Can we get a home loan with a 607 credit score.. We pay 675 a month now

Asked by Ksmomma07, Brookline Station, MO Mon Jan 3, 2011

We pay 675 a month for the house we are in now, we are buying the house we are renting. We are just buying for what she owes on the house so i will say between 96000-95000.. We are first time home owners, it will be under only one persons name.

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11
Jessica Bate…, Agent, Beverly Hills, CA
Tue Jul 16, 2013
FHA really isn't credit score driven, it's the Banks and Lenders that set those score requirements. There are a few lenders that go down to 580 with FHA, I personally have closed on several homes with clients around and under 600. I recommend all my clients that have credit issues to check with The Lenders Network, check them out. If anyone can get you approved they can!
2 votes
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Wed Jul 17, 2013
Good afternoon Ksmomma07,

We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.

It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.
http://www.consumer-action.org/

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.
http://www.consumer.ftc.gov/articles/0058-credit-repair-how-…

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes
Gary Busker, Agent, Springfield, MO
Tue Jan 4, 2011
With out first hand knowledge of the property I really can't tell you anything about the price. It sounds to me like it would be helpfull for us to start at the beginning of the process. A market anaylsis of the property will help determine it's value. This is important because if the asking price is too high for the property then it will not meet the appraisal. This means a bank will not lend on it because there is no equal or greater value there to secure their loan. After we know the value we can discuss the terms that your landloard is asking to make sure they are fair and agreeable to you. As for the lending, so much has changed in the last year that again we will not know for sure until you sit down with a lender and look at everything. As far as payment goes there are many factors that go in to a payment such as insurance, principal mortgage insurance, points (if you have any and elect to finance them in), down payment. Online Mortgage calculators are good for a rough idea however these extras are hard for them to figure in so often times they don't. I am not saying that the one used was inaccurate but it may be different once you get to the lender. If you would like, I would be happy to assist you step by step through the process to help you insure there are no avoidable hiccups. There is no fee involved with getting a market analysis. If you would like simply email me the address with some basic information such as basement finished, unfinished or none. Fireplaces gas, wood or none anything extra like pools, granite counter tops and such, I can get one started for you. Then at your conveinence I can come fine tune it based on the physical conditions of the property and you will have a very good idea of it's value and if it will apraise or not. Also I did speak to a lender today that tells me he is still able to deal with lower credit scores.
Gary 417-353-9189 gbusker@murney.com
0 votes
Ksmomma07, Home Buyer, Brookline Station, MO
Tue Jan 4, 2011
Well, i Know that it is a high number for a price, but we pay more now then what a mortgage calculator says someone should pay with his income. When he went to liberty bank to get a car loan they told him that he could not get a loan because of slow pay, then he asked them if he would be able to get a house loan with the credit and they said yes, but that we needed to pay 2 things off that was on his credit, which are both paid off. He has been working at the same place for over 2 years, he has been perfect on his car payment, which is what national bank said he needed to pay perfect for a year to get a loan
0 votes
Gary Busker, Agent, Springfield, MO
Mon Jan 3, 2011
Not knowing anything about the house you are looking for or its value, I have no way of knowing how great a deal it is. When it comes to purchasing first time home buyer or not, your money is always made when the home is bought. If your home is a great property at a good price and the payments are in a comfortable range for you then that is the home for you. As for lenders, there is a lot to know and I agree an educated buyer always has the advantage. However these days with truth in lending laws they will all provide you with a good faith estimate that shows everything they are doing. The rest is fairly basic, FHA government backed 3.5% down, conventional 5%-20% down, VA if you have enough time in service and USDA if the property is in the right location you can get as low as 0% down. Know what you make and what you owe, call the lenders and they will tell you what to bring in. 640 is the banks bottom score and I have not heard of them going below that because it is not their rules. Most people go with a government backed loan because the only way not to is to have 20% down or 20% equity at time of purchase meaning if you bought it for 80k it is worth 100k. Neither happens often but it does happen. So more than likely it will be government backed and that means a score of 640 or better at a bank. As of December I still knew one Mortgage broker that was able to push a lower score on conventional loans, they will also provide you with a good faith estimate so you know exactly what you are paying. The best answer is call a few of both banks and brokers and just ask questions. As I mentioned a good lender will be able to guide you in how to get what you are looking for it is what they do every day. As a Realtor, though I have a good working knowledge of lending my area is Real Estate Laws, Contracts and Marketing. Most importantly knowing when to refer you to the expert that you are looking for. If you would like a free market analysis to see what your house is worth in this market I would be happy to provide you with one. If there is anything I can assist you with such as your contract, understanding closing costs, apraisals, or inspections all of which will be required when getting a loan. Please don't hesitate to call. 417-353-9189 Gary
0 votes
12, , 80112
Mon Jan 3, 2011
Look today's bank are as leary as a tomcat>>>in other words they are very careful to lend money>>>>period:
however, 650---820 is the acceptable range in most lending institution; If you have a good down payment then confront a Bank than rather a Mortgage Co;
1. Go to where you bank or feel comfortable.
2. discuss all possible avenues in Loans...Conventional / FHA / VA /USDA
3. Do your Homework?....Get records on your Debts, Loans, Taxes etc.....
4. Maybe this house is too much for you as a First Time Buyer...
5. Always start small and affordable......

