I have a 604 credit score, my fiancee is in the mid 500s. We both have jobs. Can We get financed on a mortgage?

Asked by Faye, Farmington Hills, MI Wed Mar 13, 2013

My fiance has been working steadily for 10 years with a short stint on unemployment about 1.5 years ago. I have been unemployed for about a year -- I am a full-time college student -- but am now working again. Our approx. combined income is about 35k a year but he works in sales so it is only an average. We have some debt (I am paying mine off next month). We are hoping to be first-time home buyers. No previous bankruptcies or mortgages. Can we get financing, without having to pay out the nose in interest?

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lendersnetwo…, Agent, Plano, TX
Tue Oct 22, 2013
We help people who have low credit scores and match you with a lender that has a loan product for you. 580 credit score needed for FHA and 620 for conventional with 3% down.
1 vote
POETICLADY12, Home Buyer, Farmington, MI
Sun May 19, 2013
1 vote
, ,
Tue May 14, 2013
Good afternoon Faye,

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
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
1010 Northern Blvd. Suite 234
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services

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1 vote
A. Edwards, Mortgage Broker Or Lender, Bingham Farms, MI
Thu Mar 14, 2013
There are a lot of variables in your situation. The days of paying high interest in order to offset negative qualifying issues are long gone. The guidelines today have made it pretty much a black n white you either qualify or you don't. Based on what you shared it's uncertain whether you'd qualify. I'd be happy to help you analyze your situation. If you qualify now, great, and if not I will tell you exactly what you need to do to qualify. ~ Chuck (248)703-9262
1 vote
Russ Ravary, Agent, Commerce Township, MI
Thu Mar 14, 2013
I don't think you will be approved, but call a loan officer. You are going to have to start paying your bills on time and get his score back upi.
1 vote
Melinda J. R…, Agent, Grand Rapids, MI
Wed Mar 13, 2013
I suggest that you call a loan officer and have a conversation with them. I am not a loan officer, however, I think those scores will be too low for a traditional lender. If one lender says no, then ask if they know of any banks/mortgage companies or credit unions that accept lower scores. You might need to find a hard money lender.

The other thought is, if you think that there are errors on your credit that should be removed, it maybe worth it to call a company that helps assist getting the errors off your credit. I just had someone who had an issue on his credit. He hired a company to work with the credit bureaus to have it removed. This is unusual how high his score went up, but it did go up 130 points! Crazy Amazing! Feel free to contact me through my website http://www.GoMelinda.com and I can give you a name and number of a company that does a great job with this!

One other piece of advise. You may want to only have one lender pull your credit. Get a copy of your credit report and then if you speak with other loan officers, show them the report you have. Getting credit pulled, will pull your score down.

I hope this information helps! Best Wishes!
Web Reference:  http://www.GoMelinda.com
1 vote
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