Home Buying in 75070>Question Details

chris, Home Buyer in McKinney, TX

My credit score is 612 and my wife's is 654. Can we find a lender that will approve us to build a new home with a reputable Texas builder?

Asked by chris, McKinney, TX Tue Aug 21, 2012

We've got the proof of income and have never been late on a mortgage payment, but have quite a few late payments on credit cards as well as a bunch of medical collections (all showing as paid) but our current lender won't approve us until my score is up in the 650 range because they say they can't generate auto-approval for PMI without it. Any advice?

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First, I would suggest carefully examining your credit report for obvious inaccuracies. Many times, medical collections in particular are reported in error, incompletely, inaccurately, or without the necessary validation information to warrant lawful reporting.

In the event that you need assistance in deciding what should and shouldn't be there, I would recommend that you at least speak with a consumer credit professional about what steps you can take on your own toward remedying them, or consider allowing them to initiate those efforts for you. Generally speaking, they'll be able to offer some advice on either route at no charge.

You mentioned having credit cards... I've attached an article I wrote in 2011 that might be of some assistance in giving you a measurable increase as well...

Doc Compton
THE consumer credit expert.
http://www.doccompton.com
214-733-8336
2 votes Thank Flag Link Fri Nov 9, 2012
Chris,

It would never hurt to get a second opionion. I would also recommend speaking to someone in credit repair to see what can be done to raise your score.

Stuart
1 vote Thank Flag Link Fri Nov 9, 2012
Do you have any credit card debt?
Paying down revolving accounts will get you a fast score boost.

What price range?
We do FHA at 600

Max FHA loan is $271,050


Tom Burris
Mortgage Banker
DallasLoanGuy.com
(214) 763-4629 cell/text/nights/weekends(Really!!)
tomburris@dallasloanguy.com
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
1 vote Thank Flag Link Tue Aug 21, 2012
I know a reputed builder who will customize and build a home for you and they have their in-house lending and the they will put you in a program called buyers club, and will repair and build the credit and credit score in the course of time they are building your house..Usually it is around 100 points by the end of repair and the service is free and not charged.
If you nerd more info, please contact me.

Sincerely

Rajan Mathai
214 649 5086
rajanm@kw.com
Keller Williams Realty, Allen TX
0 votes Thank Flag Link Sun Aug 11, 2013
You can get an FHA loan with mid 600 middle score with some lending institutions but not many. I would recommend finding a broker or service to help you locate a reputable lender that can approve your loan at a decent rate. I have client's who have got approved and received a good rate at The Lenders Network with FHA and VA home loans. If anyone can find you a loan they can!
0 votes Thank Flag Link Sun Aug 11, 2013
To get the best rates you usually need to have at least a 620 credit score. It may make sense to use credit repair to increase your score and get a better rate and a better deal. Medical collections are not a problem, but your CC late payments are.
We have a program that will give you a 5% grant to cover your down payment and some closing costs when used with an FHA loan. If you want to know more please give me a call!
0 votes Thank Flag Link Wed Apr 10, 2013
Yes I can find you a lender give me a call anytime 214.984.1213
0 votes Thank Flag Link Mon Apr 1, 2013
Chris,

I would love to help you get into a new home. I am able to approve 580+ credit with no investor overlays. Your late payments and medical collections shouldn't be a problem at all.

Give me a call or send me an email.

K.C.
214-432-0486
kjones@rhlending.com
0 votes Thank Flag Link Tue Jan 8, 2013
I have programs starting at 600
I would help you get the score raised while the home was being built as once you are aver 640 the deal is a little bit better (About the same rate, just a little lower fees).

My office is in McKinney and I work out of a home office in Plano quite a bit as well.
Let me know if you would like to meet.

Thanks
Tom


Tom Burris
Mortgage Banker
DallasLoanGuy.com
(214) 763-4629 cell/text/nights/weekends(Really!!)
tomburris@dallasloanguy.com
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
0 votes Thank Flag Link Tue Jan 8, 2013
you can contact me on more info on this and i will be glad to tell you how to do it
0 votes Thank Flag Link Fri Nov 9, 2012
DR Horton will let you on a contract with the score and they also have a program call Homebuyers club, You enroll in that and by the time you finish buiding with them, they repair your credit for free and will be at least 50 t0 60 points higher.
0 votes Thank Flag Link Fri Nov 9, 2012
All lenders do not use the same guidelines. FHA, VA, FHLMC and FNMA have guidelines but it is the actual lender who can overlay a stricter set of guidelines.

So, while one lender may say no to a 580 or say yes to a 610, other lenders may have the exact opposite answers.

Yes, automated approval usually runs faster, but you can probably still be approved ... with the right lender. Automated vs manual is mostly about the time and effort to get the loan approved.

Clearing up some of the items will eventually raise your score. Older negative items weigh less in bringing down your score than a very recent late. Unfortunately, scores place a significant emphasis on consistent history, which means only time will cure a bad score (provided payments are made on time after some lates). It sounds like you just need time - if you don't pay late now - for the bad items to age.

Don't open any new credit lines - this will lower your score more. Do pay down balances - this will increase your credit utilization (score). Never pay late - pay the minimum, but pay it on time.
Web Reference: http://www.Mortgages-TX.com
0 votes Thank Flag Link Wed Aug 29, 2012
Hi Chris,

Since all lenders use the same underwriting guidelines, you are going to get the same answer from most lenders. I have clients who have worked with a rescoring company that disputes questionable claims and works on your behalf to get your scores up. Please contact me for a referral to a rescoring company.

Patrick Jackson
Realtor, ABR, E-Pro, GRI
0 votes Thank Flag Link Tue Aug 21, 2012
I have been told by credit repair companies that if you dispute paid collections directly to the bureaus, often those medical collections won't respond within 30 days. They already have their money is the theory. After the 30 days, the bureaus must remove them from the report. No guarantees here, and the many late credit card payments will definitely hurt you.

I hope your financial situation has stabilized. If you have recent credit card lates, are you really ready to purchase again? Only an experienced licensed mortgage loan officer can give you advice here.

Good luck!
Barbara Coker
NMLS#228545
Licensed Mortgage Loan Officer
0 votes Thank Flag Link Tue Aug 21, 2012
I've been working on my credit for two years and have been disputing medical items in hopes they wouldn't respond.

The credit card issues I had were a result of bad advice recommending I stop paying them so I could settle the accounts. Obviously, that was the worst advice I could have received, as I paid off an account that was then closed immediately after payment and the other I kept open and is still active to this day.
Flag Tue Aug 21, 2012
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