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Asked by T, Florida Thu Sep 10, 2009

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Jessica Bate…, Agent, Beverly Hills, CA
Tue Jul 16, 2013
I'd say pretty good if you use the right lender, have the down payment and you can show that financially you are in a good position. Talk to a broker first that actually knows credit, paying off debt may not be necessary depending on the accounts and how old they are. I recommend the lenders network, if any company can get you a loan they can. I have had clients with under a 580 score get approved... Brilliant real estate minds with a ton of lending contacts. Tell them I referred you!
0 votes
, ,
Sun Apr 29, 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
, ,
Thu Sep 15, 2011
I assist FHA borrowers in FL (and nationwide).

PrimeLending received an exception from investors, which allows me to offer FHA mortgages for credit 600-640. 30 day closings available. Excellent rates, low fees.

Jori Stern
Sr. Loan Officer
PrimeLending, A PlainsCapital Company
(877) 399-6539
0 votes
Kevin, , Texas City, TX
Fri Sep 11, 2009
Qualifying for FHA loan with a score less than 600 is somewhat difficult in today's market... Some lenders can work with you but they can charge higher interest rate... Also, you must meet other conditions required to qualify for FHA loan....
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Vickie " Vic…, , Mount Laurel, NJ
Thu Sep 10, 2009
Hi T,

ANYTHING is possible, but remember why we are in such a poor housing market right now in the first place.
When Mortgage Reps approve loans for people who cannot pay the mortgage, or approved them just to get more business,many people were forced to default on their home loans and have lost or are currently in the process of losing their home! The guidelines are MUCH stricter for home buyers now, but FHA is meant to be the safe haven, so to speak for many home buyers who otherwise would not have been able to qualify for a loan,due to the monthly payment being too out of reach for them, FHA has stricter guidelines about inspections prior to the home being sold,repairs that MUST be made before they will approve the loan,etc. which is GREAT for the buyer! It used to be that many agents would shy away from FHA properties due to the added restrictions and length of time it takes to close on a FHA home. Anymore, FHA is gladly accepted and is the way most home buyers are going now, so if they want business, the agents have to follow in tow.
Make sure that whoever represents you as your buyers agent has YOUR best interests at heart,NOT the size of their wallet! There ARE still a lot of honest REALTORS out there who will put YOUR needs first and your satisfaction,so don`t settle for less!

If a deal seems too good to be true,it probably is! Make sure whatever Mortgage company that you choose GUARANTEES that you will be given the amount they quoted you as far as interest and monies necessary for you to close at the settlement table go! There have been MANY companies lately that will tell you one thing,then when you are at the closing table,tell you you need X amount of dollars extra because of this or that. It can many times be thousands of dollars more, and guess what! You can`t close on that house unless you agree to pay it! It is a common practice for some shady Mortgage Companies. Check them out in the credit bureau AND the Better Business Bureau (BBB) BEFORE you agree to anything, or ask your agent to help you by referring a good Mortgage Rep to you. Even then, just to be on the safe side, ALWAYS check professionals out on the internet and BBB! You will be surprised at what you might find out about people!

Good luck to you!
Vickie "Vick" Carver
Sales Assoc., REALTOR
Century 21 Alliance
Mt. Laurel office
856-889-1623 (direct)
856-722-0880 (office)
Your Rainbow Realtor!
"Chasing your dreams of Home ownership to the end of the Rainbow,your new HOME"!
0 votes
Michael Hump…, , Winchester, VA
Thu Sep 10, 2009
most places have gone to 620 minimum score
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Luke Allison, , Asheville, NC
Thu Sep 10, 2009
With us you can. We do not have a minimum credit score requirement for FHA loans. Let me know if you have any questions.
Luke Allison
Bank of America Home Loans
0 votes
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