my credit score is 613, all my accounts are 100% on time but i only have 4 credit accounts, how much trouble will i have getting a mortgage?

Asked by Gatr796, Tampa, FL Tue Apr 3, 2012

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23
, ,
Wed Jul 17, 2013
Good afternoon Gatr796,

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

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
3 votes
Jessica Bate…, Agent, Beverly Hills, CA
Tue Jun 9, 2015
You can get an FHA Loan with a 580 credit score. Check out The Lenders Network they've helped a few of my clients with lower credit scores find a lender to approve their loan.
2 votes
, ,
Sat Aug 10, 2013
Wow Spamming Trulia Jessica. Same Answer on 100 different posts

Way to offer great insight to the Trulia community.
1 vote
, ,
Tue Jul 23, 2013
This loan can be done FHA. If you would like more info contact me in Tampa. 727-365-3133
D.Blockel@MyBBMC.com
1 vote
Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Wed Jul 17, 2013
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will not happen at that score without at least 10% down on FHA

==
1 vote
Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Sat Jul 14, 2012
Start packing!

Yes, buyers in your situation can buy.

What sales price home would make you happy?
1 vote
Lynn Brock, Agent, Sarasota, FL
Fri Jul 13, 2012
Gatr796, If your accounts are 100% on time then you have other compensating factors that are dragging them down.

1.) If you have a revolving credit account, and the maximum limit is $5000 and you carry a balance of $5000, then this will impact your credit scores.

2.) If you have a revolving credit account and you carry a balance due of 50% or more (based upon your maximum limit, then this can impact your credit scores.

3.) Too many new credit accounts.

4.) If you recently paid off/down an account this may drop your credit scores.

5.) If you had a prior bankruptcy which no longer shows on your credit and you have any slow pays this can affect your credit scores.

6.) Although you pay all of your accounts on time, what you owe (based upon all of your credit accounts) may be too high.

If you truly pay your accounts on time, 613 is a low score, there is something else impacting your credit history. You need a full trimerged credit report complete with scores, work history, address history and prior accounts.. This is approximately 20 pages.

Your question will prompt, lenders, mortgage brokers and credit repair specialists to answer you. This is a good way to find someone to help you.

Good luck,

Lynn Brock
Brock Realty Inc
941.313.1234
http://www.brockrealty-inc.com
If you'd like to search the MLS like an agent in real time, you can visit our website and sign up for a free Listing Book account. You will be able to change the search criteria to suit yourself and received morning reports regarding new listings, price changes and recent pendings.
1 vote
, ,
Tue Jul 14, 2015
Did you have success in getting pre-qualified? your score is a little low however the approval is best on other comments. that being said, with the debt all being maxed out it could raise the credit risk. my advice would be to let a licensed Loan Originator do a full application to determine if you qualify and if not what is going to be needed to get you in a position to purchase a home.


George Dudley
Branch Manager
Office: 813-257-9033 Ex.3202
Cell: 561-420-2816
NMLS ID: 324554
Email: gdudley@ahmcloans.com
Website: https://gdudley.ahmcloans.com
0 votes
Jeri Patrick, Agent, Pooler, GA
Tue Jun 16, 2015
I would contact a local lender to see if they can help you and point you in the right direction. Best of luck
0 votes
Robert Krop, Agent, Frederick, MD
Sun Oct 12, 2014
Check with a local lender. Each lender is going to have different criteria required.
0 votes
Elliott R. O…, Agent, McLean, VA
Sun Apr 15, 2012
You need to speak with a licensed loan officer that can analyze your credit report to see how to get those scores up.

In this situation I would first look at your credit card balances in relation to your credit limits. An easy way to get your scores up is by paying down your balances. You will see an improvement when you pay your balances to just below 50% of what your limit is but you will see the most improvement when you pay them down to just under 30%. I have to stress, pay them down, don't pay them off completely and don't close them.

Normally it takes 30 to 45 days for the update to take effect on your scores but I can get it done in 3 to 4 days so you don’t have to wait. We have credit analysis software that allows me to run hypothetical scenarios with your credit report to see what needs to be done to improve your scores in the least amount of time.

