i have a 615 credit score and am now making 90k do to a promotion have been in the same field of business for 10 years can i get a home loan??

Asked by Pspag, Marysville, WA Sun May 29, 2011

i have been in the automotive industry for 10 years last year was bad only 49k but years prior 65-68k
i have 2 auto loans 1 for 463 a month and 1 for 301 a month good payment history on both a credit card with a 40 dollar balance i do have 10k in medical collection debt from 4-5 years ago need some help or advise

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Judie Chambers’ answer
Judie Chambe…, Agent, Marysville, WA
Wed Mar 20, 2013
Hi there,
My name is Judie Chambers and I represent Windermere in Marysville, Wa.
If you have a large enough down payment, the lenders are much more flexible
when it comes to your credit score.

Good luck!
0 votes
Jessica Bate…, Agent, Beverly Hills, CA
Sat Sep 28, 2013
Yes you can get an FHA loan possibly even conventional with a 629 score. Check out The Lenders Network they can refer you to a lender that offers a loan for you.

Good Luck!
2 votes
, ,
Mon May 30, 2011
Can you get a loan with a 615 score? Yes it's possible. Are there be better terms if you can improve your credit? Very likely there will be. Are you in a rush to buy? If not, then getting to a 640-660 will open the doors to a lot more lending sources, not just Wells Fargo (FYI never just go to a mortgage lender company or mortgage broker company.... always go to an individual loan officer who has been recommended/referred).

Were you on periodic unemployment during the down times last year? If so, that is perfect documentation to explain the lower income in 2010, and will go a long ways to getting 2010's employment income extrapolated over the time you worked (so if you made $49k over 8 months, it'd really be $73.5k for the year).

You said you made $65-68k/year in a normal year (before last year when it was bad), but you are now on track to make $90k this year... why are you on track to make nearly 50% more than you did in years past? Pay increase? Lots of OT?

Are your medical collections the only negative items on your credit report? Or are there late payments, non-medical collections, etc.?

What were you eventually planning on doing with the medical collections? If you were planning on paying them, read http://whychat.5u.com/hipltr.html before you do. Medical collections aren't a big issue when it comes to qualifying for a mortgage however... but keep in mind that medical collection agencies can mess with your credit by illegally randomly "updating" the date of last activity (DOLA it the common acronym) in an effort to get you to pay them (the worse they are hurting your scores, the more likely you are to pay them... so they think). Perhaps they already have, as 615'ish scores usually indicate negative marks within the past 24 months.

Getting your credit card to report as a $0 balance before lenders check it (this means paying it off and not using it for ~30 days) will give you a credit score boost, the higher that utilization % is right now the more paying it off will increase your scores.

How long have you had the credit card and 2 car loans for? If they haven't been very long, then you may not have a lot of "good" credit to offset the balance on the revolving credit card + the medical collections from 4-5 years ago.
1 vote
, ,
Wed Dec 11, 2013
As a rule of thumb, however, a credit score below 640 will make buying a home very difficult. A FICO score below 640 is considered sub-prime. In the past there were mortgage companies that specialized in sub-prime mortgages. Because of the challenges in the credit market over the last year or so, however, sub-prime loans have become difficult if not impossible to obtain.

A FICO score between 600 and 640 is considered fair to good credit. But keep in mind, this range of credit scores does not guarantee you will qualify for a mortgage, and if you do qualify, it won’t get you the lowest interest rate possible. Still, to buy a home aim for a score of at least 640, recognizing that other factors weigh in the decision and that some banks may require a higher score.

What credit score do you need to get a low rate mortgage?

