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blank, Other/Just Looking in Minneapolis, MN

credit score 617 i need a lender for a house .any takers or ideas?

Asked by blank, Minneapolis, MN Tue Nov 20, 2012

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Ken Graczak’s answer
Here is an article that explains the minimum credit scores. I have multiple lenders I work with that go down to 620. I have a couple banks that go down to 540. FHA will go down to 500... http://www.fha.com/fha_article.cfm?id=200
0 votes Thank Flag Link Thu Dec 13, 2012
I may have a national lender I found who says he can do 600 for FHA, but there is no way to know if you can get through UW standards. The only way to know is fill out an application with him. If interested feel free to get in contact with me.

~Chris
0 votes Thank Flag Link Wed Dec 12, 2012
Depending on what the issues are with your credit and your ability to work through them, there are lenders out there that will run your credit and provide guidance on what you need to do to get to that 640. 617 isn't that bad. It may take a couple months (or longer depending on what the issues are) to get you to a point where you qualify to purchase a home. Give me a call and I'll help you get to that lender.

Vicki Schwartz
MN Real Estate Options
Broker/Owner/Short Sale Professional
Accredited Platinum Real Estate Professional
Phone: (952) 443-2056
Fax: (952) 236-6429
Cell: (612) 801-2355
Check out our website at http://www.mnrealestateoptions.com for great information on all aspects of real estate, for Buyers, Sellers and Investors
0 votes Thank Flag Link Fri Nov 23, 2012
617 is not that bad at all really. Someone below me mentioned teaming up with a lender who does "rapid-re-score". Basically, some lenders just give you ideas and suggestions, then tell you to come back in 90 days. If your score is not where it needs to be by then they just repeat the process with very little interaction during that time.

Rapid re-score is a free software to you where it analyzes your credit profile and tells you exactly what to do in order to bump your scores up in 30 days. It will also tell you how many points you can expect to get bumped up in that time-frame.

I have found with my own clients in similar credit score ranges that this is the best route. Credit repair companies are really only good for removing collections or major hits....95% of rebuilding your credit (and some may 100%) still solely relies on your actions. In other words, there is no magic pill.

In truth though the score is only 1 part. Someone also mentioned employment gap, and it is fairly standard now that you need 3 types of credit in good standing for the past 12 months.

I am not a lender, so my best advice is team up with a lender who fits your profile. For example, if you are a first time buyer, or around the median income for Minnesota, you may want to work with someone who specializes in down payment assistance. Not every lender does these programs and there is money available to those who qualify. Having a lender who does rapid re-score is a must to get the credit scores bumped.

Most buyer's agents are masters at networking, and we usually have 3-4 loan officers as contacts depending on the type of client we are working with. Over years of experience and multiple transactions Realtors tend to find the best loan officers in the area to work with. I consider it just part of my job and service to my clients and I am sure the others do too.

If you want a referral just contact me and I will shoot you over to my LO. It will probably be easier than you figuring out on your own. You don't have to be obligated to work with me, or really anyone else, just for receiving the referral. All buyers agents in Minnesota are paid by the seller, so in many ways finding the right Realtor for you is the same process as finding a loan officer.

Good Luck and Happy House Hunting!

~Chris
0 votes Thank Flag Link Wed Nov 21, 2012
I you are in the Twin Cities, you may be able to get a loan with a 620+ score, at least until Dec 18th when it's going up to 640+. Contact The Minnesota Housing Finance agency at http://www.mnhousing.gov. Or, call 651-296-8215. These folks are very helpful. You'll have to jump through a couple of hoops, but their not difficult hoops. Good luck.

Once you've got your loan, you can call me if you don't already have a real estate agent.

stephanie fox
spfox@cbburnet.com
612-728-2204
0 votes Thank Flag Link Tue Nov 20, 2012
As crazy as it may seem, I do have a couple lenders that WILL go below 640 on an FHA. I agree that credit repair may save you more money in the long run, but it does take time. If you want a local credit person, Tim Molgren does an Amazing job and isn't that expensive. His number is (952) 746-3322 and he is in Bloomington. If you have to buy a home and you are prepared for the process, let me know and I can take you down that path.
0 votes Thank Flag Link Tue Nov 20, 2012
Bchillin,

Thanks for posting the question to our Q & A....

I just spoke with my top loan officer and he said that he not only cannot, but does not know of one lender out there that can go below a 640 score for FHA. He can go down to 600 on a VA loan, however. And I don't want to assume you can only do FHA, but wanted to let you know that. He did state that FHA itself does not have the requirement, but all the lenders - big and small - make that decision as to their minimum score.

That said, I have another idea for you if you cannot do a VA loan. I have a fabulous company based out of Iowa that I and most people I know refer their buyers to when they simply need to get their credit score jacked up a bit. And they are one of the best companies to work with and very, very reasonable. They will walk you through everything and for people that cannot get credit cards due to their past....they will even supply them with the sources to get the credit cards needed to do the program. And these are guaranteed.

I have had clients that just went through a foreclosure, short sale or bankruptcy and watched them jack the score up from 525 to 675 in a short time. But you must work their program the way they tell you to. So if all you need to do, Bchillin, is get your score up from 617 up above 640, that is something you should be able to do in short order.

I actually just referred two people to this company today and I spent quite a bit of time with the main gal down there today updating all of my information, brochures, etc. So right now I have everything up to date. So if you want to click on my website below and give me a quick call or shoot me an email, i can get that over to to you. I make nothing for the referral, but love helping people get their scores raised. I would recommend, however, that you give me a call so I can explain what they do and answer any questions you have.

I look forward to helping you out,

Mark
0 votes Thank Flag Link Tue Nov 20, 2012
Has your loan officer talked to you about credit repair and/or something called "rapid re-score?" You can often improve your credit score significantly in a short period of time by paying off select items and have your credit re-scored. If your loan officer doesn't offer this help, seek one who does.
0 votes Thank Flag Link Tue Nov 20, 2012
Bchillin,
You need a little credit repair time out. Minimum scores on FHA are 640+. For banks to loan you money, you need to prove to a lender that you can pay your bills. They go by your history. If there is bad credit, it doesn't repair itself like a broken arm. There is some work to do.

First, you'd want to get a copy of the report and see what's up, and what's down that you can bring up.
I'd recommend that you check out http://www.unitedcreditconsultants.com. There is good info on the website, and you can call in for a consultation. They can have you packing up and moving in a few months, and give you the tools to take charge of your credit instead of it running you. Then you'll have a lot more options and sleep better.
0 votes Thank Flag Link Tue Nov 20, 2012
I could look at it, but keep in mind with the 617 credit score everything else is going to be scrutinized by an underwriter. You need to have NO job gaps in the last 2 years, you are going to need to have at least 3.5% of your own funds to put down that have been in an account for at least 2 months, you will need to prove you have paid rent for the last 12 months on time, they may ask for cable, cell and utility bills. There is a super high risk of default the lender will take buy closing your loan, so the underwriter will be critical of the file. If you are OK with this call me 612-516-5626.
0 votes Thank Flag Link Tue Nov 20, 2012
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