I really want to buy a home but don't really have the credit!!

Asked by Jessie, Salinas, CA Sat Dec 13, 2008

Due to medical bills in the past it is now affect my credit score. I'm currently paying them of and currently have a credit score of 580, 550, & 563. I like to hear some feed back or suggestions.

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Randall Sand…, Agent, Charleston, SC
Sat Dec 20, 2008
Hi jessics - Talk to a qualified lender who offers credit services. You are pretty close to being in the range for an FHA mortgage and a good mortgage lender and help you make the right choices to bump up that credit score.

Another option is if you have a friend or family member that will co-sign for you.

Remember - you will need at least 3.5% as a downpayment for an FHA loan.

Happy Holidays,

Randall Sandin, 843-209-9667, rsandin@carolinaone.com
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Kerry Harvell, Agent, Monterey, CA
Sat Dec 20, 2008
Since you've had your credit pulled, I'm guessing you've already talked to a lender. Did they mention FHA loans by any chance? I believe you'll only need a 580 score to qualify and you're close at 563. If I was in your position, I'd drop by Bank of America Mortgage in Salinas and ask for Carmen Konen. She might be able to look over your credit and advise a couple of simple tweaks to get you there. Tell her I sent you.

You'll only need 3.5% for a down payment. With the prices where they're at and the interest rates low, you're smart to want to get in the market!
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Dp2, , Virginia
Sat Dec 13, 2008
I know of several investors (some in Greater Cleveland, Metro DC, and ATL) who partner with credit repair and other service providers to provide some people with similar situations like yours. They basically work with potential buyers to do the following: 1) work on repairing the buyers' credit, 2) set up a "rent-to-own" (or lease-option) relationship with the buyers where the buyers will rent a place until they've fixed their credit, and 3) sell that home to the buyer using seller financing (sometimes with a balloon payment which the buyer could pay off via refinancing that loan with a conventional lender).

Perhaps, there's something similar in your area. And, of course, caveat emptor.
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David Chambe…, , Saint Petersburg, FL
Sat Dec 13, 2008
In order to really help you I would need to look at your credit. You can get it free once a year or I can pull it for you at my cost $15. I don't do loans in CA but I do know what will help you.

David Chamberlain
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Bad Time To…, Both Buyer And Seller, Miami Beach, FL
Sat Dec 13, 2008
Work hard, pay your debts and save for a 20% down payment. The market will not recover for at least another decade, so you'll likely be watching prices drop for the next 2-3 years and that will make you happy you didn't have the credit to buy!
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Voices Member, , Benton County, OR
Sat Dec 13, 2008
Jessica, It sounds like you have the right idea for now, improve that credit. The economy is bad, home prices are still being affected, no one knows for sure about interest rates and a new President takes office in Jan.
As bad as you want to own a home now, it might be better to inform yourself as much as possible about what's going on in the market you want to buy in and keep improving that credit. When you are sure you are ready then finding a good agent will be easier for you and they will be representing a buyer who knows what they are looking for.

Good luck, Dunes
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CJ Brasiel, Agent, San Jose, CA
Sat Dec 13, 2008
Jessica -

There are many resources on line to give you tips on improving your credit.
One of first steps is looking at your credit report and checking for accuracy.

Knowing what affects your credit score and how to improve it is the first step. See the article at about.com that indicates the following break down on what affects your credit: http://financialplan.about.com/od/creditdebtmanagement/a/imp…
* Payment History – 35%
* Total Amounts Owed – 30%
* Length of Credit History – 15%
* New Credit – 10%
* Type of Credit in Use – 10%

Another good article:

An article that explains how to read the codes associated with negative reporting:

Finally- if you are considering a professional to help fix your credit, read:

Good luck!
Web Reference:  http://www.TalkToCJ.com
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