You don't mention how much you could put down. Lower credit scores can be somewhat offset by down payment and debt to income ratio. Reality is that you probably will not be able to fix your credit in one month. However, the best way to see if you have any possibilities to work around the bad credit score is to speak with a experienced FHA lender. Most here on Trulia can recommend someone to speak with. If you are looking for someone to help guide you through the process, let me know. I offer a 1-hr consultation, no-hassle, no-obligation.
Here is some information, hope you find it useful.
For getting an FHA loan you'll need to do a full document loan and your 533 credit score may cause a problem. The first thing is to consult an experienced loan officer, here is a number you can call:
Toni Kent: 408-771-6077. She will be able to explore all the possibilities of an FHA loan with you.
Once you have a clear understanding of loan process and the loan amount you can get, consult with a Realtor and find your ideal home. I live and work in the 95070 zip code and will be honored to work with you.
My husband and I have a four bedroom house that may suit your needs in Silicon Valley.
And we may be able to work out terms favorable to all of us. We are willing to consider financing methods that include those that have been suggested by the professionals here.
Please email me at email@example.com with the subject line "I want to buy your house - maybe!" and we will talk further.
I am a realtor and a loan officer and know how to fix credit. Currently I am using two lenders that do FHA loans that are Refer / Eligible. Email me if you would like me to help.
Welcome Home Real Estate & Finance
39 California Ave Suite 204
Pleasanton, CA 94566
Making homeownership a reality.
Also, (making that much money you're probably looking at a nicer house than mine). My house is valued at $83k, and I'm getting it for $69k, so, it's not way overpriced and I live pretty much out in the boonies with the cows and the cornfields, so I'm sure there is alot more inventory for rent to own where you're at.
Only other option I had was to go with a manual underwriter, they don't look at your score, just if you've paid your bills on time for the past year (I think they just look at housing type bills mainly, because they didn't care if I paid my hospital bills or student loans). Maybe try Flagstar bank if you go that route. Hope this helps!
My name is Allyson, Linda and CJ gave you excellent advice regarding having a good lender who could help you improve your score. I suggest you get with at least 3 different lenders so you can see your options and what interest rate you qualify for ( because of your low score, your interest rate will be higher than those with a higher FICO score) approx between 6.5% -7.5% ( right now this may change in the future ) with under 5% down should be doable. But first I would chose a realtor. The reason being most good buyers agents have quite a few sources for lending and can help you chose the best for you. When I recommend my lenders to my buyers I always give them 3 with one of them being a direct FHA lender ( by the way FHA is going up to 5% down in October). I also tell my buyers to let the lender know you are checking out other lenders so he/she works to give you the best deal possisble.
Now for chosing your agent, you want an agent experienced with buyers who will take the time to show you enough properties until you find the one that fits your needs. Also they will educate you on the procees so you feel comfortable making the purchase and finally their knowledge and communication skills are such that they will negotiate for you the best deal possible.
I have the experience and knowledge you may be looking for.
You can check me out on my web site http://www.homesbyallyson.com
Also if you like you can put in your own property search or email me with your needs and wants and I can set up a search for you. my email is firstname.lastname@example.org
If you would like a phone consult call me at (408) 705-6578 I'd be happy to answer any of your questions.
Let me start with the "glass is half-full" comment. You have very good gross income. Depending on why your credit score is as low as it is, you have an opportunity to both save money towards your down payment as well as paying off some debt. It is very important to be working with a lender who can help guide you to improve your score as quickly as possible with the maximum impact. I have clients who are in a similar situation, and in 3 months there has been significant movement in their scores (over 100 points higher.)
There are many things that can affect your credit score. The lender will have a good idea what will be the best strategy, once they run your credit.
Now is a great time to seize the bull by the horns. Select a great realtor & lender to team together and work with you to create your home buying strategy. It is important to have patience, because the harder you work on both improving your credit as well as increasing your down payment/ cash reserves, the better loan you will be able to get.
I have great lenders that I work with, who work hand in hand with their clients to help them achieve their goals. If you would like a referral, feel free to call or ping me.
And, congratulations on your decision to take steps in the right direction - towards home ownership! I would be happy to be a part of your team that helps guide you to that goal.
Please call one of the FHA lenders near you. But surely, he or she will tell you that your FICO score is lower than the minimum requirement of 580. Please consult a lender first before you an agent excites you to look for a house. It will be a total waste of your time without a pre approval.
One of the programs you speak of is the Nehimiah program thru the FHA. It seems you have already talked to a lender, if not than please do. I have a great one that may be able to help you. You can call me or e-mail me.
I agree if you don't ask you won't know. Good Luck