Robert DiBenerdini 417-839-6369
0 votes
Gary Busker, Agent, Springfield, MO
Mon Jan 3, 2011
Please forgive me as it is getting late. I just recognized your loan amount you said 95 thousand not 95 hundred. I do apologize. You will probably not be looking in house but either for some guidence to quickly repair the numbers you need or possibly a mortgage broker as there are still some that have investors who are willing to take on lower scores. Depending on how soon you need the loan.
0 votes
Gary Busker, Agent, Springfield, MO
Mon Jan 3, 2011
If liberty is a bank that you like and trust then ask for Don Carriker, he is at the south nation branch. I have put together deals with Don Including my personal house years ago before I was in Real Estate and I beleive him to be a good and honest guy that will shoot it to you straight and help you if he can. I gave my wife and I guidence years ago and helped us get a home and all the clients I have sent to him have been very pleased. His number is 417-875-6744 If you would like the names of some others I would be happy to help you with that also. When it comes to your contract, that is my department and if you need assistance please feel free to call on me I will be glad to help.
0 votes
Gary Busker, Agent, Springfield, MO
Mon Jan 3, 2011
My best advice is to contact a few local banks and a few mortgage brokers the difference is one sells you their money and the other sells you someone elses money, there are great uses for bothdepending on your needs. Sit down with all of them and see what they have to offer. It is not uncommon for a good lender to offer you some guidence to help you get the numbers you need. It is not all about score though some do draw a line in the dirt at a certian number. Not because they are trying to be mean but because the investors that buy their loans will not let them cross it. With the amount you are talking about you are probably going to be looking at an in-house loan with an adjustable rate but the best ones to clarify that is the lender. If you would like the names of some in the area that I am familiar with please feel free to call or email me. Gary 417-353-9189 gbusker@murney.com
I would also be glad to answer any other questions you may have.
0 votes
Ksmomma07, Home Buyer, Brookline Station, MO
Mon Jan 3, 2011
The only contract signed is for renting, our landlord wants us to go thru the the correct way, and through a bank, we talked to liberty bank a while back when trying to get a car, this was when our credit score was not a 607 but lower, and they said as long as we had 2 things on our report paid off that they would be able to help us. I dont know for sure though. I was not the person talking to them when they said this.
0 votes
12, , 80112
Mon Jan 3, 2011
You are renting i assume: who is writing the contract; make sure you review the contract to purchase very, very carefully. Check with your bank or a mortgage Company on your qualification. 607 score maynot get you finance; dont sign any contract until you get financing and follow the proper term of purchase.
Robert D 417-839-6369
0 votes
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