I have a middle credit score of 636 , out of 9 negatives on my credit only 3 things left .. One is a car repo 5 years ago, a judgement that is paid .

Asked by Doeyzworld, North Las Vegas, NV Sun Feb 3, 2013

Two secured credit cars with low balances NEVER late, one credit car unsecured low balance help!!! I want to start looking at houses but lenders say different things ... No way with the repo on my credit, even if I had a 800 score! And some say get your score to 640... Which is it?

Help the community by answering this question:

+ web reference
Web reference:


, ,
Tue Feb 5, 2013
Hello I would need a 640 to help you, I can do mortgages nationwide. If you would like to contact me I can pull your credit and if it is lower than a 640 I can run a rescore program which will tell me what you can do to get your scores up. It can be as simple as paying down the balance on a credit card under 50 -33% of the credit limit on the card, to give you the extra points. My phone is 262-649-5439 and email is bsorenson@englending.com

0 votes
, ,
Mon Feb 4, 2013
You are being told various things because not all lenders have the same requirements for getting a mortgage. Some require a certain credit score, some require collections, charge-offs, repo's to be paid off if there is a balance owing no matter when it occurred, etc.

When credit scores aren't so excellent (such as a 636) & with a low down payment, usually FHA financing is the better loan program because interest rates are pretty low compared to the alternative option which is conventional financing, plus FHA doesn't require collections, charge-offs or repo's to be paid off as part of the loan approval (although each lender is free to make their own requirements for those items to be paid off, which are called "overlay guidelines"). Not all FHA lenders require owing charge-offs, collections & repo's to be paid off though. FHA financing also can accept people with a credit score as low as 500, but anything below a 580 credit score requires a 10% down payment (otherwise with a 580+ credit score FHA is OK with a 3.5% down payment). Again, however, lenders can make their own credit score requirements as long as they aren't any less restrictive than FHA's are, i.e. a lender could decide they will require a 620 or 640 credit score for their FHA programs.

Conventional financing typically requires just a 620 credit score (Fannie Mae & Freddie Mac programs always need a 620 score), but it is tougher to qualify for and while collections, charge-offs & repo's aren't required to be paid off, it's more common for lenders to have those overlay guidelines that will require them to be paid if the accumulated balance is over a certain amount. With less than 20% down conventional financing typically needs higher credit scores (660-680) because then private mortgage insurance (PMI) is needed and the PMI companies can impose their own credit score & qualifying requirements as well, although it is possible to obtain PMI with just a 620 credit score through a company called Radian, but not all lenders utilize that PMI company.

Because buying a home is something that should be taken very seriously, and your situation is a little more complicated than someone who has excellent credit, make sure that whoever you apply for mortgage with has thoroughly reviewed your entire situation before making a decision to use them for your financing. I'd even recommend you have an underwriter (the person who ultimately decides if you are approved or not) review your situation prior to making an offer on a home, as if paying off that repo is not possible then you'll want to make sure the underwriter isn't going to require you pay that as part of the loan approval.

Shane Milne | Lending in all 50 states | NMLS #81195
shane@thebesthomeloans | 949-273-4161 direct
0 votes
Diggity, Agent, Las Vegas, NV
Sun Feb 3, 2013
Also , being approved by a lender does not necessarily mean you are ready to purchase a home .
It's best to get the education you need before moving forward .
Try contacting the Financial Guidance Center . They are a non profit organization that can really help you understand the process . Their motivation is to help you become an educated homebuyer who can sustain homeownership by understanding their credit . Their motivation is not so much just to get you a loan and sell a property .
0 votes
Diggity, Agent, Las Vegas, NV
Sun Feb 3, 2013
I suggest you talk to some one at Consumer Credit Counseling now called Financial Guidance center . They are best equipped with the tools and resources to help you understand what to do .
0 votes
Rena Levy, Agent, Las Vegas, NV
Sun Feb 3, 2013
I just helped a buyer purchase a house FHA financing with same scenario . Call meon Monday
702-612-7099 or email cvegashomes@gmail.com.

Rena Levy
Realty Executives
Web Reference:  Http://www.cvegashomes.com
0 votes
Myra Gouger, Agent, Las Vegas, NV
Sun Feb 3, 2013
Work with a mortgage company or bank mortgage department that will help you. You will need a 640 credit score. Mortgages companies and banks can get rapid rescores to help you. I can refer you to some companies who will help. Myra Gouger/Please call: 702-858-9311.
0 votes
Robert Steim, Agent, Las Vegas, NV
Sun Feb 3, 2013
It sounds like you are on the right track and it sounds like you have a decent shot at being approved by one of my lenders.

Contact me and we can discuss further and get a loan officer involved that may be able to approve you!

Robert Steim
Easy Street Realty
0 votes
john peters, Agent, Henderson, NV
Sun Feb 3, 2013
I work with North American Financial a Mortgage Broker. We work with many Lenders and have found loans for many people just like you. I can examine your unique situation and find you a remedy.No obligation please call me Johnny Peters 939-2474,
0 votes
Mike Kruse, Agent, Las Vegas, NV
Sun Feb 3, 2013
I am a Realtor not a loan officer but with that said, many mortgage companies have options available with unique situations similar to yours. Email me at mike@lasvegashomesbymike.com and I will be happy to get you in touch with a reliable mortgage company and I would gladly assist you in your home search.

Mike Kruse
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more