My credit score is about 543 and husband is worse. Bills are paid now but we have had trouble with them in
the past. We have a foreclosure about 5 years ago and minor things against us since. We have very little debt now, no credit cards, and our car will be paid off in a few months. When pulling our credit our payment history is rated “Bad”, amount of debt “Good”, Length of Credit history “good”, and amount of new credit “great”.
My husband has a decent income, over $85000 a year. He works for the Railroad. We are waiting for our credit score to go up and we are wondering if it’s too early to look into a home loan. We pay almost $1000 a month for rent now and have been doing so for over 3 years. Think there is any possibility of an approval?
As you mentioned, your credit score is very low, to make you qualify for any loan.... You should work on improving your credit score before applying for a loan... You require a minimum score of 620 to qualify for FHA loan and 680+ for conventional loans...
Hello J and thanks for your question.
Unfortunately, even buyers with only slightly blemished credit are finding it difficult to get a loan today. The minimum requirements for most loans is a FICO mid score of 620 or better, a minimum down payment of 3.5% of the purchase price for an FHA loan, 20% for a conventional loan (with Fannie Mae and Freddie Mac), steady documented income and two years worth of filed income tax returns. If you are missing any of the above, it will be a challenge to obtain financing. While ARM and stated loans (those not requiring as many documents as a "full doc" loan) are returning to the market, these are also only available to those with FICO scores of 720-740 and above.
My suggestion is to work on your credit with a qualified credit counselor or trusted mortgage broker who can help you improve your score so that you can buy in the future.
Good luck!!
Sincerely,
Grace Morioka
Area Pro Realty
You should find a Good Lender and sit down with them one on one to answer the question.
Brian
Check out this service. Can help your situation perhaps? No affiliation to me....
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