Credit Score in Memphis>Question Details

Kim, Home Buyer in Memphis, TN

LOW credit score of 499.... how can I buy a home?

Asked by Kim, Memphis, TN Wed Mar 4, 2009

i have litle to no credit car note (last late 12/08) and deferred student loans I currently paid off all my collection debts which totaled close to 5000. I really would love to buy a home but everywhere I apply says it will take at least 1yr before anything can happen. Any suggestions or help on how to quickly clean my credit up to buy a house sooner?

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If I have a terrible credit score can I still buy a house?
0 votes Thank Flag Link Thu Nov 29, 2012
you should call the lexington law firm
0 votes Thank Flag Link Tue Sep 25, 2012
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.

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.

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
0 votes Thank Flag Link Sun Apr 29, 2012
repai = repair ....................................................
0 votes Thank Flag Link Wed Mar 4, 2009
Kim, I'm a big believer in local contacts.

For example, have you considered a local Gov. sponsored homebuying program
They provide you with information about local resourses and usually are attended by representatives from the banks, RE agencies and local programs. It might give you a chance to make contacts that will listen to your situation and help. They usually have credit repai resources.

Best of luck, Dunes
0 votes Thank Flag Link Wed Mar 4, 2009

All of the answers so far have some good thoughts. I have dealt with a number of Lease/purchase deals and they usually will check you credit as well. The best advise I can give you is to set out a plan to improve your credit score. If you need help in doing that I suggest that you check out the website This is a excellent program that has had many success stories.

Gerald Williams
Affiliate Broker
Mortgage Loan Officer
BenchMark Realtors, LLC
BenchMark Mortgage, LLC
0 votes Thank Flag Link Wed Mar 4, 2009
Gene is right there are some unconventional paths to home ownership (lease to purchase and seller financing) but both will require some cash up front. If you have cash you can look at these options if not you will need to wait until your credit improves.
0 votes Thank Flag Link Wed Mar 4, 2009
Today there are very few FHA lenders who will approve a loan with a credit score between 580 and 600 so with a 499 you have some work to do and it may take a year or so. You need to work hard not to have any more lates and start paying down any thing you still owe. A mortgage professional can put you in touch with a good credit repair company if that is the route you want. They might be able to speed up the process some but it will cost you some money. Don't open any more credit accounts and if possible put some money in the bank. Hope this helps a little.
0 votes Thank Flag Link Wed Mar 4, 2009
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