Home Buying in Southfield>Question Details

Msusa07, Home Buyer in Farmington Hills, MI

We need HELP! Our credit score is 580. We want a house! We are first time home buyers. We want a FHA loan with down payment assistance.

Asked by Msusa07, Farmington Hills, MI Wed Jan 4, 2012

I've been told "this" I been told "that" we're looking for someone who can help us. Anybody out there weith some helpful info. please share.

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Answers

34
I'd say pretty good if you use the right lender, have the down payment and you can show that financially you are in a good position. Talk to a broker first that actually knows credit, paying off debt may not be necessary depending on the accounts and how old they are. I recommend the lenders network, if any company can get you a loan they can. I have had clients with a 580 score get approved..
20 votes Thank Flag Link Wed Sep 25, 2013
Thanks for recommending The Lenders Network Jessica! They were able to get me pre-approved, well they had a lender call me who got me approved!! They also referred us to a great realtor!!!
Flag Sun May 4, 2014
Good afternoon Msusa07,

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.
http://www.consumer-action.org/

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.
http://www.consumer.ftc.gov/articles/0058-credit-repair-how-…

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

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
3 votes Thank Flag Link Mon May 13, 2013
Good and honest advice. My credit score is low and with the promises of approval with my low score, I easily get pump up and excited. But the reality is I NEED to clean my credit and get back on track. Then I can buy my dream house. I've already started the process so I give myself one year and half to be READY. Again, thanks!
Flag Thu Jul 10, 2014
what happens when you are paying your bills you don't have any bankruptcies or liens? And your debt to income ratio is at 33%.
Flag Fri Feb 7, 2014
Don't buy.

You have a low credit score. You have no home ownership experience. Yet you want, want, want. You want an FHA loan. You want downpayment assistance. And you want help.

Rent. Clean up your credit. Save up some money.
2 votes Thank Flag Link Sun Aug 25, 2013
Credit score at 600, sitting on $35,000 and making $100,000 salary, plus owning 5 rental properties purchased with CASH (extra $40,000 annual income) = no mortgage loan.
Flag Fri Jul 15, 2016
To: Don Tepper - Well, aren't you just coming across as a giant A$$hole!!
Flag Fri Jul 10, 2015
did all that and credit budged to 599...guess what? still no use, no mortgage for 599 either, with all the stuff you claim makes a difference. Well, if you are sitting on a 20-30000 and make 100000 a year or so, everybody will beg you to give you money. Until you get into the "rich" category, YOU CAN PAY 1000 RENT, BUT NOT WORTHY TO GET A MORTGAGE,,,GO FIGURE, THEY KEEP IT WITH THEIR OWN DEAR
Flag Sun Mar 22, 2015
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
I work for a direct lender in the mortgage industry who offers conventional, FHA VA, and USDA loans in all 50 states. Are lowest score we accept for government loans are 550 when most lenders require a 620 and brokers a 580. You have to have two years of income with a score over 550 with bankruptcies discharge date 2 years and over. We have basic guidelines and a pretty easy process. Feel free to text me or call me anytime up to 10:00pm Eastern with any questions.
Brian Young 214-797-3479
1 vote Thank Flag Link Sun Jan 10, 2016
Hi Brian, I saw this feed doing some research because my fiance and I are looking to buy. We have already seen some significant jumps in our scores over the last 3-5 weeks. We are almost to a 580. I have only been working with 1 lender/speaking with him, but I want to explore all my options and see what others have to offer before I commit. If you think you would be able to help us at all please feel free to email me at erbarbour.eb@gmail.com
Flag Thu Mar 10, 2016
I would recommend calling a good loan officer. I can recommend a couple if you would like. The guys I work with will tell you what you can and can not do. Good luck and please feel free to contact me for any questions you may still have.
1 vote Thank Flag Link Thu Sep 26, 2013
The only helpful info I could offer would be to work on that credit score, you will not get an approval with a score where it is.
1 vote Thank Flag Link Tue Sep 3, 2013
Hi Msusa07,
A low credit score indicates that you are a credit risk--maybe you won't pay. To improve your credit score, pay all your bills on time. After a few years your credit score should go up. Save your money for a downpayment. Good Luck
1 vote Thank Flag Link Wed Jan 4, 2012
How many years would it take to pay promptly in your mortgage so that you will be able to upgrade your credit rating?
Flag Tue May 14, 2013
Sounds like you should have a easy pre-qual

