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://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.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm
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.
You may consider the 3%-5% Sapphire Grant Down Payment assistance program which can cover your down payment and closing costs which you can close with minimal out of pocket expenses from a minimum 620 fico score up to 417k.
You may consider 5% down Jumbo with a minimum 720 fico score from 417k up to 1.5 million and 10% down from a minimum 680 fico score. If your fico score is lower then your fico scores can be raised within 3-4 days in most cases to qualify for programs, rates and terms as necessary.
These are full documented loans so you will need to gather documentation such as one month paystubs, two month bank statements, last two year tax returns, 1040's, 1099's, W2's and all schedules, copies of drivers license/ID and social security card for each applicant.
Your qualifications will be determined by your credit profile, debt to income ratios, fico scores, loan program and how much you want to invest into the down payment and closing costs.
Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
ALL Loan Programs Available
24+ Years Experience
You have to get to 620, but you also have three mos. I have seen it done a thousand times.
Give me a call if you would at 916-813-4003 on Tuesday between 10-11 am. I will run your credit for free, analyze it with you and we can put together your 3-mos plan to get you where you need to be. It can be done! I am very creative and I have seen it happen many times.
I have gone through this experience with a doctor before. A few years ago I worked with a plastic surgeon that was in the same situation. His credit had plunged because while trying to establish his career he defaulted on his school loans that went to judgement as well as some small personal debt. He paid off all of those judgements and stayed current on car loan/credit cards for almost a year. Within 10 to 12 months his credit was up to 700.
To answer your question: The odds of getting a loan? Possible but not probable unless some of those big things such as liens/judgements are taken care of.
You may be able to buy when your credit is somewhere in mid 600's but my question to you is... Does it make sense to wait just 6 months later to have immaculate credit and get the best financing terms? (When you see how much interest you pay over the life of the loan this will matter)
My advice is: If you have established yourself in your career and have the income, pull your free annual credit report and sit down with a knowledgeable loan officer that can tell you what his underwriter will need to see paid off. Pay those debts and stay current month to month.
One of the most knowledgeable loan officers I know is Dana Reed from Comstock Mortgage. He has helped many clients for me and he can be reached at 916-977-1251.
OK Sonia, hope this helped and don't be discouraged. It may seem like that uphill feeling but I'm sure you thought the same thing when you took the MCAT's and look where you are now. Anything is possible when you make an effort.
My wife and I own a condo in the Foothill Farms area near Carmichael and Citrus Heights. (Manzanita and Madison ) We want to sell it. We basically gutted the interior. We repainted all surfaces, put in a new tub in the bathroom, new flooring, new tile in entry, kitchen and dining, new carpet in living room and bedrooms, new fence on the patio. new dishwasher, new sink, new fixtures, new kitchen cabinet doors. All this, for less than you could rent one of these 2 bedroom condos. We expect to have it ready to move into by the end of this month.
The HOA has a pool for you to enjoy.
I have several preferred lenders who will work with you to get your scores up and get you into a great loan program. One of the obstacles in condominium financing right now is many of the desireable complexes do not qualify for FHA or Conventional financing due to a myriad of reasons. In those cases, I would recommend looking for Homepath eligible condos or HUD owned condominiums.
I would recommend you first talk to a lender (feel free to email me if you need a few contacts) and then work with a REALTOR who has experience and knowledge of the condominium market, my recommendation woulod be Darlene Willard who's knowledge of condominiums is incredible (primarily the reason she services our clients from SacramentoCondos.com).
best wishes in your home search
Congratulations and good luck,
Brian Young 214-797-3479
You may want to contact Rae Drake with Fifth third Bank.
I have referred her for the past 10 years to my buyers and she has always performed professionally.
She puts her clients interest first and is extremely knowledgable of the industry and the banks programs.
They have a great Doctor Program- She is even married to a Physician.
You can reach her at 352-514-1829 or firstname.lastname@example.org
Bernedette- Realtor in Vero Beach, Florida
REALTORÂ® - lic #01923240
Certified Public Accountant (CPA) - lic #103885
Hammer Real Estate Group
cell ph (916) 716-1341
I would like to a mortgage for you but I can't.
This can easily be fixed. I have a good credit repair attorney, she only charges $500 and your credit will be pretty good in about 2 months.
If that does not work for you, I have friends that I can refer you to. Of course then the payment will probably be about $500 a month or so more.
Feel free to call for a free no obligation consultation.
Another suggestion you may want to look into is a credit union or portfolio lender where they essentially make their own credit guidelines.
Hope this helps!
Best of Luck;
CEO & SR Credit Repair Specialist at
Everlasting Credit Repair
Ex-Mortgage Broker of 10+ years
Lets take a look at your credit report and see where I can lend my expertise in the area of credit score methodology.
I have helped thousands of families with the same situtation.
The catch of course = I want to do your loan for you. Give me your loan in the future for my FREE services today in terms of free consultation on how to tweak the specifics of your credit report to get the score up quickly. Deal with the devil? Hardly! I help you today; you help me tomorrow.
Send me an email or feel free to call me at 916-813-4003.
If done properly, you can fix your credit - but it'll take about 6 months to do that.
In the mean time, maybe renting for 6 months will help.
Also, I'd check out smaller banks and credit unions - who could lend based on your profession (banks love doctors) or maybe a lower LTV (to reduce the risk). Sometimes, co-signer will help as well...
Hope this helps,
Beachfront Realty, Inc.
CDPE - Certified Distressed Property Expert
Technically you have a shot at a loan even with your credit score. But best to get it above 620 for optimum interest rates. And I think you can accomplish that quickly.
Gabino Barrera JR
PrimeLending received an exception from investors, allowing me to offer mortgage loans for credit 600 and above. If you already have a 587, you most likely need a good loan officer to review your file and help you remove disputes and get your credit over a 600. We can then do a rapid rescore.
PrimeLending offers FHA loans for credit 600 and above for almost all property types, including condos. If you have questions, I would be happy to help. Jori@MortgageLoansNationwide.com
similar condos rent for $800+, I would sell mine with owner finance loan payments of $399 per month ( monthly housing expense total of $767 per month. )
That is less than rent would be.
HOA dues $245,
Property tax $55,
Condo Owner insurance $30
Sacramento County Utility Bill (Sewer & Stormwater charge) $38.
Principal and interest on seller finance mortgage: $399.
Total: $767. (this is less than rent would be)
Let me know if Foothill Farms 95841 is too far away for you.
Let's try to keep it real.....587 is a pretty low score and one in serious need of treatment. The prognosis of a full recovery in 3 months is unlikely but a reasonable treatment plan of electing to rent for an initial period, until you can rehabilitate your credit rating could bring you back to good health...and make that condo a reality.
Sounds like you have your dream job lined up and a new home on the horizons.
You have options for getting a loan with many banks and also increasing your credit score over the next three months..Simple easy steps to take too.
I would suggest you work with a local lender that you can meet face to face and review your wants and needs.
Please call or email.
I am happy to provide you with several choices for completing your home purchase.
PS. I just found the perfect house for a client last weekend that had asked this very question last summer.
It does work...and they found the house they had in mind...
Keller Williams Realty
CA DRE 01872795