Can I buy a house with a 600 credit score? Almost everything on my credit is positive. The home I want is $165K and I can put down $10k. Thanks!

Asked by Katie, Kent, WA Mon Jan 3, 2011

I had a car repo 7 years ago and this will be off my credit in Feb. Other than that, everything is positive.

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22
Dan Tabit, Agent, Issaquah, WA
Mon Jan 3, 2011
BEST ANSWER
Katie,
Loan approval is possible based on what you offer, but not guarenteed. Start by finding a full service mortgage broker who is willing to work with you on your credit history. It may be possible to improve your score and qualify for an FHA loan with only 3.5% down.
0 votes
Dan Tabit, Agent, Issaquah, WA
Tue Jan 11, 2011
Katie,
Congratulations, you are heading in the right direction. Lenders use the middle score to base their decisions. For example, if you have a Trans Union score of 580, Equifax of 620 and Experian of 650, the bank will look at the 620 score for their decision.
FHA doesn't rely on scores as much and with $10,000 available is likely your best bet. You should have enough cash for your down payment and closing costs at the price you mentioned earlier. Before you settle on that house however, get an agent to show you a few more so you make an informed decision. Congratulations again on the improvement in score.
1 vote
Jirius Isaac, Agent, Kenmore, WA
Mon Jan 3, 2011
Katie, this should b exciting for you. It looks like after a lot of work & patience on your part, you are close to making your dream come true. I could re-state what every one has already told you, but I just want to emphasis one thing and that is that talking with a lone officer has to happen like yesterday. In fact, it is possible that some of the things you did to make your credit score improve, actually may have made it worse. I am both a loan oficer & an agent.. Good luck to you.
Web Reference:  http://www.metromgi.com
1 vote
, ,
Mon Jan 3, 2011
Katie, Rhonda is correct - there's no cost to talk to a lender and please don't feel like you'll be laughed at. The lenders are here to help and you will not be judged. Interview the lender on the phone and if you don't feel they are listening or giving you the help you need then just hang up and move on. Just don't give them your personal information until you've decided they are the right person.

I mentioned the cost of the credit report because I know that will be critical in the loan officer's ability to give you the best advice. Without the report in their hands they can only guess as to whether you will qualify or how to help you improve your score.
1 vote
Tim Moore, Agent, Kitty Hawk, NC
Mon Jan 3, 2011
I would suggest you talk with a loan officer and ask about FHA loans that require a 3-3.5% down payment.
1 vote
Invstnlfp, Home Buyer, New York, NY
Tue Oct 11, 2016
I am state and federally licensed to write purchase and refinance loans in 31 states for a top direct lender in the mortgage industry who offers FHA, VA, and USDA loans down to a 550 credit score. We keep your info private not broker it out and we go down to a 550 credit score for VA and FHA. Feel free to text me or call me anytime
Brian Young 214-797-3479
NMLS#902687
0 votes
Christina Fe…, , Pierce County, WA
Wed Jan 26, 2011
Yes, you can indeed! As of the first of the year, we have programs now with a minimum 520 credit score, so with a 600 you can definitely qualify.

I would love to assist you with your financing, and create a mortgage catered to your needs.
Please email me with any questions or concerns about the process, and where to go from here!

Warmest Regards,
Christina Fernandes
Wells Fargo Private Mortgage Banker
Christina.O.Fernandes@wellsfargo.com
0 votes
, ,
Wed Jan 12, 2011
thats good news on scores improving ...your best bet is still a FHA loan and if the middle score is now 650, the pricing ( interest rate and fees) that you would have available should improve a bit .
0 votes
Katie, Home Buyer, Kent, WA
Tue Jan 11, 2011
Good news. My credit jumped upto 650! Does this mean I have a better chance in buying a home with 10K down?
0 votes
, ,
Tue Jan 4, 2011
katie

your best bet will likely be using a FHA loan with this credit score....fyi - the minimum down payment for a 165K house is only $5775 ( 3.5% of the purchase price )

thanks
0 votes
Tonya Hunsto…, Agent, Graham, WA
Tue Jan 4, 2011
The answer is yes with a 600 credit score! I work very closely with a lender whom we have closed many loans like this. If you have any further questions or would like me to get you set up with my lender feel free to call me anytime! I would love to help you in any way I can.
Tonya Hunstock
Better Properties
253-312-9801
0 votes
Sharon Uhlig, , Tacoma, WA
Tue Jan 4, 2011
Hi again

I would like to give you the information to a lender that may be able to help you. As long as your credit has been good for the last year and you have proof of paying rent on time, this may be something that you may be interested in. Call Brian at Key Bank in Tacoma - 253-572-4509.

