My husband and I are looking to buy our first home. We have his VA Certificate of Eligibility but our credit scores are both around 550, any hope?

Asked by Lizzyosu, Chandler, OK Wed Nov 16, 2011

We are looking to buy in the Chandler, OK area.

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, ,
Mon Dec 5, 2011
There is always hope, just put your house in order before trying to take on more liability, if you are struggling to make ends meet, home ownership may make things worse. Just be careful about re-building credit, many “professionals” will advise you to break the law, see more info on the link below about criminal credit repair, good luck,
0 votes
, ,
Mon Dec 5, 2011
Good morning Lizzy,

Thank you to your husband for his service to our country!

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.ftc.gov

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
Web Reference:  http://tcurranmortgage.com
0 votes
Anna M Brocco, Agent, Williston Park, NY
Thu Nov 17, 2011
Visit with any licensed loan officer to determine qualification; also see links for helpful information....
http://www.benefits.va.gov/homeloans/
http://www.valoans.com/va_facts_credit.cfm
0 votes
Dave Belyeu, Agent, Shawnee, OK
Thu Nov 17, 2011
Hi Lizzy!
Yes there IS hope! You will most likely not be able to get a VA loan right now with those scores, but the good news is that if you're willing to do a little work, your scores can often be raised enough to qualify for a loan in a relatively short time.
Much depends on your present employment, salary, and what kind of derogatory items you have on your credit report.
The only way to know for sure is to get with a lender who is willing to help you work through the issues that are specific to your situation.
We have helped several people find homes who started out just like you.
Give me a call and let's get started!
405-808-2100
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