Licensned in 43 states not just CA, I work for a direct lender in the mortgage industry who offers conventional, FHA VA, and USDA loans. The best part is unlike lendingnetwork we keep your info private not broker it out and we go below 580. Are lowest score we accept for government loans are 550 when most lenders require a 620 and brokers a 580. You have to have two years of income with a score over 550 with bankruptcies discharge date 2 years and over. We have basic guidelines and a pretty easy process. Feel free to text me or call me anytime up to 10:00pm Eastern with any questions.
Brian Young 214-797-3479
0 votes Thank Flag Link Mon Dec 28, 2015
I purchased a Home on land contract, recorded it at the court house and did everything the realtor told me to do. I have made my payments on time for the last 2 years and paid off other debt over this period. I continue to pay my student loans on time and am unable to get a loan. I have a credit score of 580. Purchased the house for $52,500. put 10k down and have a balance of $32500. Ant ideas on what else I can do? My credit score isny moving at all and my contract is up in January 2016
0 votes Thank Flag Link Sat Sep 12, 2015
Licensned in 43 states not just CA, I work for a direct lender in the mortgage industry who offers conventional, FHA VA, and USDA loans. The best part is unlike lendingnetwork we keep your info private not broker it out and we go below 580. Are lowest score we accept for government loans are 550 when most lenders require a 620 and brokers a 580. You have to have two years of income with a score over 550 with bankruptcies discharge date 2 years and over. We have basic guidelines and a pretty easy process. Feel free to text me or call me anytime up to 10:00pm Eastern with any questions.
Brian Young 214-797-3479
Flag Mon Dec 28, 2015
We offer standard FHA & VA financing down to a 580 credit score without investor overlays, and close the average file well within 30 days. All processing and underwriting is done in office, communication is impeccable. Feel free to check out my Zillow profile below, and let me know if I can be of assistance:

http://www.zillow.com/profile/matt802/
matt@nlcloans.com
214-866-0038
Matt Schwartz
NMLS# 151017
0 votes Thank Flag Link Wed Aug 12, 2015
There is no such thing as down payment assistance on an FHA loan- unless of course if you mean a friend or family member who can cough up the cash. You will have to- out of your own funds come up with 3.5% to put down on an FHA loan.

Let us not forget your closing costs. By the sounds of things now, I would not be so hasty to apply for a loan...
0 votes Thank Flag Link Fri Sep 27, 2013
I can help you. email me anytime @ nataly@dfcorp.com
0 votes Thank Flag Link Tue Jul 16, 2013
Hello All,
I am located in Houston, TX and want to become a first-time buyer. I have 590 credit score, $ 6,000 saved for a down payment , 24 months on on-time rental payments, letters from landlord , utlities and auto lender as proof of on time payments. Are there any lenders, or programs avaliable at this time?
0 votes Thank Flag Link Mon Jul 15, 2013
I am in the market of trying to obtain a first time buyers program. The challenge that I am facing pertains to my credit with previous medical bills has my score at 586... Can someone give me advice or know who maybe able to give me hope in Atlanta Georgia....Thanks in advance
0 votes Thank Flag Link Sat Jul 13, 2013
Msusa7,

One other thing. I have good lenders who can look at your credit profile and possibly give you a couple of tips to do right away and raise your score up to a more desirable level. Let me know if yu wuld like my lender's information. All the best.

