I want to buy my first home but my credit is not so good, it is in the 600's.

Asked by Mirtha82, Orlando, FL Thu Apr 11, 2013

I want to buy my first home but my credit is not so good, i have been paying all of my good accounts in time since 2009 and was able to purchase my first car last year. My husband and I really want to purchase our first home next year, but im not sure if it will be possible. Please help :/

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Bryan Knight, Agent, Winter Park, FL
Fri Apr 12, 2013
Mirtha - don't prejudge your credit! The rule of thumb for qualification purposes is a 640 but I can do FHA manual underwrites down to a 600. If you are buying your first home there are a lot of options. I personally would recommend new construction as all of the home builders are offering incentives to cover closing costs for using their lender. Depending on your overall household income you could look at purchasing a home that will qualify (this is a geographically restricted program) for 100% USDA financing, so essentially you could walk into the home with little to no money out of pocket. Also if you or your husband is a Veteran you could qualify for a VA loan which also offers 100% financing. Lastly, based on your income and other criteria you could qualify for the Florida Bond Program, which provides for down payment assistance for first time home buyers. Coupling these options with the builder incentives creates a winning combination every time. Lennar, MI, Taylor Morrison, Ryan Homes and DR Horton are offering some fantastic communities peppered throughout central florida that offer the USDA option and Florida Bond program. If you are interested in learning more about these communities or financing options, please do not hesitate to reach out to me and I will be more than happy to help!

Best regards,
Bryan Knight - REALTOR, SFR, AHWD
Mortgage Loan Officer
The Brenparc Team
Greater Orlando Realty USA Inc,
Approved Mortgage Source
NMLS # 859840
407-756-5517 -cell
407-951-5129 - fax
1 vote
Bryan so you are able to help people with a 600+ credit score regardless of what is on the credit?
Flag Fri Dec 13, 2013
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Tue May 7, 2013
Good afternoon Mirtha82,

We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.

It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140

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0 votes
eubbie44, Home Buyer, Indianapolis, IN
Mon May 6, 2013
My credit is 636 right now
0 votes
Abraham Bidh…, Agent, Orlando, FL
Thu Apr 11, 2013
Hi Mirtha:

You are almost where you need to be. I have a great lender who offers free credit repair services and he can perhaps bring your credit up pretty quick. Since you are a first time home buyer you might also be able to take advantage of$7500 county bond program toward your down payment. Please feel free to email me so we can discuss these and get the ball rolling on your house purchase.

Abraham Bidhendi
Top Producer Realtor® with over 26 years of experience
Awarded as Exit's TOP Buyer side Transactions for the State of Florida
We have had 142 successful transactions during the past year alone.
Exit Realty Access, LLC
Direct: (407) 744-2533
Fax: (407) 444-9925
Email: REOsofflorida@msn.com
Website: http://abidhendi.orlandopropertiesonline.com
Kissimmee Office: 391 N. Main St., Kissimmee, FL 34741
Altamonte Springs Office: 660 Palm Springs Dr., Suite D, Altamonte Springs, FL 32701
0 votes
Karen Weathe…, Agent, Orlando, FL
Thu Apr 11, 2013
Anything over 625 should be enough for you to secure a mortgage. I know a few great mortgage consultants whom I have personally worked with and who would love to help you. You may also be able to qualify for a 1st Homebuyer Down Payment Assistance program!! Let me know if I can help!:).

Karen Weathers, REALTOR
Charles Rutenberg Realty
0 votes
Mirtha82, Home Buyer, Orlando, FL
Thu Apr 11, 2013
Thank you for all of your answers!
Our income combine is around $46,000 a year and I also receive $700 a month in child support, and this will be our first home
0 votes
Melissa Gera…, Agent, Tonawanda, NY
Thu Apr 11, 2013
Even if your credit score is not so hot, I know a lender that will fund your loan if you have income within their guidelines and you are a verifiable first time home buyer. Contact me and I will be happy to put you in touch with them.

Melissa M. Gerace
Real Estate Consultant/Realtor
Premium Properties Real Estate Services
564 N Semoran Blvd., Orlando FL 32807
0 votes
Jennifer Bar…, Agent, Winter Park, FL
Thu Apr 11, 2013
Hi Mirtha,

Actually a score in the 600's is very doable. I work with a great lender I can put you in contact with. There is a lot going on in the Orlando market. I can send over some information so that you have all the tools you need to make an informed decision. Take a minute to look at my profile to see if you would like to work with me. It is important to hire the right team to take care of all your needs. Feel free to search my website. I look forward to earning your business.

Jennifer Barker
Exit RealtyCentral
0 votes
Vincent Paige…, Agent, Orlando, FL
Thu Apr 11, 2013

Typically FHA likes to see 640 or better. I have seen other types of loans with 620. Give me a call or send an email and I can refer a great mortgage lender to you!

Vincent Warren Paige, Jr.
REALTOR® | RE/MAX Showcase
Certified Broker Price Opinion Registered Agent (BPOR)
8934 Conroy Windermere Road | Orlando, FL 32835
Direct: 407.256.8190 | Fax: 407.264.8073
0 votes
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