1. What is your credit score? 620 or higher typically needed
2. How much money do you have saved for down payment, closing costs, taxes, insurance?
3. Do you have stable income?
If you defaulted on student loans, how long ago was that? Are the loans now current?
Always feel free to call or email.
Chad 610 457 7262 firstname.lastname@example.org
If you have defaulted on your student loans then that is going to negatively affect your credit score. However you score is made up of several different factors. The credit reporting agencies are sellers of information so they will not let you know excatly how they compute their scores. Over time someone who deals witha lot of credit reports can give you certain general information about what affects your credit.
For example, if you defaulted on a student loan 5 years ago ,it would have less impact than if you did it last week. Credit depth is also an important factor. If you have 10 credit cards all with on time payments and a defaulted student loan, your credit will not be affected as badlly as if you only had one student loan and no "good" credit.
I would suggest talking with a good mortgage broker about your situation. I can do credit scores down to 580 whereas most banks start at 620.. Also the broker can discuss your credit report with you and show you how your credit report can be improved whereas those services are not available at your local bank or credit union.
Cornerstone Lending Inc
215 674 9059
In my experience, defaulting on a student loan is real cause for a mortgage denial. If you know you are in default, why not contact the lender and ask to be put in forebearance. That will allow you to start paying back at a rate that you can currently afford. Once you have established yourself with a good payment history for 6 months - 1 year, you will be eligible for consideration to be approved for a mortgage.
Please remember also, that you need to have some good credit on your file. That means active things that you pay for monthly and pay for on time....for example, your car payment, charge bills, etc. If you don't have that type of credit but you have rental history, car insurance, health insurance, etc., that you pay monthly, you may be able to have alternative credit considered. Yours will be a complicated case but not impossible.
If you need any further assistance, please don't hesitate to contact me directly.
The answer really is, it depends. Typically, being late on any credit account (i.e. credit cards, student loans, mortgages, etc.) will create a significant drop in your credit scores from the 3 bureaus (Equifax, Experian, & TransUnion). Your score is a vital part for getting approved for a mortgage, whether you're a first-time buyer or a repeat buyer. But, there are other important factors that come into play (i.e. job history, assets, down payment, etc.).
Most of my professional background was in the mortgage industry, so if you have any additional questions please don't hesitate to give me a shout (email@example.com). Best of luck to you in your search!
Get with a local lender (local bank or credit union). Their lending policies tend to be a bit more lenient.
Hope that helps,