Home Buying in Stockbridge>Question Details

Travakki, Home Buyer in Stockbridge, GA

MY CREDIT SCORE IS 598. CURRENTLY BEEN IN THE MILITARY FOR 13 YEARS AND WANT TO PURCHASE A HOME. IS IT IMPOSSIBLE FOR ME TO DO THIS WITH THIS SCORE?

Asked by Travakki, Stockbridge, GA Sat Jul 16, 2011

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Rodney Mason’s answer
A VA mortgage is going to be very difficult at that score. For VA financing, you are typically going to need at least a 620+ FICO.

For an FHA mortgage, most lenders require a 640+ credit score for the last 2-3 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. HUD does require that all open collection accounts must be paid in full if their cumulative balances exceed $1,000.

Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified you purchase, you can submit your request online at http://www.rodneymason.com.


Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
0 votes Thank Flag Link Sat Jul 14, 2012
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.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm


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
0 votes Thank Flag Link Wed Oct 24, 2012
Please call me if you want a link to repair your own credit (It's FREE)!
Max Wright w/Keller Williams Realty Atlanta Partners 770-912-5099
YouAreReadyToMove.com
0 votes Thank Flag Link Wed Oct 24, 2012
First and foremost, thank you for your military service!

In today's market loan guidelines have really tightened. I think your score will be your biggest "issue" but it's not so far off that we can't put you in touch with someone that can help. We have a great recommendation of someone you can talk to that can review your information and help guide you in the right direction. There are some things he can do to help guide you to increasing your credit score. Don't be fooled by these "credit restoration" companies that charge large amounts. They typically are a scam (not all, but some). If you are truly looking to buy something, I suggest you work hard to get that score up asap. This market is an incredible market and it's a wonderful time to buy a home. Call or email me and I'll give you more info on the loan officer I know that may can help. Thanks!

Melissa Stephens
The Stephens & Stephens Group
Better Homes and Gardens Real Estate Metro Brokers
404-843-2500 Office
678-776-1895 Cell
800-383-0430 Fax
http://www.StephensandStephens.net - Website

Comment on our blog: http://www.TheScoopinRealEstate.com
0 votes Thank Flag Link Fri Jul 29, 2011
Have a lender look at your complete credit history. There may be something in the records that you aren't aware of or an old collection etc. that needs to be paid off. Your lender can help you and can recommend some things that will get your score up and on your way to buying a home. THANK YOU FOR SERVING!!
0 votes Thank Flag Link Tue Jul 19, 2011
VA mortgages have no score requirement, but VA doesn't make mortgages, lenders make mortgages, and most require 600-640 qualifying scores (your middle, or median score), but there are lenders out there that will go lower. Since you are so close to 600, I'd work on getting "over the hump" so to speak.

Where did you get your scores from? http://www.myfico.com/ is arguably the best place to get your credit scores, as the scores will be closest to what a lender pulls, so if you didn't get your scores from a mortgage lender or that website, then they may not be very accurate..

With VA mortgages (and pretty much all mortgages) your last 12 months of credit history is very important. How has your past 12 months of credit history been? Any new late payments, collections, charge-offs, etc.?

https://www.annualcreditreport.com/cra/index.jsp is the best place to get your credit reports if you are looking to clean things up.
0 votes Thank Flag Link Sat Jul 16, 2011
When I was in the Navy waaaaaay back during Viet Nam, I joined the Navy Federal Credit Union.

Now don't tell me that YOU'RE not in the NAVY; I won't hold that against you: (yes, I'm a big person)

N.F.C.U. is open to all Services!

If I was you, I would talk to them first. You can also find them on line.

Oh, and I forgot to say, THANKS FOR SERVING!

Good luck and may God bless
0 votes Thank Flag Link Sat Jul 16, 2011
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