At this time I have a 600-619 solution for you.
If the following apply to you, feel free to contact me via my profile or my website:
The items that follow are overlays for this credit score tier on top of the normal guidelines
Single Family, Condo, PUD (no multi-family properties)
Two months reserves in cash** (bank accounts ideally)
No declining income
All deferred student loans count in the debt ratio
** If using non-cash reserves, those must be liquidated to show as "cash-on-hand".
I can be reached via my website or through my profile.
Sr. Mortgage Banker
NMLS # 659743
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.
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.
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.
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Buying a home only increases your expenses, and borrowing money to do it increases your liability a thousand fold versus rent. Good luck,
I know Pacific Union Financial and First Mortgage Corporation will take scores below 600 but I'm not sure if they lend in your area.
You should contact a local mortgage broker.