I have a 580 FICO & 20% to put down on an FHA. I have rehab-ed a defaulted student loan, just waiting ont he CR update. Is there any hope?

Asked by Ben, Columbia, SC Tue Jan 31, 2012

No other negative credit report issues. Purchase price range is $120-130 with 20% to put down.

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12
Jessica Bate…, Agent, Beverly Hills, CA
Sun Jul 21, 2013
I work with a lot of people who have less than perfect credit. I tell all my clients that need a pre approval to visit The Lenders Network, I have seen loan approvals from them even with scores under a 600. So if anyone can get your client a loan they can
1 vote
, ,
Sat Jun 22, 2013
Hi Jackie,

There are two reasons why I have answered a question that is over a year old.

First, if there is recent activity on a question, TRULIA puts the question up as a "recent" post due to that activity. As such, and my second reason for posting, there may be some interest in the same topic. TRULIA is a consumer-advocacy website, therefore, posting relevant information about a topic such as credit is NEVER out of sync. It's different if someone is asking about a specific property that may have been sold two years ago. But the general information I post about credit here in response to this query is certainly timely for all consumers who visit the TRULIA site.

Trevor Curran
NMLS #40140
0 votes
Jackie Griff…, Agent, Columbia, SC
Fri Jun 21, 2013
This is the same question from Jan./February of this year..........Same answers apply
0 votes
Howard Rose, Agent, Frisco, TX
Fri Jun 21, 2013
What a happened to the "Cash is King" post for earlier this morning or late last night?
0 votes
, ,
Fri Jun 21, 2013
Good afternoon Ben,

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
Larry Hardy, Agent, Columbia, SC
Wed Feb 1, 2012
Hello Ben
Yes there is hope. With the right agent you my have more options.
0 votes
Jackie Griff…, Agent, Columbia, SC
Wed Feb 1, 2012
There's always hope. I agree with all the answers you have received thus far. The mortgage companies have numerous products that are available for you. Your scores are at a point where you should qualify for a loan, plus once you have the credit report updated your scores should go up even more. So my advice, short and simple, go after your dream............... We all are ready to help you get the house you want, all you have to do is call.
Jackie Griffin
Carson & Associates
803.782-4001
0 votes
Chad Jordan, Agent, West Columbia, SC
Wed Feb 1, 2012
Ben,
All of these are great responses I've seen. If The USDA and FHA programs don't pan out our company specializes in Owner Financed and Lease Option homes. Go to http://www.3daymove.com to see a list. keep in mind some of these homes never get on our website because we have folks waiting for properties. Due tighter credit standards more people are just not able to complete a traditional purchase right now. Feel free to contact me if you have any questions. Good Luck!
Web Reference:  http://www.3daymove.com
0 votes
Page Latham, Agent, Columbia, SC
Wed Feb 1, 2012
Ben,
You may still be eligible for financing with a 580 credit score, especially since you have a hefty down payment. There are many varibles the banks consider though, so you really need to talk with a reputable lender to see what they can do. typically, you will be able to get a loan (if your income qualifies), but your interest rate will be higher than normal due to your low credit score. A higher interest rate will make your monthly payment higher. Find out what they can do for you, then decide if you want to go ahead, or work on improving your credit to potentially get a lower interest rate down the road. Of course, we don't know how long the interest rates will stay low. Call me if you want me to recommend lenders for you.

Page Latham
Real Estate Professional
Russell and Jeffcoat Real Estate
Web Reference:  http://www.pagelatham.com
0 votes
Howard Rose, Agent, Frisco, TX
Tue Jan 31, 2012
Great question, one that many want to ask but may be afraid. To answer your question straight....yes, there is help. There's several lenders here in Columbia SC that carry a FHA program that where the qualifying scores start with a 580 FICO score and only requires 3.5% down. If you are able to put 20% percent down that would be an added plus and would eliminate the need for Mortgage Insurance (MI). I would love to explain the process to you in further detail. Please feel free to contact me at any time. You may also visit http://www.homeswithhoward.com to gain immediate access to homes for sale in the Columbia SC and all surrounding areas. There you can search just like the Realtors.

Keller Williams Realty
803-767-7219
hrose@kw.com
0 votes
Stan Smith, Agent, Chapin, SC
Tue Jan 31, 2012
Ben,
There is always hope. You might have to wait for the credit reports to be updated but a good banker can look past that and help you get an idea of what you can purchase once everything has been cleared up. There are also low downpayment programs available in the city limits that might be able to help you as well. Feel free to call or email me anytime and I can talk you through the process of getting financing. I specialize in working with first time homebuyers, so I've seen it all. I feel confident you will be able to purchase a home and I would love to be able to help you do it. Contact me as soon as you can and we'll get the ball rolling.
I look forward to hearing from you.
Thanks,
-Stan Smith
803-260-0153
stan@stansmithrealty.com
0 votes
Robert D Hug…, Agent, Devon, PA
Tue Jan 31, 2012
Ben, if USDA loans apply to your area, or any other special area financing check out google and seel if the area you wish to purchase qualifys. Also some lenders may work with a 580 score since you have 20+% down payment. If financing is not possible, seek owner financing type properties.

Best of luck Ben,

Rob
0 votes
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