Good luck.

Sharon
0 votes
Nikki A, Edw…, , Woodbridge, VA
Mon Jan 3, 2011
You will typically need a 620 and we can look at your credit and help you get that and assess your situation. Give me a call, Nikki 910-875-0291
0 votes
Rhonda Porter, , Seattle, WA
Mon Jan 3, 2011
Katie,
a mortgage professional should not charge you a thing to talk to about your scenario. At the most, they may charge for a tri-merge credit report (less than $20).
0 votes
Sharon Uhlig, , Tacoma, WA
Mon Jan 3, 2011
Hi Katie
There is some special financing that qualify special housing areas and I happen to list a few. If you are interested, you can give me a call. This special financing is for those with a score as low as 600, 0 down and 30 year fixed. This is very exciting, I'd be more than happy to talk with you about it.

Sharon
0 votes
Alex Foraker, Agent, Puyallup, WA
Mon Jan 3, 2011
Katie, loan prequalifications are free. Again if you want a referral I would be happy to forward you contact information of an ethical and great lender. In addition if you're not eligible for a loan they can tell you exactly what needs to be done to secure a loan. Also congratulations on working towards home ownership!

Alex Foraker
253 209 4200
alexforaker@genesisrealestate.com
Web Reference:  http://homes77.com
0 votes
Katie, Home Buyer, Kent, WA
Mon Jan 3, 2011
I have been working on my credit non-stop for the last few years. I know the repo will be off my credit in Feb. I'm paying monthly for freecreditreport.com to keep track of every detail of my credit. Home ownership is something i have been dreaming about for years, but thought it would never reallyy happen for me due to the mistakes i make when i was younger.

I have not talked to ANYONE about qualifying for a home basiclly because I did not want to get laughed it.
Does it cost anything for me totalk to a loan/mortgage office?

Thank you for all your responses.
0 votes
Jami Robson, Agent, Gig Harbor, WA
Mon Jan 3, 2011
Hi Katie,
Happy New Year! I work closely with a lender who can run your credit through a program and with a few clicks of the mouse, can tell you what you need to do to up your score, and possibly up it in the process!! Please give me a call, 253-279-0696, and we can get together with her!
Have a great day, I look forward to hearing from you!!
Jami
0 votes
, ,
Mon Jan 3, 2011
Katie, I'd like to emphasize the recommendations you've had so far to work on improving your score simultaneously with working with a lender to get pre-approved.

If your credit is perfect but your score is only 600 I'm guessing you have no open accounts right now? Often times you can get quite a few points just by opening 1-2 $500 secured visa accounts with a local credit union or bank.

For about $17 you can have a loan professional order your credit report. Armed with that information the loan officer should be able to tell you whether you really can finance a home right now and what you can do to improve your score.

Moving your score from 600 to 620 or 640 may not be that difficult and will save you a lot of money.
0 votes
Rhonda Porter, , Seattle, WA
Mon Jan 3, 2011
Angie, most lenders are going to require about a 640 "low mid" credit score for an FHA loan (or any mortgage). Some may go lower however, you may find that the rates will increase dramatially.

The good news is that your scores should continue to improve as more time has passed since the repo and as you continue to establish a good credit history. It could be in February that your scores are high enough as far as credit scores is concerned.

There is more to qualifying for a mortgage than just credit scores. A lender will also look at your entire credit history. Have you had late payments in the last 12 months? Is there a remaining balance on your repo? If you're planning on buying a home within the next year, I recommend meeting with a mortgage professional to review your credit now and help establish a solid game plan.
0 votes
Alex Foraker, Agent, Puyallup, WA
Mon Jan 3, 2011
Hello Katie, I would be happy to refer you to a great lender I work with in the Kent area. Feel free to call or email and I will pass along his contact information.
Web Reference:  http://homes77.com
0 votes
Kristina Cla…, Agent, Edgewood, WA
Mon Jan 3, 2011
Hello Katie, have you spoken to a lender? I have a great lender I use. Can you call me to discuss? 253-576-4304

Also in the meantime view my website to inquire on properties.
0 votes
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