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.
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.
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.
PowerHouse Solutions, Inc.
1010 Northern Blvd. Suite 234
Great Neck NY 11021
Licensed Mortgage Banker â€“ NYS Dept. of Financial Services
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I work with some excellent mortgage brokers who may be able to help you with financing. There are still many good programs available. Please email me if you would like me to send your information to them. I would he happy to help you find financing and a home.
You will need to do a lot of checking with different banks. As well as the obstacle of your credit score, you need to find a bank that is willing to make a loan under $100,000 and find a property in the $45-60K range.
As well as Wells Fargo, you might want to try Trustco Bank, which is a portfolio lender.
Sally Griffiths, GRI
Licensed Real Estate Salesperson
The best bet would be a condo as co-ops sometimes have minimum income and/or debt/income ratios.
You can search here like an agent with more detailed information than on the internet.:
If you would like assistance, just give me a call, 914-774-2764.
Thanking you in advance for your attention to this matter.
Century 21 Schneider Realty
SMARTER. BOLDER. FASTER.