Home Buying in 92570>Question Details

Renejr3466, Renter in Perris, CA

i want to buy a home but i have poor credit can i still qualify

Asked by Renejr3466, Perris, CA Thu Dec 6, 2012

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You may qualify for CHF Access half percent down payment program with a minimum 580 fico score for a rate approximately under 4% on an FHA 30 yr fixed rate and if you have a fico above 700, you will still get a rate below 4% on a 30 yr fixed rate loan. It is only about a .25 difference. Most credit can be repaired in 3-4 days in most cases. I say approximately because the rates vary daily but still have not been above 4% on a 30 yr FHA fixed rate loan.
I specialize in Under 640 Fico Score Loans and offer credit repair at no cost to raise fico scores to qualify. It only takes a few dozen questions to qualify you in minutes.

Poor credit has a wide range of meaning? If you have a reposession, you will have to be in payment arrangements and have 3 months payments to qualify. If you have a tax lien, you will have to be in payment arrangements before eligible to qualify for an FHA loan.

Basically the last 12 months is the timeframe that is scrutinized to be able to qualify for an FHA loan and what fico you have, job stability, income, paying rent or car payments on time. Anyone can qualify to buy within the maximum timeframe of 3 years MAXIMUM because steps can be taken to prepare to buy within that time frame. If you are 30 days late on rent or car payment you will not be able to qualify for 12 months after the late payment month so if you are speaking of poor credit past 12 months period then you may be ok and qualify now.

If your speaking of lates last month, you may have 11 more months to wait. It only takes a few minutes to analyze a credit report/profile to be able to either approve or advise of what needs to be done and how soon an approval can be obtained. Never disqualify yourself or let a Bank that requires A paper client only to tell you that you can't qualify. Inquire on blogs such as Trulia and others and find out what is available that may benefit you to fill your dreams of homeownership.

Be careful for credit repair companies as well as many of them can make a mess of your credit. Some credit repair companies may tell you to stop paying your bills while they consolidate all your bills and put you on a payment plan that they make with all of your creditors. On these types of credit repair you will have to wait till one year after any 30 day late payment. Some other credit repair companies may dispute many of your accounts and as soon as you have a dispute notation on your credit report, you don't qualify for FHA financing. The dispute notation has to be removed to qualify. Many credit repair companies may ask you to pay a 2-7 year old collection that doesn't even need to be paid to obtain FHA financing in most cases.

If you of course have a Bk or foreclosure, you will of course have to wait the 2-3 yr timeframes. If you have a fico score below 580, you may not qualify for 3.5% or half percent down but may qualify for 10% down FHA. If you have any derogatory credit in the last 12 months, you will need to get your fico above 620 where the last 12 months aren't scrutinized so much. If you have a minimum 620 fico score you may be allowed up to $5,000 in collections over 12 months old without having to pay them off. If you have a minimum 580 fico you may not have more than $1,000 in collections after 12 months.

There are many variances to qualify for an FHA mortgage as it is designed to qualify folks with blemished or less than great credit scores and profile. Whether you have are an FHA buyer or conventional you will still have to pay mortgage insurance if you have less than 20% down. If we didn't have programs for low-to-moderate income and lower than A paper credit, we the Agents, Loan Officers and the whole country could go thru another depression. There is talk of the fico score requirement going up as well as loan limits being lowered throughout CA. Buyers are going to have to have 20% down or more to buy in Jumbo above FHA limit cities. This is going to lower the amount of qualified buyers out there in the market. I provide home loans of all sorts throughout CA but REFER ALMOST ALL MY CLIENTS TO OTHER AGENTS/BROKERS, throughout CA. I only sold 3 homes last month myself.

The time to buy is now with record low interest rates and home prices on the rise. Save enough for a down payment and pay your own closing costs and you will have a 80-100% chance of an accepted offer over someone that is asking for closing costs from the seller even if the seller is offering. This also applies to HUD home bidding as I won a bid a few days ago by the buyer paying her own closing costs even with HUD always paying 3% towards a buyers closing costs. Times have changed in this market with low inventory and you have to be creative.


0 votes Thank Flag Link Fri Dec 7, 2012
I've seen various versions of this question in Trulia almost every day. It find it stunning that most people would rather post a question on a website to a Realtor they don't know...instead of finding a lender, sitting down, and going through the process. That is the only way you are going to know what your mortgage options are.

The other point I'd like to make is this....If you have poor credit, fixing that should be your top priority. Only by having good credit will you be able to take advantage of the low rates currently available.

Poor credit usually comes from not paying other debts, having unpaid credit card balances, an erratic history of paying off debts, etc. You might not appreciate this, but you'd be wise to pay off these back debts first before incurring something as large as a mortgage.

All the best.
0 votes Thank Flag Link Fri Dec 7, 2012
Owner Will Carry is for you. Usually 20% down and 6% for 20 or 30 years.
0 votes Thank Flag Link Fri Dec 7, 2012
Hello Renejr3466, Yes, you may qualify for CHF Access half percent down payment program with a minimum 580 fico score which can also contribute towards your closing costs as well.

I specialize in Under 640 Fico Score Loans and offer credit repair at no cost to raise fico scores to qualify. I can usually raise fico scores within 3-4 days in most cases as I work directly with the bureaus. If you have a fico between 500-579, you will need 10% down to go FHA. Here is a link to a flyer, maximum income limits and a needs list to gather for processing a loan approval. It only takes a few dozen question to qualify you in minutes.


Sheryl Arndt, Real Estate Broker – Sr. Loan Officer CA only
REO & Short Sale Specialist
20+ Years Experience
DRE# 01140252
NMLS# 297251
0 votes Thank Flag Link Fri Dec 7, 2012
contact Citywide home loans. They specialize in helping folks in your situation
0 votes Thank Flag Link Thu Dec 6, 2012
Dear Rene Jr,
You may be able to get a loan with a low credit score with in reason say 640 for FHA loan; however other factors must be looked at (income,debt, credit worthiness,your lender will discuss these matters with you). But if your score is very poor, you should not set yourself up for failure. Should you go to a lender and find that you are not able to get a loan at this time, ask what stopped you and start working on that. Also ask your lender for a credible debt counseling agency. Put yourself in the most favorable light and get what you deserve and want. Don't settle for less!
Thanks for question and take care!

Doris J. Bailey, GRI, AHWD, Broker
0 votes Thank Flag Link Thu Dec 6, 2012
How poor is your credit? I have known people to file BK and still qualify for a loan after their discharge.
0 votes Thank Flag Link Thu Dec 6, 2012
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