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.
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.
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.
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Have a great day;
CEO & SR Credit & Mortgage Consultant of
Everlasting Credit Repair
Making home ownership more than a dream...
Retired Mortgage Banker
Your credit score of 615 is not that bad - in fact when I have a buyer in your situation I typically ask them a bunch of questions about their recent financial history, how they got their score, which credit reporting company provided the score, if they are expecting any raises or any positive changes in their incomes in the near future - in order to get a better picture of what I'm really working with to help them. Based upon this info and additional questions I'm better able to help guide my buyers to the best local lender to help them with their financing needs. There's no question that financing today is more like putting a fork in your eye... but with that said I've seen motivated people do amazing things in short periods of time with their credit scores. I do have relationships with companies which can help increase a score like yours - in fact this company regularly helps folks with credit scores in the 700's to get their scores into the 800's. There are many good reasons to do that as well which I'd be happy to share with you. If you don't already have a buyer's agency relationship with a realtor and would like my help - please feel free to give me a call on my cell: 717-542-1207.
Prudential Bob Yost Homesale Services
I have programs with scores down to 560 but other factors need to be considered.In other words, the answer is maybe ....but we need more information to know for sure.
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010
NMLS ID 143960
I think 640 is the median score you need to qualify plus other factors like debt-to-income ratio and employment.
Consult a loan officer to get a more definitive answer. This way, even if you can't qualify now, she/he can advise you on the process of getting you pre-qualified.