Home Buying in 08731>Question Details

Janine Nicole, Home Buyer in Lacey, NJ

My credit is currently a 523, horrible I know. I've just satisfied a pretty decent chuck of my debt in full. how can I buy a home?

Asked by Janine Nicole, Lacey, NJ Thu May 1, 2014

Help the community by answering this question:


Hi Janine,

Thank you for your question. There are usually 3 credit (FICO) scores and as a lender we look at the mid FICO score.

I'm a local lender and I'd be happy to discuss further. Please contact me via cell or emaail

Susan Paerels

NMLS #340466

Sr. Loan Officer

Maverick Funding

Forked River Office

Cell - 201-208-5699

Email - spaerels@maverickfunding.com
0 votes Thank Flag Link Sun Jul 20, 2014
There are loan programs out there that may accept lower credit scores. One of these is FHA. FHA's website states: "Minimum credit score requirements for FHA home loans depend on which FHA loan product the applicant needs. Generally speaking, to get maximum financing on typical new home purchases, applicants should have a credit score of 580 or better. Those with credit scores between 500 and 579 are, according the the FHA guidelines, 'limited to 90 percent LTV'." (Reference: http://www.fha.com/fha_article.cfm?id=200.)

Other options can include buying on a land contract, subject 2, rent to own or getting a co-signer. Meanwhile, save every penny you can to put down on a property. Large down payments can offset a poor credit rating to a degree.
0 votes Thank Flag Link Thu May 1, 2014
You should do this under the guidance of someone you can trust and who will not charge you a fee. Having said that; you have completed the first phase of rebuilding your credit. To make this easy for you I will give the phase/order of events/activities:
Phase 1: Identify and verify debts are yours and balance owed
Phase 2: Develop a strategy based on goals and timeline on disputing debts, paying in full verses settling debts
Phase3: As part of the negotiating strategy, ask if the will send you a letter accepting payment “as agreed upon”, if not, ensure you get a copy receipt from each creditor indicating account is paid in full.
Phase 4: After receiving all letters, construct a letter to all three credit bureaus (send me an email for a sample letter and their addresses), indicating all these accounts have been satisfied.
Phase 5: Start re-establishing credit—you mad have to start with a secure credit card—ask me later about it
Phase 6: Maintain all financial debt obligations and keep balances below 33% of all credit limits.
If you need additional help call me.

Roy Bhiro
718-390-7200 Office
609-351-3619 Cell
rbhiro@primelending.com Email
http://www.royhomeloans.com Web
0 votes Thank Flag Link Thu May 1, 2014
Not bad advice Roy.
Flag Thu May 1, 2014
Thanks for the call, let's connect when you are ready.
Flag Thu May 1, 2014
Thank you Roy!

I have an unsecured card already that I've kept in good standing and I also financed a vehicle 6 months ago that I have been paying on time. ive satisfied about 4300 and i still have about 15,700 in old collections. How much of this would i have to satisfy before my score increases to the point where I can buy a home?
Flag Thu May 1, 2014
I have a lender that can review your profile and tell you exactly what to fix , they will help to get you in a home of your own quickly. Do you have down payment money? And what State and Area do you want to buy in ?
0 votes Thank Flag Link Thu May 1, 2014
I'm looking to buy in new jersey some where in the ocean county area. I will have about 6k to put down, not looking to spend more than 80k on my home
Flag Thu May 1, 2014
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