Home Buying in 92545>Question Details

Josh Tillman, Home Buyer in Washington, DC

my credit score is a 540 is it possible for me to buy a 200000 home i make 65000 my wife makes 45000 just had some bad times finding these jobs

Asked by Josh Tillman, Washington, DC Sun Apr 7, 2013

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9
John,

Do yourself a favor, rather than trying to figure out how to buy with bad credit and have to muster up $20,000.00, find yourself an experienced Loan Officer who can help you work through the issues and put you on a plan to purchase a home with the best possible chances. I had a man call me with over $35K in child support arrears and over $14,000.00 in bad debt which included collections, charge-offs, and a past unlawful detainer/eviction. He guy had serious issues to overcome. I put that man in a home this past Xmas. The reason is, I convinced him that those blemishes on his credit report will not just disappear, they have to be worked through. One at a time, either getting right with the Child Support, offering and settling debt, or disputing old collections, etc. Either way, it has always made more sense to open the closet, bring out the dead, and bury the bones. If you don't, you run the risk of never being in a position to buy your family a home or these things will surfacing later. You can go to my Profile and read some of my Blogs about credit or feel free to contact me. The truth is I was once in your shoes, I have been there done that. I have lived through some tough times in my past. If I can go from a 540 credit score to 778, then you can to. Just takes some soul searching, planning, and a some elbow grease.

Best of Luck!
Web Reference: http://www.AFN-Loans.com
0 votes Thank Flag Link Sun May 5, 2013
Josh, what you need is a knowledgeable mortgage professional who can do more than summarize a news feature by CNN or FOX :-) I work with Primary Residential Mortgage, one of the nation's largest residential lender and we have a program specifically designed for homeowners with less than perfect credit (scores as low as 500) and low rates too. Do check out the link below:

http://primaryresidentialmortgage.com/loan-products/fha-choi…

Also before you pay off any collection accounts, debts, etc. talk to a professional and see if paying off these accounts / closing them out will actually help improve or hurt your credit score. Feel free to email me "svarghese@primeres.com" if I can answer any questions. There might be other options out there that are worth exploring as well. Thanks

Jay Varghese
NMLS# 183968
0 votes Thank Flag Link Sat May 4, 2013
Good evening Josh,

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.
http://www.consumer-action.org/

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.
http://www.consumer.ftc.gov/articles/0058-credit-repair-how-…

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.

Trevor Curran
NMLS #40140

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes Thank Flag Link Fri May 3, 2013
Josh, you will need to work on that credit score. Obtaining a 640 credit score isn't that out of reach. If you are serious about owning a home I can help restore and improve your credit score.

Best of Luck;

Christina Solorzano;
CEO & SR Credit Repair Specialist at
Everlasting Credit Repair
Ex-Mortgage Broker of more than 10 years
http://www.everlastingcredit.com

We also have a DIY service.
0 votes Thank Flag Link Thu May 2, 2013
Josh,

You may qualify for a mortgage loan with a 540 credit score - we have products that will accommodate a less than perfect credit score. There are mitigating factors that have to be taken into consideration - such as the level of debt, minimum monthly payments on debts, if you have ever been late on your mortgage payments (if you owned a home), etc. Feel free to contact me and I can answer any specific questions. Thanks

Jay V
0 votes Thank Flag Link Thu May 2, 2013
Find a Realtor who can direct you to a lender. Go to Lexington Law. Hire them and work that credit score! get rid of any bad debt that has been cleared up - get it off your report. you would be amazed at how quick your score goes up when you are working on it with Lexington Law and monitoring your own credit score.
sally
0 votes Thank Flag Link Thu Apr 25, 2013
Your BEST option, if you're serious about purchasing a home is to get with a Realtor who knows the local area that you're interested in and can help you through the process. That's the FIRST and foremost step in purchasing a home. Check with friends and family to see if they can refer someone to you or research sites, such as this one to find a good professional Realtor. If you don't know anyone, please let me know. I can refer a great Realtor to you.

Your SECOND step is to speak withe a lender to go over your qualifications and get pre-qualified for a loan. AFTER you find a Realtor, he or she will have you meet with the lender that he or she uses regularly. This is important. If you don't qualify today, the lender can get you on the road to qualifying and advise you what you need to do to get ready.

Again, If you don't know a Realtor, please let me know. I can refer a great Realtor to you.

Good luck!

Ray Wright
Keller Williams Realty
951-354-1303
RayWright@kw.com
0 votes Thank Flag Link Mon Apr 8, 2013
My advice is to speak to a very experience loan officer at a small mortgage banker or broker and have them go over your credit in detail with you and help you quickly raise your score. There are a lot of things that can be done to quickly raise a credit score. That is your best bet. As getting a home loan with less than a 600 score today is very difficult.
0 votes Thank Flag Link Sun Apr 7, 2013
Finding the right lender will be key to you getting a mortgage. If you want to email me at Lon@orangehillrealty.com I can recommend a couple to you.
0 votes Thank Flag Link Sun Apr 7, 2013
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