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Swtness09, Renter in Round Lake, IL

Poor credit

Asked by Swtness09, Round Lake, IL Sat Feb 11, 2012

I would like to purchase a home this year but have a poor credit score. Is there any opportunities for people with poor credit scores to pursue home buying?

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I don't know what Michael is talking about... you have to have low debt to income and job stability/stable earnings even if you have a decent credit score. you pay a risk adjusted premium that might be 2% for being a low credit score, however, you wont get the loan if you are independent contractor, no proof of income or recent job change. You could have a 700 score and if you just started a job 3 months, went thru a BK one year ago, had purchased a new car with a $600 per month payment, you still wont get a loan!
0 votes Thank Flag Link Thu Feb 16, 2012
This really depends upon your credit score, and the factors that bring it down. The lenders I work with often direct my clients to credit repair specialists, which can help significantly. Reach out if you need assistance with this, and good luck!

0 votes Thank Flag Link Sun Feb 12, 2012
Credit score is but the first hurdle. job stability, source of income and debt to income ratio all play a larger role than a credit score. If you have a decent credit score, but have been in a job less than 18 months and have a high car payment, or went through a bankruptcy or foreclosure sale expect hesitation from the banks. Reportable income from a salaried job is preferable or a track record of getting consistent 40 hour weeks at work. Independent contractors and self employed are given a lot of scrutiny! Start with getting a few lender opinions. One last thing, once you get into risk adjusted rates, you might be up around 6% so dont worry about the rates going up, when your overall credit scenario gets better you would get the best prevailing rate.

best of luck!
0 votes Thank Flag Link Sat Feb 11, 2012
Yes there are opportunities. Contact a mortgage broker to explore what is available. In addition sometimes Credit Unions are more lenient to someone with a lower credit score.

All the best,
Gary Geer
0 votes Thank Flag Link Sat Feb 11, 2012
Yes, get a hold of an agent you feel comfortable with, exchange some information, and let theagent lead you in the right direction as far as working with a mortg. broker to help out. Be as honest as possilbe and you'll get the facts you need. Feel free to write or call with any further questions. Good luck and thanks for asking.
0 votes Thank Flag Link Sat Feb 11, 2012
Hi, It's best if you contact a mortgage professional directly as they will guide you accordingly.

0 votes Thank Flag Link Sat Feb 11, 2012
Depending on what your credit score actually is, yes, there are opportunities. A more important question is what you are doing right now to improve your credit? It does not take long if you are strict about repairing the damage, but it something you have to be diligent on. Why not take this time to get yourself in the best position to purchase a home, when you will qualify, with good credit, for a decent mortgage rate?
0 votes Thank Flag Link Sat Feb 11, 2012
Hi Swtness,

The short answer is - it really depends on the score. If you are in the 400-500's, it's going to be very challenging. You can qualify for some programs with scores in the low 600's, but I would call a mortgage broker to discuss your options. If you'd like some referrals/contact information of some that I trust, please feel free to contact me.

0 votes Thank Flag Link Sat Feb 11, 2012
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