Sharon Rigg, Renter in Otay Ranch Village,...

Thank you for helping me to realize lease to purchase and buying my first home. I have another question. I have a low fico score one credit report is

Asked by Sharon Rigg, Otay Ranch Village, Chula Vista, CA Mon Jul 8, 2013

560 and the other two 520 totaling $3300 debt absolutely nothing else I am having a hard time just qualifying to get the consolidation to bring my score up to purchase the condo foreclosed or new form$199.000 to 289.000 I been renting all my life I would like a fixed rate FHA loan I need a very low down I am really done renting just felt like I ran out of options what can I do?

Help the community by answering this question:


Good afternoon Sharon,

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.

Trevor Curran
NMLS #40140

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1 vote Thank Flag Link Mon Jul 8, 2013
Hi Sharon,
I know this post was put a little while ago. I wanted to check and see how are you doing? Let me know if you still need some help.

0 votes Thank Flag Link Tue Dec 2, 2014
Hi Sharon,
You have to first Repair your credit. The link below Mike Watson is a very good person to get started.
Once your credit is ready to go then you can think on moving with the purchase of your home. The higher the credit us the better perks you can get. Specially interest rates and the down payment.

Mike works here in Otay lakes and he can take care of you.
I hope this helps.
Once you are ready with your credit please let me know and I will be more thank happy to help you find a new home.
Good luck.
0 votes Thank Flag Link Sat Nov 9, 2013
Hi Sharon,

I do understand your frustration!

You could fix your credit yourself too. It's not too hard, but it could take time depending on what needs to be done. Once you understand HOW you are scored, you'll know what to do to start repairing it. I have some easy to understand information I'd be happy to email you. Just email or call me off forum. Included is a sample dispute letter.

If you do go the route of trying to find a lender who'll work with your current credit scores, know that you'll be paying a higher interest rate to offset the higher risk to the lender. This means you'll qualify for less. There's always the chance that you'll be able to refinance into a lower rate when your credit improves, but no one knows what interest rates or lender rules will be in the future, so that's probably not a wise way to buy.

Don't hesitate to contact me anytime with questions or for information.

Warm Regards,

Cory La Scala, REALTOR
Independence Realty
619-825-6421 Direct
619-884-3452 Cell
Lic # 01443391
0 votes Thank Flag Link Mon Jul 8, 2013
Hello Sharon,

You should start working towards fixing your credit reporting
Start paying more than half of your total debts on each card, I am sure you will be able to purchase your home sooner than you expect.
You are not out of option, just change the plan.
0 votes Thank Flag Link Mon Jul 8, 2013
You'll need to get your middle credit score up to 580+ ...or find a lender willing to work with your current credit scores.
0 votes Thank Flag Link Mon Jul 8, 2013
Dear Sharon,

It sounds like you need to speak with lender that will be willing to review your credit history with you and make suggestions of what you need to do in order to bring up your score as well as establish necessary credit history in order to qualify. If you have any collection accounts, you need to get in contact with the creditors and when you have paid off the collection account, have them send you a Paid In Full Letter. Send a copy to all three credit bureaus. Don't assume that the collection agency will contact the bureaus for you, be proactive. This may take a little time, but don't get discouraged. The sooner you start, the sooner you will be able to purchase your own home.

Cara Castrataro
Sales Associate
Century 21 Rivera Realty
Office: 856.404.9260
Cell: 856.896.8078

Find me on Facebook @
0 votes Thank Flag Link Mon Jul 8, 2013
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