There's some good advice already posted here, but the best advice I can give you is to talk to a lender who works with buyers whose score are in need of some repair before you start paying off your debt. There are ways of doing it that will be MUCH more effective in raising your score more quickly. If you follow a good plan you can improve your score significantly within months. I have lenders who work with people with scores of 600 or so.
Best of luck, and give me a call if I can help!
Keller Williams Heritage
2338 N. Loop 1604 W. - Ste 120
San Antonio, TX 78248
Most Lenders require a minimum credit score of 640 in today's lending environment, although some Lenders will lend on a 620 credit score. While your score is not so terrible, it is unlikely you could be approved for mortgage financing with that credit score at this time.
AND, if you meet a mortgage professional claiming to assist you with this low score, turn and walk away. Your score indicates there are serious issues on your credit history that you need to address before you take on the responsibility of owning a home and paying a mortgage. I strongly recommend you take the time to put your financial house in order before you take on the challenge of homeownership.
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. https://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.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.
Once you get your credit in order then you can focus on buying a home.
Best of luck to you.
REALTORÂ® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o 512.669.5599 m 512.633.4157
firstname.lastname@example.org | http://www.AustinListed.com
The only "Lenders" that will take a 550 are "Hard Money" lenders and they will want to see you buy a home that has a ton of equity already in it, or you put a huge down payment down.
You can do an FHA loan down to a 580 with 5% down, provided you have some reserves set aside either in a savings account or a 401K. I have a great lender that pulls those off all the time..
But honestly.. you are much better working with someone who can do some credit clean with you... and I have a company that I have sent people to for a very long time, and the results have been flat amazing! They are very inexpensive and their work is amazing..
I would recommend getting with those guys, get your scores up, and go get an solid FHA approval where your interest rates will be around 3.5% fixed and you will only need about 3.5% down... Its not very hard to get from a 550 to a 620... I see it happen every day.
Give me a call, e-mail or text, and I'll guide you through it.
Jason C Campbell
Option One Real Estate
You guys can close and fund 550 FICOs? Great..... I will send you a lot of business!!!!!!!
I have to work with the client and find out why the score is low and coach the client in ways to improve the credit score. Takes a little time sometimes.... Sometimes it is pretty quick.
Do you always say YES.... CONTACT ME?!?!?!?
Open Mortgage Home Lending
9514 Console Dr. Ste.100D
San Antonio,Texas 78229
210-201-8177 E Fax
And still have a 550?
Do you have a credit report we can look at together?
I am surprised the score is that low with the 2 very positive trade lines that weigh heavily in the FICO scoring