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Rachelha83, Home Buyer in Phoenix, AZ

I was curious, what does my credit score need to look like with a foreclosed home?

Asked by Rachelha83, Phoenix, AZ Thu Apr 12, 2012

I have never bought a home before, and I am playing catch up with my credit, but I would really like to buy my kids a home... What would I have to do to get into a house like this? my credit score is around 556, bad I know... but I am curious, because this house is so much cheaper than other houses, would it be easier for me with my income ($41,000/yearly) to get financed? Please let me know

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Current FHA guidelines are a 620 score and 3.5% down.
You can also consider a lease option situation.. We offer a program that qualifies you for a mortgage, has an in-house credit repair consultants and works with you towards the purchase of the home. This program offers no money down, no up front option fees and not even an application fee.
Check us out at
0 votes Thank Flag Link Sat Apr 14, 2012
Rachelha83. Everyone is qualified for a mortgage. Just wait until your application hits the underwriter’s desk. Now the real interrogation process starts.

The truth hurts.
0 votes Thank Flag Link Fri Apr 13, 2012
Hello Rachel,

I work with a Lender that will give you an interest rate that is lower than market rate when you meet there criteria.

Please contact me if you want more information.

Have a GREAT evening!

Vivien L Biggs PLC
Prudential Arizona Properties

Check MLS for homes on my website
0 votes Thank Flag Link Thu Apr 12, 2012
Meet with a good local lender and see what they have to say. All the answers are from Realtors and a mortgage professional is the person who can tell you what it will take to get you where you want to go. After that a full-time professional real estate agent can help find a great home for you.
0 votes Thank Flag Link Thu Apr 12, 2012

There are many Loan Officers that can work with you to get your scores higher. Keep in mind that different mortgage companies work with different numbers. Some may only go down to 640, 620, 600. I had seen one at 580, but would have to see if they still offer this. So, it is in your best interest to check around.

You mention that you are playing catch up with your credit. I am not sure if you mean you are behind in payments. Most lenders will require no late for a period of time as well.

One way to raise your scores is not to have your credit cards maxed out. Only having used 50% of what you could use on a credit card can also raise you scores. A lender will also go over your debt to income ratios. So if you can't do it now, they can assist you to get into a position to do so soon!

Best Regards,


Ron & Brenda Cunningham
West USA Realty
Ron: 602-499-0694
*** Recognized in the Phoenix Business Journal as "One Of The Top 50 Realtors In The Valley"
0 votes Thank Flag Link Thu Apr 12, 2012
Your ability to obtain financing is a four-legged stool
1.Credit Score
2. Income/Debt
3. Down Payment
4. Savings
Sometimes you can get a stool to stand on three legs, but never two. As mentioned earlier, speak with a mortgage specialist. I recommend you talk to a mortgage broker AND a mortgage banker. They both have their limitations and advantages.

Doing your due diligence is very important when picking a lender (or a Realtor). Don't just pick the loudest voice with the slickest sales pitch. Ask about the "cost of the loan" and don't get sucked into the "best rate".
0 votes Thank Flag Link Thu Apr 12, 2012
Buying a foreclosure adn getting a loan is jsut like buying any house. You need to get a loan pre-approval first to make an offer. You need to be proactive to get your credit score up to a minimum of 585+ from what I have seen. You would want to bring all debt payments current, and reduce any credit card debt down to 30% of the maximum card limit for starters. You will want to get any incorrect information off your credit report. Scores can recover quickly (2-4 months).

Since we don't know the cause of the low score it is hard to guess what action you may need to additionally take.

I can give you resources to clean up your own credit score, point you to a lender, or refer you to someone that can help you for a modest fee.

Loren Hoboy-Realtor
0 votes Thank Flag Link Thu Apr 12, 2012
Hi Rachel,
It is very difficult to get financing today with a low credit score. I would advise you to meet with a mortgage broker that can guide you and help you get your credit score up so you will be in a position to buy a home. It doesn't matter if the home is a foreclosure or a regular sale, you still have to qualify.
Good luck
Lorrie Feld
Keller Williams Integrity First
0 votes Thank Flag Link Thu Apr 12, 2012
We have an FHA program as low as 600 fico right now. If you would like me to run you a comprehensive report of each agency to see how each tradeline is affecting your score please call me.The report will tel you how much it will cost to raise your score by paying down certain tradelines and how much it will raise your score per agency.
Jason Coleman
Peoples Mortgage
0 votes Thank Flag Link Thu Apr 12, 2012
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