders Network to get referred to a few lenders that are a good fit for your situation. They're partnered with several reputable lenders that can work with lower scores.
1 vote Thank Flag Link Sun Jun 29, 2014
It seems that your scores in your range should work. Lenders like myself can go as low as 580 when it comes to credit scores. Of course, your other finances will need to be in place as well including your income, debt, assets, employment, expenses, etc. The best thing for you to do is to speak with a knowledgeable lender like myself to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!

Brian Nguyen
Sr. Mortgage Banker
NMLS # 659743
Phone: 949.667.2887
brian.nguyen@nafinc.com
0 votes Thank Flag Link Tue May 13, 2014
Good afternoon Meilyn,

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

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0 votes Thank Flag Link Wed Jul 17, 2013
Boost your score. You will have a very hard time qualifying for a loan where you sit right now.
0 votes Thank Flag Link Wed Jul 17, 2013
Ugh, FHA has fixed rates and reasonable down payments, likely 3.5%. Rates are still historically low but have been on the uptick in in the last couple of weeks. A better rate can be obtained in a few months by proactively working on your credit. A good realtor, good lender and informed buyer make the perfect transaction.
0 votes Thank Flag Link Sun Mar 10, 2013
Please don't listen to that last response. You can get a loan with a mid score of 601, though the interest rate will be higher and the MIP may be higher which is why, she should clean up her credit first. Not sit around and wait until it gets better, that's just not good advice. Some things are not removed automatically from your credit and you have to WORK to get them off.
0 votes Thank Flag Link Sun Mar 10, 2013
predatory lenders offer home loans to suckers! You will get nailed on interest rate, you will be forced to put a lot more down, and you are being set up for failure. Whats in it for them??? a commission check! Tens of thousands of americans lost their homes because they were sucked it to predatory lenders! BEWARE
0 votes Thank Flag Link Sun Mar 10, 2013
Ohhh gawd! no, you need at least a 640, good stable income. You have bad credit, you have previous collections... take a deep breath, and wait... your scores will increase
0 votes Thank Flag Link Sun Mar 10, 2013
Yes, you can apply for an FHA loan, feel free to call me if you'd like so I can put you in touch with a lender to walk you through the process. There are other factors such as income and debt that has to be reviewed by any lender before you can be pre approved for a loan. Do you have a certain house in mind or are your trying to refinance? You can access my information by clicking on my name or you can e-mail me directly nolaappraisals@gmail.com
0 votes Thank Flag Link Thu Mar 7, 2013
Yes! We are able to finance FHA loans (3.5% down) with middle credit scores as low as 580. Feel free to apply online at http://www.rhlapps.com/kjones or give me a call.

K.C. Jones
RH Lending
214-432-0486
kjones@rhlending.com
0 votes Thank Flag Link Thu Mar 7, 2013
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