Home Buying in Concord>Question Details

Purpleqb, Home Buyer in Clarkston, MI

I have a credit score of 609 and would like to get a home loan, is that possible?

Asked by Purpleqb, Clarkston, MI Thu May 17, 2012

I already got one thing removed from my credit and letters from two others on my report since they last ran it. Also, I would rather it be no money down, I'll take a little higher interest rate if I have to. Need to move quickly with three kids

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FHA really isn't credit score driven, it's the Banks and Lenders that set those score requirements. There are a few lenders that go down to 580 with FHA, I personally have closed on several homes with clients around and under 600. I recommend all my clients that have credit issues to check with The Lenders Network, check them out. If anyone can get you approved they can!
5 votes Thank Flag Link Tue Jul 16, 2013
Good afternoon Purpleqb,

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

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
1 vote Thank Flag Link Wed Jul 17, 2013
Hi there
Yes, it is possible to get a loan with a 609 credit score, but there are other important variables that you would need to have a lender look at. Give Lou Ellen Scott with Primary Residential a call and she can help explain all your options. You can reach her at 704.408.6703. She is VERY helpful and can help you to understand your 100% financing options as well. You should not have to take a higher rate to use these options. Feel free to call me directly at 704.562.2071 and I am happy to help!
Sincerely
Heather Hopkinson
RE/MAX Executive
Heather@HeatherHopkinson.com
1 vote Thank Flag Link Thu May 17, 2012
Good afternoon, PurpleQB:
To see if you might qualify, you should read this Trulia Blog Can I get a Home or Am I Stuck Renting? We are working with lenders who are finding financing for clients who meet this criteria, who have a steady job and 580 middle credit score. While there are options for down payment assistance and we can often get the Seller to pay your closing costs, it is a good idea to have at least 3.5% of the purchase price in savings for emergencies and reserves. If you have a full time agent with a Masters degree in Planning with Finance and over two decades of experience, working for you, you will likely do better in negotiations. I'd be pleased to provide that service. ... if you appreciate this answer, please give it a "thumbs up", or if this was the most helpful answer, please say thanks with a "best answer" click .
1 vote Thank Flag Link Thu May 17, 2012
That is really hard in todays market you will want to see if there is some special housing loans out there but your credit will probably have to be 640 to do it. good luck other wise look into rent to own contact for deed homes. http://nationwidecontractfordeeds.com/rent_to_own.html This site is free for every state for rent to owns-contract for deed-owner financing ect-buyers-sellers-landlords-management companies. good luck
0 votes Thank Flag Link Thu May 17, 2012
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