Robert McGuire ASR
Broker/Consultant
Your Castle Real Estate
Direct - 303-669-1246
http://about.me/robertmcguire33
0 votes Thank Flag Link Sat Jun 15, 2013
Well I would suggest that you get a company to help you out. I've been told that EZ Lease Rentals is an excellent company that can help out people with situation like yours.
0 votes Thank Flag Link Thu May 16, 2013
In addition, you can also read this article leaderscorpfinancial.com/what-is-a-good-credit-score/. I hope this one helps.
0 votes Thank Flag Link Wed May 15, 2013
The federal government used to offer down payment assistance programs, but those programs got cut in 2008. The good news is that many state and local agencies still offer down payment assistance, so check with your city, county, and state housing agencies to see if they have any programs available and if you qualify. Some states will give you up to 3% of the down payment, closing costs, or both, so it never hurts to ask!

read more here on down payment help..http://www.realtypin.com/news/story/1149-downpayment-help

http://www.realtypin.com/news/story/1079-downpayment-loans
Web Reference: http://www.realtypin.com
0 votes Thank Flag Link Tue May 14, 2013
I suggest you talk to an expert or one mortgage service provider since they have the right knowledge regarding the FHA. By the way, where do you want to buy a house?
0 votes Thank Flag Link Mon May 13, 2013
Have you considered renting? Your credit score is not good and you are probably having a hard time renting a place. Well, before you get into purchasing a new home, you might want to consider renting first so you can easily restore your credit. There are companies that can help you rent, these are the companies that help people rent with bad credit. They don't do credit checks and they only ask for little requirements. I would recommend EZ Lease Rentals as I've tried them already.
0 votes Thank Flag Link Mon May 13, 2013
You need to find a HUD owned home in the neighborhood that you want. I can't do Michigan loans or I would be able to finance you. The down payment on what we call the FHA REO Program is only $100.00.

Check to see if you have a Mortgage Broker in your area and they should be able to help you.
0 votes Thank Flag Link Mon Feb 25, 2013
A key factor that any Mortgage Lender uses, is your employment history, credit history, credit score and debt level, to determinate if you are suitable for a loan. Try to shop around for a home loan expert who understand the market inside and out.

Best of Luck,

Maria Cipollone
Century 21 tenace
0 votes Thank Flag Link Tue Jan 29, 2013
You would want to check with a local Mortgage Broker. I can only do Ohio or I may be able to help. Wholesale Lenders like First Guaranty or Pacific Union that brokers are setup with have programs that could help you. As for the down payment assistance that is a little harder. You might want to consider finding a HUD owned home and then your down payment would only be $100.00
0 votes Thank Flag Link Tue Jan 29, 2013
I'm not in MI, I'm in OHio.
Flag Sat May 11, 2013
Could you help me? My credit score is 604 and I'm pregnant with my second child looking to find a house but I have been having trouble getting approved.
Flag Sat May 11, 2013
I know of several lenders that will supply a FHA mortgage with a credit score of 580. I have provided my contact information below please feel free to contact me so that I can assist you.

Crystal Washington
Master Mind Realty LLc
Broker/ Owner
crystal@mastermind-realty.com
(248) 223-9338 (Office)
(248) 467-8689 (Fax)
 http://www.mastermind-realty.com
0 votes Thank Flag Link Sat Aug 11, 2012
Can you help with a lender in the Houston area that will supply a FHA mortgage with a credit score of 580.
Flag Sun Apr 7, 2013
You may want to get your credit report from Trans Union, Experian, Equifax and see why you score is so low. As a rule of thumb, you will need to have any collections, tax liens, judgements satisfied prior to purchase. Additionally, you will need keep all accounts open and pay them down to at least 50% of their limit. Ideally, you want them to be under 30% but leave at least a 10% balance which will be better than actually paying them off entirely. For more information, please call me at 248-802-6464.

I am only licensed in the state of Michigan.
0 votes Thank Flag Link Wed Aug 1, 2012
I got approved and just bought a house with a credit score of 580. It was a hassle but the bad credit was medical bills and all of them are taken care of now. It is possible.
0 votes Thank Flag Link Thu Jul 26, 2012
I NEED HELP. PLEASE TELL ME HOW YOU DID THIS.
THANK YOU. I LIVE IN TN. MY NAME IS SANDRA.
Flag Thu Feb 4, 2016
Please tell me how you did this, I am having no luck\k with a score of 594 and steady en\employment and a reasonably god income. Any help or tips\would be so appreciated.
Flag Thu Jan 17, 2013
From the looks of things, you need to get your FICO score up over 600+ by either paying off some debt or solving and eliminating issues on your credit report.
0 votes Thank Flag Link Fri Jan 6, 2012
That is a lot to ask for considering you have no skin in the game. There are 100% loans out there as well as down payment assistance from state and county agencies but you need to fix your credit first. All borrowers are a risk and the key is to present yourself as a good risk.

