Home Selling in Columbus>Question Details

Pkms22, Home Buyer in Columbus, OH

can you get a home loan with a combined credit score of 521?

Asked by Pkms22, Columbus, OH Thu Sep 24, 2009

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No. On one hand, your score might be that low because of your credit history. If so, then ooops! But it could just be that low because you already have a "high debt ratio" (you owe a lot of money on various cards, loans, etc - vs - your income level (ability to pay over time).

If you don't already have a recent free copy of your credit report, then please get one. You need to know what's on there so that you can make a plan to improve your score. And then someday you can think about buying a home.

Here are a few really quick tips to improve your score. This won't be comprehensive but a nice starting point for you:

1. Never ever be late with any payments. It's very important that you have a good payment history, even if you can only afford sometimes to pay the minimum.
2. Pay off all credit cards, doing more so for the one's with a higher interest rate (reduces your finance charges)
3. Do NOT cancel your existing credit cards. This will hurt your credit. Ok, it is possible that you can have too many but for now this rule applies
4. If you don't have any credit cards, that's really bad for you. It's also not great if you only have 1 card (it's not enough credit).

Ideally you should have 3-4 cards, use all of them regularly - just a bit - and always pay them off every month. You could use one card for gas, another at the grocery store, etc.

What you really want to achieve is to get your score above 720. 740 or better is ideal. Otherwise, even IF someone gives you a loan, they will charge you a higher rate and you'll pay a lot more over time. Good credit is a wonderful thing to have!

You can always Google for information. It's all out there on the Internet for free!

Good luck!
0 votes Thank Flag Link Sat Dec 12, 2009
No, sorry, you can't..... nor should you.

What you need to do is work on that score, and do what you have to, to get it up....save some money and pay off any debt before you take on more debt .......get your finances in order before even thinking of buying a home. Owning a home is most costly than just paying the mortgage and taxes.

Best wishes...........
0 votes Thank Flag Link Fri Dec 11, 2009
Do you think that credit score is trying to tell you something?
0 votes Thank Flag Link Fri Dec 11, 2009
call this number 888-FHA-2BUY they can help you do a rapid rescore. It isn't rocket science, however, the program will help you determine what items to pay off first and scan your report for errors. Chances are if you have a 520 you probably aren't financially fit enough to buy a home yet. Unless your income has gone up or there are other compensating factors. They can take a look for you. As far as private financing or rent to own be VERY CAREFUL, you have no idea of the stories I have heard. I personally wouldn't do it. I would get my finances in order and buy the normal way.
0 votes Thank Flag Link Fri Dec 11, 2009
Unfortunately you can't at this time. What you could do is contact a mortgage lender and find out what items you have on your credit history and work on getting those handled. It may take some time but it's worth it in the end. The lowest most lenders are going is 600 points. nothing is impossible. Technically if a seller owns a home outright and is willing to go into contract with you, for example land contracts, then they are giving you a home loan at whatever credit score they choose. 600 is a good place to start for FHA loans. Conventional loans are more strict. But there are far more factors than a credit score, and you should consult a good mortgage advisor for the full picture.
0 votes Thank Flag Link Thu Oct 1, 2009
Sorry, the minimum credit score required for an FHA loan is 620. New guidelines. I hope you are working with a non-profit organization or credit repair company to raise your scores! Good luck!
0 votes Thank Flag Link Sat Sep 26, 2009
Sorry, no you can not. I understand how difficult this may be for you. You have two options. One is to wait until your score improves or two, get a cosigner who has a much higher credit score. There are programs out there that can help. I suggest get in contact with a home lender to determine path foreword. Hopefully, a good game plan can be found. Once your credit is improved, you will be able to buy the home of your dreams. Don’t give up!
Good Luck!
0 votes Thank Flag Link Sat Sep 26, 2009
No. It takes a lot of hard work to get and mantain a good credit score. but that is very important to have now a days because more than a home loan is based on it. If there is 2 buyers involved, if one of you have a good score you may be albe to get financed under that buyer. You would want to talk to your lender for a game plan to get you in a position to buy as quickly as possible. Also speak with a credit reapir person.
0 votes Thank Flag Link Thu Sep 24, 2009
PKMS I wish you could,Id have alot of buyers ,unfortunately only a handful go a little below 600.you might get with a credit repair person,if you can wait.good luck.
0 votes Thank Flag Link Thu Sep 24, 2009
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