Home Buying in Richmond>Question Details

Mzshortcake1, Home Buyer in Richmond, VA

Want to buy a home but credit score is low.

Asked by Mzshortcake1, Richmond, VA Thu Jul 19, 2012

I am starting my research on buying a home. I have recently started to rebuild my credit after bad choices I made when I was eighteen (allowing people to get stuff using my info). I bought a car in Feb. of this year. When I got it the dealership told me that my credit score was 598. I made all of my payments on time. In June I was rear ended and my car was totaled. I went back to the same dealership and got another car and was told that my credit score had went up to 611. How long should I wait now before beginning to search for a house? Also my fiance and I want to get the house together but his credit is worse than mines. Should we still try together for income purposes or should I try to get a loan on my own?

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Answers

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We have programs that allow the borrower's credit score to go as low as 530. Of course the downpayment and rates will vary. At a 598 credit score, you could still qualify for a low down payment and interest rates. If you do need to add an addtional borrower, we do have rescore programs availble to help you.
0 votes Thank Flag Link Fri Nov 16, 2012
Points to think about: some lenders can work with lower credit scores than the standard.....but, as your reward for purchasing a home with less than perfect credit and getting someone to take a risk on you, you'll likely pay higher interest rates and may have to pay a higher fee for the lender to provide the loan.

Tina was right on the money when she answered about your fiancé. I recommend that you work to get your credit up to maximize your abilities to shop around for rates. With a score around 610ish, it shouldn't take more than 6 months of doing the right things to get in the 640-680 range. A local real estate agent should be able to guide you to someone that can look at your credit and give you some pointers on how to increase your score relatively quickly.

Good Luck.


Darrell D. Drouillard
Home Team of America
16719 Huebner Rd., Bldg 4
San Antonio, Texas 78248
210-373-6160
210-881-6760 (Fax)

http://www.dddrealtor.com

'Serving all Your Real Estate Needs'
0 votes Thank Flag Link Thu Jul 19, 2012
Not really, I have a lender who will be able to work with you. All she needs is a 580.
0 votes Thank Flag Link Thu Jul 19, 2012
You will need to get your score up. Most loan programs are looking for a score of 620 to 640 minimum. In order for your finance to be on the loan, he will need to meet the minimum score as well. You need to be working with a reputable local lender that will help you confront your credit issues and give you tips on getting the items on your credit taken care of that will keep you from purchasing.

Even if you meet the minimum score requirements, you cannot have certain things like collections on your credit report. Banks are being very careful about making loans now and they want to be sure that their borrowers are not only credit worthy, but responsible with their overall finances. If you need to get in touch with a good local lender, please give me a call at 804-972-9927.

Tina Beasley
Associate Broker, ASP
Resource Realty Services
804-972-9927
0 votes Thank Flag Link Thu Jul 19, 2012
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