Home Buying in Philadelphia>Question Details

James Thomas, Home Buyer in Philadelphia, PA

am a recent college grad, with low credit will i be able to get a fha loan, making 36000 a year, and i pay a little under 700 for my bills a month?

Asked by James Thomas, Philadelphia, PA Sat Nov 6, 2010

I am looking for a home under 160,000 with 8000 saved up.

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We suggest definitely speak to a mortgage broker who is local. Let them look at your "Big Picture" financial situation. If you qualify for a loan you will know immediately. If you need to do a few things to increase the possibility of getting a loan, you will find that out as well as walk away with a game plan.

I say choose a local person only because you are a first time buyer and it really helps that the person you work with is available for you not only to give you the advice you need but to be there at settlement and after. That accountability factor and knowing you have someone around that you can meet face to face should you have questions or concerns, is so important.

We use a few mortgage brokers. Ask for recommendations and referrals and if no one can point you in the right direction we would suggest these people:

Pat Lopez from Cardinal Financial (215) 400-2600
Joe Aiken from Boulevard Mortgage Co- (215) 633-8080
Peter Snyder from Wells Fargo- (215)850-7557

These 3 people are fantastic, professional, and accountable.
1 vote Thank Flag Link Sun Nov 7, 2010
The Pennsylvania Housing Finance Administration (PHFA) is designed to help first time home buyers. It can work in conjunction with FHA financing, gives you a lower interest rate plus a $3000 assist.

The process requires patience and a lot of paperwork. Only select lenders will handle this extra effort.

But I just helped a buyer get a $129,000 Condo in Old City using PHFA and FHA combo. He was thrilled.

My philosophy is to listen first. So if you like my advice, interview me to be your Buyer agent.

Joe 215.266.7227 MoveSmarter@CBPref.com
Coldwell Banker Preferred
0 votes Thank Flag Link Thu Dec 2, 2010
The Somers Team gave you great advice (below) -- I gave it a thumbs up.
0 votes Thank Flag Link Tue Nov 9, 2010
Hi, James,

I would love the opportunity to speak with you. Perhaps I can get you financing which is NOT focused on your credit score. Would you like to get som grant money to help you with your downpayment? I have been able to help people get into their first home with as little as $1,000. And that is with much less than great credit.

If you are serious about your goal of becoming a homeowner I would like to help you make that dream come true.

All the best!

Carol Murray Cei
ReMax Action Realty
Web Reference: http://www.carolcei.com
0 votes Thank Flag Link Sun Nov 7, 2010
Hi, James.

Good for you on setting a goal for home ownership. Your first step would be to speak to a few different mortgage professionals (which I can provide for you) to understand what you can and can't qualify for. These conversations will be "no pressure" and will not cost any money upfront.

Please feel free to contact me if you have any additional questions. Best of luck!


Timothy M. Garrity | Brown McKinney Real Estate, Co.
Real Estate Professional & Consultant

tgarrity@brownmckinney.com Email| http://www.brownmckinney.com/tim Website
215-825-2250 x 1007 Office | 267-879-2716 Mobile | 267-519-5490 Fax
0 votes Thank Flag Link Sun Nov 7, 2010

This will depend on your situation. FHA guidelines are changing and is becoming much stricter than before. There is a program that requires no down payment, even with past credit issues, and I can put you in contact with the organization.
0 votes Thank Flag Link Sat Nov 6, 2010
A home mortgage is based on your income how much debt you have occured over time you might want to speak with a mortgage professional .
0 votes Thank Flag Link Sat Nov 6, 2010
Hi James,

Anyone can attain the dream of home ownership, the real question is figuring out a time frame that will work for you & your finances. The answer to your question depends on several variables.

Firstly, how low of a credit score are we talking about? There are three major credit reporting bureaus and each will provide a score of your credit standing, also known as a fico scores. Of these three, lenders will typically use your mid-score to determine if you qualify for financing. Lenders tend to prefer scores of 620 or better, however that is not set in stone. I have represented clients that have had credit scores under 600. Some lenders/investors will make exceptions based on individual circumstances & well-written letters of explanation can help.

Secondly, your lender will determine whether you have a sufficient work history, typically a two year minimum work history is required (unless you're fresh out of school or have left one position for a higher paying one in the same line of work).

Thirdly your lender will determine your debt to income ratio to determine the best price range for you & to make sure you will not be over extended in your new home.

Lastly, you will need to show enough liquid assets for your down payment, inspections, appraisal, reserves, etc., by reviewing your bank statements & tax returns. Typically a minimum of 3.5% down will be required. All bank deposits & income must be source-able & documented.

There are various loan products available to you today & we are currently experiencing record low interest rates. I would be happy to discuss with you in more detail what your buying power is & give you a realistic time frame for getting into your first home. Even if we discover that you're not ready to buy today, I can help you get a plan in place & on the road to home ownership in the very near future.

Please feel free to call me at your convenience & I will do my best to answer any inquiries that you may have.


Irene Thammavong
Associate Broker, CSP, eCertified
Keller Williams Real Estate - Philadelphia
215-327-2411 (cellular)
215-961-1491 (office direct)
0 votes Thank Flag Link Sat Nov 6, 2010
Hi, James,

My experience lies in helping first time buyers. My recommendation would be to call me to discuss your current situation as far as credit, income, and goals. I will then coodinate a meeting with a loan officer so that your information and credit can be reviewed to determine if you're able to qualify for a mortgage and any first time buyer programs, Depending on which county you're looking into, there are different programs available to help you. I'll be very happy to provide you with more information! My contact info and website are listed below. Thanks, Monica

Monica Flores, ASR, SRES
Realtor/Notary Public
Remax Affiliates NE
0 votes Thank Flag Link Sat Nov 6, 2010
Hello James.

Most lenders are looking for 620 credit scores or better.
If you make $36000 a year you will qualify for a payment (principle interest taxes and insurance) of max $1500 per month minus whatever your monthly debt on your credit report. If you have a car payment , student loans and credit cards of $700 per month, that will leave you with a mortgage payment of $800. If you want to spend more than that you need to get a family member to cosign. Of course this is a rough guide and to provide more accurate information I would need to speak with you in person.

Best Regards,
Alan Openshaw
Cornerstone Lending Inc
720 Second St Pike Suite 104
Southampton Pa 18966
Office 215 953 0800
0 votes Thank Flag Link Sat Nov 6, 2010
Hey James,

low credit score or do you mean no credit? FHA requires a credit score of 600 to qualify for a loan. There are some lenders out there however that only require a score of 540 as long as you have the money for deposit & closing costs. If you need any help or want to get in touch with those lenders feel free to contact me.
0 votes Thank Flag Link Sat Nov 6, 2010
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