Home Buying in Houston>Question Details

Nadia Garrett, Home Buyer in Houston, TX

Want to buy a house in the Houston area, but my credit score is only 585 (equifax). Can anyone offer me some suggestions? Is it even possible to?

Asked by Nadia Garrett, Houston, TX Tue Nov 6, 2012

Help the community by answering this question:


The best way to begin this venture is to get a pre-approval. As Mark mentioned below, just because you have one score that is low does not mean you cannot move forward. If you have not yet been approved, please speak with a good loan officer and let them guide you as how much you can afford to buy, so you know what your options are, and what the maximum amount is, that you can spend. Then get with a good agent to find out what is available with your specific criteria and work with them to find something you like. Remember approvals can have expiration dates so be sure you are ready to start looking. Also, you will find out if this is the right time for you to buy or if you need to wait a bit.

Keep in mind that besides the price of the house, you will be looking at additional costs every year like the property taxes, the Home Owner Association fees if governed by one, and cost of home insurance. This is not to scare you, but to make you aware from the begining so you are prepared to take on the home buying process.

Call or email if you have any questions, or if you need a reference for loan approval.

2 votes Thank Flag Link Tue Nov 6, 2012
Have you started the process of looking into a pre-approval and checking out your credit to see what you can do to help you get ready for your home purchase?
Flag Fri Jan 11, 2013
Possible ... yes. Likely ... no. Much depends on the reasons for the low FICO score. Unemployment, medical, bankruptcy, excessive credit card usage, late payments/charge-offs ... whether the debt was at least partially unavoidable (illness, etc.) or largely the result of bad decisions can make a difference. I'm assuming that your employment and rental histories are favorable ... if not, I wouldn't hold out much hope, irrespective of other factors.

Even if you are approved, you may need larger down payment and/or pay a higher interest rate. Chances are that the maximum amount would also be lower than if your credit were better.

My advice to people in your situation has always been to continue working on their credit, and save for a larger down payment. You'll wind up with a better home, be able to purchase it on your terms, and be under less financial pressure.

Don't rush things. Your home will be there when you're ready. I wish you well.

Regards ...

Al Geffon
(713) 213-6350
Web Reference: http://www.har.com/algeffon
2 votes Thank Flag Link Tue Nov 6, 2012
First step would be to get pre-approved for a morgage. This one score does not tell the entire story. The lenders look at all 3 credit scores, plus your income and expense and so much more. They will look closely at your job history and any past issues such as foreclosures or a history of late pays.

The score is a bit low, but your close to what could qualify for an FHA loan. This type of loan would allow you to put only 3.5% down. The loan officer can guide you on how to get this score up!

Once you get your pre-approval for a morgage, you will know what your upper price limit is. Then you can begin looking for a new home with an experienced Realtor who works with 1st time buyers and knows the areas you want to move into. I have many lenders on my web site that work with 1st time buyers under the resource page. Feel free to email or call them to get started!

Mark McNitt
m 832-567-4357
Bernstein Realty, Inc.
2 votes Thank Flag Link Tue Nov 6, 2012
Unfortunately most lenders are looking for higher FICO scores..that being said....you can buy for that score......you just wouldnt be getting the best interest rate with that FICO score. If you can wait it may be best to......if you dont mind paying a bit higher interest for now until you get the score up and can refi
1 vote Thank Flag Link Sat Nov 10, 2012
That credit score will most likely be too low. I would take steps to raise it to at least mid 600's. What is your time frame to purchase a home? Speaking with a credit repair person would be a good start.

0 votes Thank Flag Link Fri Nov 9, 2012
Try Owner Financed home. Much more flexible, no closing costs, and no underwriter crap to deal with.
0 votes Thank Flag Link Fri Nov 9, 2012

Red my book... It is free.
Then call me.

Tom Burris
Mortgage Banker
(214) 763-4629 cell/text/nights/weekends(Really!!)
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 Nov 6, 2012
Sure, I have several options that will work for you including ownership of a new home built from the ground up. Feel free to contact me. 832-703-2411
0 votes Thank Flag Link Tue Nov 6, 2012
Hi there,

Have you worked with an agent yet? Take a look at our listings, http://www.trulia.com/voices/directory/Houston-agent--18875

Hope this helps,
Ali, Community Manager
0 votes Thank Flag Link Tue Nov 6, 2012
We recommend talking to a lender that can advise you based on your situation. We work with a lender who can take a look at your financial situation and recommend steps you can take to improve your score. It's not a quick process, but could really save you in the long run.

Message us and we'll put you in touch!

Hope this helps,

The Loken Group
281- 861- 4624
0 votes Thank Flag Link Tue Nov 6, 2012
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