Are you able to document positive pay history in the last 24 months?

Do you have positive rental history in the last 12-24 months?

Do you have a stable income or do you change jobs a lot?

Do you have any reserves? Money in the bank in case of a rainy day??

How much total debt do you have?

What other types of credit have you been applying for in the last 6 months besides a mortgage?

These are just some of the things that can hurt or help you. Read up about what to do about your credit here:
http://www.trulia.com/blog/elliott_r_oliva/2011/07/credit_10…
0 votes Thank Flag Link Fri Jan 6, 2012
With a credit score of 580 a mortgage is near impossible....Another option may be a rent to own or land contract, but even with land contract you will need to come up with a down payment. The days of being a homeowner with bad credit and no money ended back in 2005 with sub prime lending. My advice would to take the next year building on your credit and saving for a down payment. I dont see home prices taking a big jump in the next 12 months so dont worry you will still get deal
0 votes Thank Flag Link Fri Jan 6, 2012
Msusa07,
Your credit score isn't good and you need (want) help with the down payment, not a good combination.
Go to your local non profit housing group for credit counseling. The counselor will go over your credit report with you. They will tell you what you are doing wrong and what you should be doing. Listen to them and when your score is 640+ you can think of buying.
In the mean time save money for a down payment.
0 votes Thank Flag Link Wed Jan 4, 2012
I agree. Your credit score is so low. You are a credit risk due to past bad financial decisions. Just because you want something, doesn't mean you have to be given it. Oops, I forgot the occupy movement. Sorry!
0 votes Thank Flag Link Wed Jan 4, 2012
@FSBOsuccess - You have no idea what this person has been through...(nor do I) - whether they have made poor financial decisions, or whether Fate has dealt them a sh*tty hand and they have huge medical bills, etc. Keep your smug, self-righteous opinions to yourself... or, if you prefer a lesson from our children, a la "Bambi", courtesy of one of Bambi's friends, I believe the quote goes, "If you can't say nuttin nice, then don't say nuttin at all."
Flag Sun Dec 1, 2013
Msusa07,

There are very few loan products that will approve a 580 credit score after some of the recent changes in financial guidelines. Even the FHA downpayment assistance programs that will go under 600 for approval will often have other guidelines that make it almots impossible. I would talk to a strong 1st time homebuyer lender in your area to discuss this. They can also work with you to build up your credit over a stipulated amount of time so you can purchase down the road.

Robert McGuire ASR
Realtor/Consultant
Your Castle Real Estate
1776 S. Jackson St. #412
Denver CO 80210
Direct – 303-669-1246
0 votes Thank Flag Link Wed Jan 4, 2012
Msusa07

There are many factors that are considered by mortgage companies when reviewing someone's application. Of course, it does help to have "Tier 1" or "excellent" credit (720 or above). However, the other factors are income, length of time at your job or job field, how much debt you have versus your income (debt to income ratio). It would definitely help to have a low income to debt ration ( 28% of less) if you have poor credit. Other factors are amount of down payment, cash reserves. My advice to you would be to get a copy of all three of your credit reports, see what is negatively affecting your report/score. Spend as much time and get help from a service that helps people improve their overall credit. There may be some inaccuracies on your report that don't belong there. This is the advice I give to all my customers. I tell them this even up to a year in advance. Don't be discouraged!!! Good luck!!
0 votes Thank Flag Link Wed Jan 4, 2012
There are other factors besides credit that determine mortgage qualification, income, debt, assets, down payment, etc.; therefore do visit with any licensed loan officer; be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously.
0 votes Thank Flag Link Wed Jan 4, 2012
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