It use to be that a score of about 720 would yield the lowest mortgage rates available. Today, the best rates kick in with a FICO score of 760. And interest rates go up significantly as your credit score drops. To give you an idea, the following table shows current rates by credit score and calculates a monthly principal and interest payment based on a $300,000 loan:
0 votes
Judie Chambe…, Agent, Marysville, WA
Thu Aug 22, 2013
Great, the first thing you need to do is speak with a lender to find out what would be the best type of financing would be best for you and also how much of a loan you could qualify for. Each type of loan requires certain criteria. No one loan fits all. For instance if you are a vet, you may qualify for a 0 down VA loan. If you have little savings, a USDA loan may work best for you. An FHA loan allows you to pay a minimum of 3.5% down. In all cases there will be some cash required but some less than others.
It's awesome that you are asking questions and not just going out and looking at homes before you
know the above things.
Once you speak to Rick Tilton, he can determine the best program for you and give you a price range, then we are ready to find your new home.
You can reach Rick Tilton with Prime Lending at 425.418.5954. He is an expert and I've worked with him for many years.
I look forward to hearing back from you!
0 votes
Mickie Barne…, Agent, Marysville, WA
Tue Jun 21, 2011
You probably could depending on the credit to debit ratio. To really know I recommend talking with a local lender who can evaluate your exact financial position and give you a straight answer. It is challenging to do so over an internet forum. My preferred lender is Steve Wilde - 425.252.5757 or stevew@networkhomeloans.com - Network Home loans in Everett, WA.
0 votes
Dp2, , Virginia
Wed Jun 1, 2011
Besides the other options (various bank loans) presented, you might also want to consider getting a property with creative financing. This option works best when coupled with credit counseling/repair and financial planning. Nevertheless, Shane eloquently stated that you'd need to be prepared to explain what happened to cause both the decrease and increase in your income.
0 votes
Tonya Brobeck, , Everett, WA
Tue May 31, 2011
I would talk to a loan office Pspag, FHA loans go as low as 500 credit score. The interest rate is reasonable & lots of homebuyers use this alternative for lower credit or no credit. Plus, from what I understand Medical collections are something that can be explained. Contact me for a great referral in this area:-) Good luck
0 votes
Jirius Isaac, Agent, Kenmore, WA
Mon May 30, 2011
What you really want to do is restore your credit so you can get a loan at a normal interest rate. I can guarantee that if you work with me, I can get your credit scores up to at least 660, if not over 700 in less then a year, maybe only 6 months. I am a broker, a loan originator, represent a credit restoration company, & consider myself a great resource. Give me a call, or email me if you want some serious help.
Web Reference:  http://www.metromgi.com
0 votes
Scott Godzyk, Agent, Manchester, NH
Mon May 30, 2011
The only person that can give you a true answer and one that matters is a loan officer, Your bets bet is to meet with a local and trusted mortgage broker, they can prequailify you at no cost, they will look at your credit plus your financials and let you know if there are any programs that you may quailify for given your specific situation, anoyone else is just guessing.


Please see my blog for a full list if tips and advice on getting a mortgage
Web Reference:  http://www.ScottSellsNH.com
0 votes
, ,
Mon May 30, 2011
Most underwriters will bust you over the medical collections. Even if they don't collections have a nasty way of becoming a problem when you can least afford it. Address them first is the safe route to take.
0 votes
Stacey Lange, Agent, Kirkland, WA
Sun May 29, 2011
Hi there! I have a wonderful lender that I recommend very highly who will gladly determine if you will prequalify you and help to determine which loan program would be the best for your situation. His name is Patrick Hernandez with Guild Mortgage --- http://www.truezerodown.com

I work as an educator for the WA State Housing Financing Commission and there is a great first time home buyer program which offers down payment assistance and would allow you (if you qualify) for a zero down program. Patrick can share with you if you can qualify for this program, or at least get you on track quickly to be in a position to purchase. He has a GREAT credit repair company that he can refer as well to assist with the $10k in debt.

I refer him often and trust him completely.....but I think chatting with a licensed mortgage broker is the best place to start.
Web Reference:  http://www.key2yourhome.net
0 votes
Dan Tabit, Agent, Issaquah, WA
Sun May 29, 2011
Your income will be averaged over the past 2 years or more to establish your debt to income, so your down year will lower what you may qualify for over your current good one.
Your score may allow you to get an FHA loan. Wells Fargo is currently offering FHA for even lower scores than yours, assuming the rest of the file makes sense.
You may want to do some credit repair, paying down any credit card balance to 1/3 of the limit and disputing any derogatory information for starters. There are programs which can do this quickly for a fee.
0 votes
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