If you are going to need a co-signer for the loan, you need to act very quickly. FHA has eliminated accepting non-resident co-signers beginning January 1, 2010.

Also, I would be VERY surprised if any of the big banks are going to allow a score as low as 588. Currently almost all lenders require at least a 620. B est advice is to get your financing lined up first, before you fall inlove with a house.
And, if you do find financing with that low score you should be prepared to pay a higher rate for the loan.

Hi Mathew. You may be able to qualify with these scores. As long as you have not had any late payments in the last year, medical bills excluded. If you would like you can contact me at doug@PMBLending.com I would be happy to assist you and look into this further. Thanks.

Doug Brown
Pinnacle Mortgage Bankers
Sr. Loan Consultant.

Hi Matthew, most people answered your questions already, but I work with a couple really great mortgage brokers who can answer your questions, which usually lead to more questions better answered by them. Go to my site and look under resources and their contact info is listed. http://www.traceyhicks.com

good luck!

Tracey Hicks
Dwell Realty
503.317.5834

Matthew,

You are very close to qualifying for an FHA as long as you do not have more than 2 payments that are late, (past 30 days).

Your wife's score may pass since sometimes FHA will accept a lower score and even no score at all. If you are the primary borrower and need her income to qualify, give it a try.

Go to a large national bank like Chase, Bank of America or Flagstar.

Hope this helps!

Matthew,

If your income alone won't qualify you for the loan then you will need to work on getting your wife's credit score above 620 or higher - or have someone co-sign. Yes, you can still apply for an FHA loan.

If you can qualify on your income alone then I believe, but ask your Tax Professional, that if you are first time home buyer you can apply for the First Time Home Buyers Tax Credit that was just extended to April 30, 2010.

If you can qualify alone, then you can buy alone, and add your wife to the deed. She is still the co owner with you, and by being on the deed, she has the rights to the property if you pass away. Having her on the loan, only obligates her to the debt.

But if you need her income to qualify for the loan, then she will need to get her credit up just a little. Its not that far from the FHA minimum requirement. I think that is 600-620. But it is true that you can combine 2 scores or have a cosigner for an FHA loan.

Hi Matthew,
You need a good lender to help you with your question. The Real Estate Broker works together with your lender, but your lender is the person that helps you with your loan issues. This type of information is considered "private" as you can imagine. Once you get approved and have a letter stating that, then your Real Estate Broker helps you find the home.

The lending guidelines have changed dramatically and continue to change today. You can find a lender by going to the place you bank, a credit union, or asking your Real Estate Broker for referrals. Then I would find someone you feel you can trust as its a very important part of buying your home, and someone inexperienced or not trustworthy will make the transaction miserable for you and everyone else involved.

They will be able to look at your financial picture and give you advice on how to repair credit, what you can do today to improve it over time, or how/if you can purchase today.
Best to you and your wife on purchasing a home.