I suggest working with a creditor/banking institution to assist with getting your score up to where it needs to be to move forward with buying a home.
If you need anymore assistance, feel free to contact me!
Many of the things mentioned by Mr. Mason can be covered in a one year home warranty and other things could be covered by your insurance. Here we have something called a step up down payment that could assist with the downpayment we also have a down payment assistance program that could help to possibly save that $700 for savings. The absolute best thing to do is find a great team of people in the local area to assist you.
Laportia S. Paulk http://www.laportiapaulk.com
~Choosing the Right Realtor Really DOES make a difference~
You would also be responsible for all repairs of the home. Depending on the age/condition of the home, here are some repairs to anticipate:
- New roof
- Repair/replace HVAC unit
- Repair plumbing
- Repair electrical
- Repair/replace appliances
- Exterior painting
Untill you are fully prepared and capable of taking on these expenses, renting may still be your better option.
For an FHA mortgage, most lenders require a 640+ credit score for the last 3-4 years now.
Prospect Mortgage is one of the few direct lenders to offer an FHA 580-639 FICO loan program. Credit profile is a major factor in a mortgage approval. Generally, there should be no late payments, new collections accounts/charge-offs/liens/judgments in the last 12 months. It is required that all open collection accounts must be paid in full if their cumulative balances exceed $1,000.
The 3.5% minimum down payment can be from the borrowers own funds or it can be gifted from a family member. Two months of reserves for the PITI (Principal + Interest + Taxes + Insurance) payment + HOA Dues will be required. This must be from the borrower’s own funds and not a gift. FHA loans will allow a seller contribution toward closing costs/pre-paids of up to 6% of the sales price.
To begin improving your credit score, you would need to contact each of your creditors directly to see what your options are. Paying off derogatory debt will help improve your credit score in the long run, but not immediately.
With collection accounts, most of the damage is done when they are initially placed on your credit report. Some collection companies are now reporting you are late each month the debt goes unpaid. This continues to drag on many people’s credit scores each month until the debt is paid in full. Until you do that, your credit score has little chance of improving.
In exchange for paying the collection account in full, you can try to negotiate to have them completely remove the derogatory item once the payment is received. Some collection agencies will do this, while others will not. You will just have to ask each one and see. If they will not remove it, just having it paid and closed will help in the long run.
All liens and judgments will also need to be paid in full. These impact the title position of a mortgage so they must be satisfied.
It is very important that you be VERY careful in disputing accounts. You cannot dispute accounts which you know to be accurate. For a mortgage, you cannot have an active and open account that has a disputed status. Fannie Mae/Freddie Mac/HUD all have very specific guidelines to be following when a borrower has an account in a disputed status. In some cases, it could cause you not to be able to qualify.
To build positive credit, you typically need to have 2-3 trade lines reporting for 12-24 months. There should be no late payments or other derogatory items reported in the last 12-24 months. On your Revolving credit accounts, your outstanding balance on your monthly statement should not exceed 30% of the credit limit.
If you are looking to purchase a property, working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your mortgage options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203(k) Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
Please give me a call at 256-701-4266. I would really love to show you your options and let you know what is out there for you.
Check out my webpage to learn more about me at http://www.laportiapaulk.com AND visit my FB page https://www.facebook.com/ExitRealtyOfTheValleyMadisonLaporti
I wish you well on your search. You need a really good agent negotiating the best terms and a really good loan officer that doesn't just give you answers but explains them to you as well.