C-score is 609. No personal loans/write-offs/repos/bankruptcy. make $23k/yr. 3 past due bills of $760. Where can I be approved as 1st time buyer?

Asked by clburris1, Austin, TX Mon Jul 22, 2013

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, ,
Mon Jul 22, 2013
Good afternoon clburris1,

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

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1 vote
BAL investment is now offering low interest-loans for commercial & residential real-estate investment projects.
For further information on our funding packages, send in your inquiries via email: projects@businessarealimited.com
Flag Tue Nov 3, 2015
Great info. The past 3 bills are sent to collections about over a year ago. 2 are from cell phones of 300 each and 1 is a medical bill of 140. My car is paid off and I pay everything in cash. I've had my job for 9 yrs and have a goal of buying a home in a year. We are paying high prices in our area that keep rising each year for a small 400sqft apartment and if we are paying $800 to rent, I thought we could look into buying a house. I also have a COE for a VA Loan and were trying to get approved for an $80k house but the bank approved another buyer instead of us. We aren't sure how a rent to own would work but thought to try and find answers before trying to get credit. Do you think maybe getting a credit card and paying those bills and some other emergencys would help build credit within a year?
Flag Mon Jul 22, 2013
Josh Kohl, , Austin, TX
Mon Jul 22, 2013
My advice is to call a few of the lenders who answered myself included. Its possible to get an FHA. It depends on the what the past due bills are, how current, if they are reporting on your credit report and several other factors. Your goal depending on your time frame should be to get your score up to 640 as the rate will be better. Have a someone run credit essentials or credit expert on your credit report to see what can be done to get your middle score over 640.

Josh Kohl
PMP Mortgage
Office 512 342 1069
1 vote
Don Groff, Agent, Austin, TX
Mon Jul 22, 2013
If your current bills are past due the first thing you need to do is pay them current and keep paying them current. You will not be able to obtain financing with them being delinquent. This is not necessarily true if they are collection accounts and are 2 or more years old. There are also some other options but if these are current bills that are late your credit is dropping like a rock each and every month.

So pay those bills so they are current and pay them off. From there your credit should improve but honestly right now your credit could have dropped even further depending on how late those payments are.

So from there you need to be set up with a good lender who can and will work with you to ensure you are where you need to be.

Hope this helps.

Don Groff | REALTOR® & Mortgage Broker
Austin Real Estate Pros & 360 Lending Group
o 512.669.5599 | m 512.633.4157 | listings@dongroff.com
websites: http://www.AustinListed.com | http://www.360LendingGroup.com
Web Reference:  http://www.AustinListed.com
1 vote
, ,
Tue Nov 3, 2015
BAL investment is now offering low interest-loans for commercial & residential real-estate investment projects.For further information on our funding packages, send in your inquiries via email: projects@businessarealimited.com
0 votes
, ,
Fri Jul 26, 2013
We have programs down to 600....
Charge-offs/collections aren't a big issue as long as you have some good credit to offset.

Call me if you would like to talk about your deal. Or I can refer you to a realtor in Austin... She has a couple of good lenders.

Tom Burris
Mortgage Banker
(214) 763-4629 cell/text/nights/weekends(Really!!)
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
0 votes
, ,
Mon Jul 22, 2013
Give me a call - we're able to approve FHA loans (3.5% down) with middle credit scores as low as 580.

K.C. Jones
Gold Financial
0 votes
Bill Austin, Agent, Austin, TX
Mon Jul 22, 2013
You are very close to being able to get a home loan. The lenders use your middle your middle credit score. I'd be happy to work with you in getting your score to move up in the 620 - 640 range and in finding a home that fits your needs.
0 votes
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