I have a credit score 600 and i've worked 2 jobs for 1year and 6months and made a little over $40,000 last year. Is a FHA loan possible for me?

Asked by Mesha, Covington, GA Wed May 11, 2011

with $0 down? I need to be IN a home within the next 3 months would be ideal but I am not sure if this is at all possible with no money down and such a low credit score. Any info would be greatly appreciated. Oh and all the homes i am interested in buying at this time are all $52,000 or less. Thanks

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8
Yolette Cher…, , McDonough, GA
Sat May 14, 2011
It is very possible with 0 down. My question to you what mortgage note you want to be at.?
0 votes
Solomon Gree…, Agent, Duluth, GA
Sat May 14, 2011
Mesha,

Like other agents, I too believe that you can qualify for a mortgage and buy within three months. This, however, is a conversation that really should be held offline.

No offense to my colleagues, but what applies to their companies may not (and often does not) reflect the most prevalent rules and strategies of the overall local mortgage lending market. So please give some thought to working with an agent (with access to multiple lenders) who has worked with buyers with scores similar to those that you describe who have actually closed.

We can also discuss some of the various home buying classes designed to help you understand the steps involved in the home buying process.

I'd welcome the opportunity to speak with you. When time permits, will you please call me at (678) 775-2677?

Solomon Greene
REALTOR® / HUD-certified Affordable Housing Counselor - Keller Williams Realty Atlanta Partners
0 votes
Yolette Cher…, , McDonough, GA
Thu May 12, 2011
Hi, I'm Yolette. Yes I can get you 0 down payment 0 closing costs and interest rates at 4.376%. Call me at 404-432-2877 for more info.
0 votes
Monir Mamoun, Agent, Denville, NJ
Wed May 11, 2011
Figure on 3.5% down for the best rates with FHA. You should be getting to over 620 to get a good FHA loan as well with almost any lender.

For more info read my blog, Top 10 Credit Myths. Link below. Good luck Mesha.
0 votes
, ,
Wed May 11, 2011
I understand that you asked for zero down but you didn't mention that you had other money. If you are willing to live in a USDA area (usually rural) you may qualify for zero down. Again, the HUD $100 down program is probably your best bet. Otherwise its 3.5%. And money in bank for 2 months. However, FHA allows you to save the money during the process and up through closing. You can also use a 401k loan or gift from a relative. Another option is to let me help you increase your score. I don't charge to do what I can. If after we see that you need additional help to remove certain accounts, I can refer you to a company (BBB and FTC approved).
0 votes
Mesha, Home Buyer, Covington, GA
Wed May 11, 2011
I have money to go towards closing costs when that time comes. However i was told before that i had to have at least %5 of the amount of the home sitiing in the bank for at least 5months untouched. And since this is not the case i worded my question as if I have $0 for the down payment
0 votes
, ,
Wed May 11, 2011
Unfortunately GA Dream requires a 620 middle score. Most county and city communities have money to give, if they have it but money is tight right now. Your next issue will be your credit. If your score is below 620 you're either near limit on credit cards and/or have collections. The bank will want to see at least 1 credit card open for at least one year reporting to at least 2 credit bureaus with no collections. I have worked with Freedom Norton and she's a fantastic Realtor! Definitely make sure that the loan officer knows what he/she is doing before sending her out there at $4 a gallon of gas. You may also want to look at HUD homes offering $100 down and up to 5k in repairs. You'll still need $500 earnest money and $300 for an inspection (optional but recommended). Some lenders will also require about $400 for an appraisal. Zero down doesn't necessarily mean no money out of pocket. You may still need money at closing. It scares me to think that you want to buy a house with no money. What will you do if something breaks (like transportation)? Good luck!
0 votes
Freedom Nort…, , Covington, GA
Wed May 11, 2011
yes call me 770.480.6348 Freedom Norton RE/MAX Agents Realty
0 votes
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