You need to find a reputable licensed lender in your area that can do the same.
0 votes
Alma Kee, Agent, Tampa, FL
Sun Apr 15, 2012
Also try credit unions. http://www.GTEFcu.org is a good place to start. They often lend their own money and will make decisions based on your specific situation (and their risk with lending you money) rather than having to fit you into the very specific guidelines to allow them to immediately sell off your mortgage to Fannie Mae, Freddie Mac or other investors the next day after you close.
0 votes
Margaret Has…, Agent, Tampa, FL
Sat Apr 14, 2012
FHA loans are not only credit score driven. Talk to a lender who can tell you how you fare in your particular situation.
0 votes
Alma Kee, Agent, Tampa, FL
Wed Apr 4, 2012
Also this website created by a highly respected, Ivy League Professor has a wealth of info about mortgages:

http://www.MtgProfessor.com
0 votes
Alma Kee, Agent, Tampa, FL
Wed Apr 4, 2012
http://apps.floridahousing.org/StandAlone/FTHBWizard/FTHBWiz…

One you pay down some of your credit balances your score may rise. If you need downpayment assistance, the State of Florida has a bond program to give you $5k. See the link above.

You will need to work with a State Approved lender so I would suggest you get advice from an approved lender.

All the best,
Alma Kee
http://www.SoldOnTampa.com
0 votes
Charles David…, Agent, lutz, FL
Wed Apr 4, 2012
Here is something that you might need to check into..The accounts might be maxed out or close to the limit which is why score is low. All they would have to do is pay the revolving accounts down and score will go up and they should be fine.
Call me or email me so we can look into this. atdds2000@gmail.com
0 votes
Tony Delgado, Agent, Tampa, FL
Wed Apr 4, 2012
There are several lenders that offer loans at a the currrent market interest rate with scores down to 580. at 613 you should be able to do a normal FHA with 3.5% down with 2 that I know of. Contact me if you would like to discuss further.

tony@tampabaysagent.com
0 votes
Erek Kirsten, Agent, Tampa, FL
Tue Apr 3, 2012
You' may be much better off getting a lease-option for all the contortions a traditional lender would put you through, and then in the end deny your loan with little explanation. I am also a mortgage broker and I see it all the time these days, even to people with 750 credit scores. With a lease-option, you can build equity at a rate that puts traditional loans to shame. Since your not locked into debt, if the property goes down in value you can just walk away without any consquences to your credit, or re-negotiate a lower price. If the value goes up, it all belongs to you! How many people today do you think wish they were in that position? That is just some of the power of the option. Limited liability can be another. I'd be happy to discuss your options, they are many.
0 votes
Bill Szydlow…, Agent, Tampa, FL
Tue Apr 3, 2012
YOU WILL HAVE TO GO WITH A LENDER THAT DOES NOT ADD TO THE REQUIREMENTS OF FHA. WE CAN HELP YOU THERE.

BILL SZYDLOWSKI
0 votes
Alain Picard, Agent, Puyallup, WA
Tue Apr 3, 2012
Some lenders won't approve you with a 613 because a lot of lenders will want to stay above 620 however there are lenders that will approve you with a score of 613 so you just have to ask around. Your income and Debt to Income ratio should be ok. I know of a lender that will do FHA with a credit score as low as 520 however they aren't licensed in Florida. 613 isn't to far from 620 and there are a lot of things that you could possibly do that would bump your score up so really talking with a lender would be your best bet.
0 votes
Dan Tabit, Agent, Issaquah, WA
Tue Apr 3, 2012
Gatr,
Your score may not eliminate you from getting approved, but rates are adjusted based on scores for many programs. If you are 100% on time, the reason your score may not be better could be due to the outstanding balances owed on your accounts. By paying down your balances to 1/3 or below their high limits, you may see a nice bump in your score.
Depending on how soon you want to purchase, you can do this right away and wait until the data is updated naturally, send in updated receipts to one or two reporting agencies and request they correct the file or pay a service like Rapid Rescore to do this for you. The time difference will be a couple of month’s naturally, a few weeks if you send in the receipts or a few days if you hire Rapid Rescore.
The savings on your rate over a few years will more than justify doing this either way you choose.
0 votes
Gatr796, Home Buyer, Tampa, FL
Tue Apr 3, 2012
it wouldnt let me write more but i make 44000 a year and debt to income ratio is 24%
0 votes
Brian Miller, Agent, Tampa, FL
Tue Apr 3, 2012
It is not always just the score, but with a 613 you should be able to get a loan. Give me a call and I can set you up with some great lender references who can help you through the process.

Thanks,
Brian J Miller
Keller Williams South Tampa
813-484-4813
http://www.TheMillerPropertyGroup.com
0 votes
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