Home Buying in 94583>Question Details

seafoodfried…, Home Buyer in Tracy, CA

With a bad credit, will I be able to buy a house?

Asked by seafoodfriedrice, Tracy, CA Thu Sep 12, 2013

My credit score is quite bad, around 580-610. I'm looking for a house and found one that I like the best. The price is at 650k. I can afford to downpay up to 30%.
What is the chance for me to secure the house in this situation at a good interest rate (looking at something lower than 4%)?

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Answers

12
Jessica Bateman’s answer
FHA loans require a 580 score, Conventional require a 620 and 3% down.. You may be able to pay off some debt (open revolving debt) to decrease your utilization ratio in order to increase your scores.. I recommend The Lenders Network, they can refer a Lender or two that can get you pre approved.

Good Luck!
3 votes Thank Flag Link Sat Sep 28, 2013
I can certainly help you out there. You can call me at 408-352-5147 or email me at AGreer@themortgageoutlet.com. You can check us out at http://www.TheMortgageOutlet.com. I will look at your situation and present you with some options.

Alex Greer
NMLS #1056079
1 vote Thank Flag Link Fri Sep 13, 2013
Based on your credit score, your best bet is an FHA loan. It is possible to get under 4% interest today, but you would have to go with either a short term fixed rate (15 year fixed for example), or a short term ARM (which will give you time to build up your credit score and refinance into a fixed loan later). There are some lenders with special programs that you may qualify for, but it would be case by case, and the rate will be higher than normal. 3x the rate is hard money territory, but I work with a few lenders that are somewhere in between (normal rate + 2% for example), so not too bad.
I am a local real estate broker in Danville and do cover Tracy, and I have a number of mortgage lenders that I can put you in touch with depending on your situation. If you are interested, you can call me at 925-263-9872.
Good luck!
1 vote Thank Flag Link Fri Sep 13, 2013
People with 800 credit scores and 30% down on a conventional loan won't get below 4% on a 30 year fixed rate these days. At a loan amount of $455,000, your only option is going to be FHA where the limit is $488,750. However, there isn't any lender that will do an FHA jumbo with a 610 score so no matter what, you will need to work on that with an experienced loan officer to get that score up.

If you look at alternative financing sources such as hard money, you may find a taker, but I assure you it won't be any where near 4%; try 3 times that.

Get your scores up.
1 vote Thank Flag Link Thu Sep 12, 2013
Gotcha. And again my knowledge in the area is shallow at best. I thought that I could get the same interest rate as I do now instantly when applying for a loan.

Thanks
Flag Fri Sep 13, 2013
Apply for what some call a bad credit home loan. If you do not want to wait the average 24 months to get your credit up to par, and you need a house right away, the other option is to seek out a bad credit home loan, also called a subprime loan. Subprime mortgages charge exorbitant interest rates, so you have to be certain that paying the monthly payments won't be a challenge for you. The housing crisis of 2008-2010 imposed severe restrictions on banks and lenders with respect to the interest rates and origination fees they are allowed to charge. Keep in mind that income verification will be required.

J. Reeves
CEO and Founder
Reef Point Realty & Construction
http://reefpointrealty.com
858-521-9350
1 vote Thank Flag Link Thu Sep 12, 2013
Yes, depends on how bad it is, you can qualify for FHA loan with FICO as low as 560, and another option is a reverse mortgage, you must be 62 years old), but rates are slightly higher.
1 vote Thank Flag Link Thu Sep 12, 2013
Hello seafoodfriedrice, your qualifications will be determined by your credit profile, debt to income ratios, fico scores and how much you want to invest into the down payment and closing costs. If you have credit issues, your credit scores can be raised within 3-4 days in most cases to qualify for programs, rates and terms as necessary.

You may qualify to buy FHA with fico scores between 500-579 with 10% down or minimum 580 fico score may qualify FHA 3.5% down or even as low as .5% half percent down payment program. You may consider 3% down conventional from a minimum 620 fico score or even 5% down conventional with NO Mortgage insurance (Lender paid MI).

If you figure out what cities/zip codes you are considering, minimum number of bedrooms and the maximum payment/price you are looking to achieve you can be emailed listings to fit your search criteria.

You will need to be pre-approved to be able to meet an agent to view and submit offers on any homes of your choice. It only takes a few dozen questions to qualify, go over your options and email you listings to study and compare. Here are some links to study as well as web reference links to many loan program pages offered...

Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
Veteran & VA/CalVet Loan Specialist
REO & Short Sale Specialist
Credit Repair At No Cost
ALL Loan Programs Available
22+ Years Experience
BRE# 01140252
NMLS# 297251
760-486-4225
9am till 5pm by phone Monday thru Saturday, Sundays by appt., EMAIL ANYTIME 24/7
Under640FicoScoreLoans@gmail.com or HomeLoans4U@live.com
http://youtu.be/MrygA2_8fAY
http://www.trulia.com/profile/SherylArndt

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0 votes Thank Flag Link Wed Mar 25, 2015
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0 votes Thank Flag Link Wed Mar 25, 2015
There are definitely lenders like myself that can get you the loan that you need with that credit score. I have been able to give out loans with credit scores as low as 580. Also, your 30% down payment also helps because it is rather high, so it will make up for your low credit score. When it comes to getting a rate less than 4% that can be hard to say with the information you have given us because it depends on more of your financial information. I recommend speaking with a lender like myself. I have done plenty of loans throughout California and I would be more than willing to speak with you to get you the loan that you need. Well I hope this helps! If you have any further questions or if you need a loan, feel free to contact me. Also, if you found this helpful please leave me a recommendation if you can! Good Luck! Brian Nguyen Sr. Mortgage Banker NMLS # 659743 Phone: 949.667.2887 brian.nguyen@nafinc.com
0 votes Thank Flag Link Wed Feb 19, 2014
Not good, but check with your bank to make sure.
0 votes Thank Flag Link Thu Sep 19, 2013
Seafood:

Although there are lenders who will underwrite ficos in the high 500s, it is an uphill battle.
We need to look at why your credit scores are low.
Do you have credit cards that are over 50% of their maximum limit? If so, you should be paying those down and having your credit reran after the balances are paid down. This can bump your rate a TON.
With 30% down, you have cash to do that.

Your second challenge is rate: rates below 4% are gone by the wayside, unless you are willing to go with an interim ARM product.

If you would like to discuss this in more detail, please feel free to email me at: cgravelle@divmg.com
0 votes Thank Flag Link Thu Sep 19, 2013
Go to HUD.GOV

you can get all kinds of info on home buying.

If your credit is not so good be careful. You may find a lender willing o give you a mortgage loan, but you will not get the best terms and conditions.

Best of luck to you!!!
Kawain Payne, Realtor
Web Reference: http://www.Hud.Gov
0 votes Thank Flag Link Fri Sep 13, 2013
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