Prospect Mortgage is one of the few direct lenders to offer an FHA 580-639 FICO loan program. Credit profile is a major factor in a mortgage approval. Generally, there should be no late payments, new collections accounts/charge-offs/liens/judgments in the last 12 months. It is required that all open collection accounts must be paid in full if their cumulative balances exceed $1,000.
The 3.5% minimum down payment can be from the borrowers own funds or it can be gifted from a family member. Two months of reserves for the PITI (Principal + Interest + Taxes + Insurance) payment + HOA Dues will be required. This must be from the borrowerâ€™s own funds and not a gift.
Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of lending experience.
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePathÂ® | HomePathÂ® Renovation | HomeStyleÂ® Renovation | VA | USDA | GA Dream | Jumbo Financing.
My suggestion if you're determined to apply for a loan now is to find a mortgage broker. Ask around for recommendations and remember, you can look for pre-approval with multiple brokers/banks. I had a few going during the home buying process.
First I obtained my credit reports and looked them over for inaccuracies. The reports are free once per year so take advantage!
I took note of the negative marks on my reports. Anything that is in default and has been paid/forgiven falls off of your report in about 7 years. If it is unpaid and in collections, take care of it as soon as possible. I called companies and negotiated payment plans. Another tip is to try paying off your smallest debts first, working up to the largest, without defaulting.
If you need to, then work with a debt consolidation company. I was able to avoid this, but I spent a lot of time of the phone in negotiations and not everyone is up for that task.
I canceled all but two of my credit cards. Remember, the more credit you have available, the more potential debt and that can lower your score. I used my credit cards, but paid them off in full each month to build up good credit without debt.
The process took me years to complete, but my now excellent credit score enabled me to obtain a loan without any issue and get a fantastic interest rate. It was all worth the effort.
No traditional mortgage programs are going to go that low on a credit score. HUD is the most aggressive and that is only on FHA. HUD has set their minimum credit score for an FHA mortgage at 580+ with a 3.5% minimum down payment.
While HUD does technically allow down to a 500 credit score with at least 10% down, I am not aware of any mortgage companies actually offering that program. Buyers with that low of a credit score are almost always going to have recent late payments. If they didn't, then their credit score would not be that low. It's all about risk of default and that risk increases greatly the lower the credit score goes. F their is a lender actually doing an FHA under 580, they are going to have so many restrictions that no typical buyer is ever going to actually meet the criteria for it to actually close.
I have lenders that can get you finance in the 500's. I'm the market expert in assisting you with your home purchase in South Fulton/Camp Creek. I would the oppurtunity to help you purchase your dream home.
Unfortunately, most lenders are weary to work with buyers who have credit scores less than 620. However, please don't be discouraged as there is always someone out there willing to help you procure your home! I have a great business relationship with a lender who works with buyers with credit scores as low as 580. I see from your question that your score is in the high 500's; if that's the case, I strongly believe I'll be able to make your dream into a reality. Please feel free to contact me (my direct information is below), and let's see if I can be of assistance in your search!
(404) 494-6986 (cell)
(770) 964-3125 (work)
get your financial ducks in order first..then look into buying a home.
The only suggestion I would make is... do not close out credit cards - your score can/may go down if you do that.
It is better to keep those lines of credit open and just NOT just them - it shows you know how to manage your finances, and not use up credit just because you have it available. If you have a high percentage (and you can't get higher than 100%!) of unused credit, that will help your scores increase.
Now, if you don't trust yourself to let that credit card sit, unused, then that's another story!