Home Buying in Walkerton>Question Details

Jlmarts86, Home Buyer in Walkerton, IN

we have bad credit / no credit is there any chance of getting a home loan?

Asked by Jlmarts86, Walkerton, IN Thu Jul 7, 2011

dad is on ssi and has monthly income of $1162 credit score is 596 and fiance is making $9.75 per hour and about 80 hrs every two weeks averaging $2100 a month. We are trying to get 10% to put down would that help us get approved?

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This is a good time to talk to a credit counselor and a mortgage broker. Both can help you get the credit score under control while you are getting together that down payment. The main thing is to get everything paid up and start paying on time. For some basic information you might look at the blog post below in Web References.

Good luck,
Ron
1 vote Thank Flag Link Thu Jul 7, 2011
Q: We are trying to get 10% to put down would that help us get approved?
A: Yes, the more you put down the more it increases your chances of being approved. More down isn't always required though.

No credit is actually better than bad credit, because with no credit you could do this: http://www.trulia.com/blog/shanethemortgageman/2011/06/no_sc…

However with bad credit, all is not lost, because it depends on just how bad the credit is. You know your scores, so likely you also know what is on your credit report, and that is just as important as your scores. How has your past 12-24 months of credit history been?

FHA mortgages require a 500 credit score, and most FHA lenders minimum score requirements tend to be 600, 620, or 640 - with FHA anything less than a 580 score requires a 10% down payment, otherwise just 3.5% down is required.

VA mortgages have no score requirement, but VA lenders score requirements are similar to FHA's. VA is 100% financing for Veteran's.

USDA Rural Development mortgages are 100% financing, and have no score requirement - however if you go through a lender most will have 620 or 640 minimum scores, but if you go Direct to USDA they do not have any minimum score requirements, but it takes a little bit longer - Walkerton is in an eligible area, La Porte and South Bend are not. http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do to check the eligible areas and also if your income is not too high/within eligibility limits as well.

Fannie Mae & Freddie Mac mortgage programs require a 620 score, however with less than 20% down you will likely need at least 660-680 scores.
1 vote Thank Flag Link Thu Jul 7, 2011
First you must resolve the credit issues. Go to the local housing group for credit counseling. Your credit must show a willingness to pay your bills.
1 vote Thank Flag Link Thu Jul 7, 2011
When you work with a local lender and Realtor they together can show you how to get your credit score up. this is easier to do than you think. But knowing what to do is the key. It sounds like you have enought income to do what you want. I would be glad to help you with this.Please call me at 574-586-3363.
Flora Pat and Associates 574 586 7653
0 votes Thank Flag Link Wed Feb 13, 2013
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