Home Buying in 55119>Question Details

sweet_shelli, Home Buyer in Saint Paul, MN

My Ex needs to buy a house and has a credit score of only 570. Can anyone help or advise as to whom I may contact?

Asked by sweet_shelli, Saint Paul, MN Thu Mar 28, 2013

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Russ Douville’s answer
570 is tough in today's market. As others have mentioned, Rapid Rescore is a viable option for improving the score if there are quick changes that can be made. If improving your ex's score needs to be a more long term project I suggest checking out http://www.hocmn.org and meeting with a home ownership/credit counselor in your area. There are plenty of no-cost credit counselors out there, but these folks are free AND specialize in getting people into home ownership through both credit repair and mortgage options.
0 votes Thank Flag Link Wed Apr 10, 2013
570 is a challenge for anyone trying to acquire financing.

The lenders in this pool are few and far between...

Read the fine print on the costs involved.

Equity position in the property will be a large factor...

Have you considered "Hard Money"?
0 votes Thank Flag Link Fri Apr 5, 2013
Hi, Shelli!
Wow, 570 is a tough one on the open traditional mortgage market.

I would suggest talking to a couple of different lenders, especially mortgage brokers, who will be able to explore some "out of the box" options to look at. It's not going to be easy and you're going to have to put in the work it takes to do your homework and gather the information that you need to find something.

You will also need to be VERY candid about why this happened and what you've been doing since to rectify it. I know it seems intrusive, but that's just how it works.

Good luck!!!
0 votes Thank Flag Link Fri Apr 5, 2013
Hmmm,

Well that depends on why the score is currently at 570.

Like Chris mentioned, there may be an option to use a Rapid-Rescore to get his score up very quickly. That would work if there are some specific items on his credit that could be verified and updated. For instance, if he is just carrying too much debt then it is possible to strategically pay down balances and get the score updated in a matter of a week or so. I have had scores increase more than 100 points using this within the last few months.

BUT, it all depends on what he has on his credit. If he has multiple collections and missed payments he is in a much tougher situation.

Oh, and by the way. As a wholesale mortgage broker I work with FHA lenders that will allow the score to be as low as 600.

Best of luck,

Jerry
0 votes Thank Flag Link Thu Apr 4, 2013
Hey!

I am still trying to get my loan officer Lisa on here, but give her a call 612-990-2271 or just contact me directly and we can talk more about advice!

Basically, I have yet to find a lender who will do FHA under 640. Besides that; people with low scores tend to not have the basic 3 credit requirements. THE GOOD NEWS is that it really does not take as long as you think to get up to 640. My LO Lisa is working with someone that has ZERO CREDIT and her company will finance them in 6 months (most lenders tell you a year).

She uses a software called rapid-rescore, which analyzes your credit report and will tell you exactly what to do to raise the scores. What I like the most is it also will tell you how many points you can expect to go up. Lisa has credit repair people for much worse situations.

It may not be what your ex wants to hear, but if they want to buy this needs to get done. The sooner you contact Lisa the faster we can get him qualified. I love working Zip 55119 so I think it will work out great!

Just tell Lisa Chris Block sent you:)

Realtor North/NE Suburbs
651-307-7663
chrisblock@thebridgerealty.com
0 votes Thank Flag Link Fri Mar 29, 2013
Hi Chris,

I hope all is well.

I DON'T write this trying to come between you and your lender Lisa. You clearly have a great working relationship.

But I did want to let you know that there are FHA lenders that will go down to as low as 600 for the credit score now. I work with more than 30 lenders so I have a good insight on what is on the outskirts of what is being allowed right now.

NOW, they have to pay a premium for having that lower score as you'd expect. They will have to add about an extra .50% to their interest rate for that 600 credit score.

Just thought you'd like to know.

Take care,

Jerry
Flag Thu Apr 4, 2013
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