Need help to get a home loan in Texas I have low credit score, in the 400's is there any hope?

Asked by Eledy, Texas Tue Sep 9, 2008

I have been turned down by 3 diff. loan companies, have tried an FHA loan, and have tried adding my husband whose score is in the 580's and even my mom in the 620's but they all tell me the same thing my mom who is self employed doesnt make too much and mu husband has a 625 truck payment. Is there any way for me to get a home loan? I am so desperate to get one as we are a growing family and want a home mainly for my son. Please help any advice would be so greatly appreaciated.

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8
James Wheeler, , Tampa, FL
Tue Sep 9, 2008
Not all loan programs are score-driven. But a score in the 400s is that low for a reason. You have to deal with the contents of your credit report if you want to get a home loan. If you're desperate, then perhaps it's time to face up to the underlying reasons for your extremely low scores and resolve to make a fresh start. If you'd like help getting mortgage ready, please feel free to contact me.
2 votes
Karen Shrock…, Agent, Dallas, TX
Wed Sep 10, 2008
Start with Consumer Credit Counseling Service to get your credit issues under control and raise your score. I've posted the website below. They offer not only credit repair and management, but also they have education classes in home ownership and home buying.

I worked with one client who went through a credit repair place. He paid a monthly fee to them and they sent out letters contesting virtually every negative on his credit report. A lot of companies use that strategy. If a debtor doesn't respond in a timely manner, the credit bureau has to remove the negative whether it is a valid debt or not. The plan was then that he was to apply and be approved for a mortgage within that window of time before the companies put the negative back on the report.

Beware that it is one matter if the debt is a valid obligation and an entirely different matter if the obligation has been fulfilled and the negative has not been removed as required. In my client's case, the bombardment of letters ended up a nightmare for him. He had an issue with a car loan for a vehicle that had been demolished and the gap insurance was supposed to have paid the difference between what he owed and what the insurance company paid out. The issue had been dormant and the creditors had left him alone for three years. When the letters started going out, they started to make collection calls to him repeatedly. He ended up not buying a house and hounded by collectors.

In his situation, the issue did need to be resolved, but it also put undue stress on him at a time when he did not need that stress. If you work with a good company, they will educate you about what to expect and what is fantasy.

I certainly understand your situation. I've been there myself. I'm not a big fan of credit scores and I tend to think that too much weight is placed upon them, but they were developed for a valid reason. (My husband was actually instrumental in developing a system for the company he worked for.) They were meant to be a guide rather than an absolute.

It does not good for you to get into a home that you cannot afford to keep. Would you rather get into a home you love and lose it through foreclosure or wait a year and reorganize your finances so that you can get into a house that you know you can keep? It's probably won't be your dream home, but working with a good realtor, you can make a start on that dream.
Web Reference:  http://www.cccs.net/
1 vote
Bruce Lynn, Agent, Coppell, TX
Tue Sep 9, 2008
Be wary of anyone who tells you they can get a loan done for you at this point in time. Certainly don't give them any money. What we need to do is sit down with you and your credit report and work on improving your credit score. I'd guess unless there is something on your credit report that is unusual is that you are about two years away if you work hard. You need to pay all bills on time in the meantime and we may need to work on improving your income and/or reducing your debt.
Web Reference:  http://www.teamlynn.com
1 vote
, ,
Tue Sep 9, 2008
There are no loans and 'no options' for a credit report with scores in the 400s.
Well, I take that back. 30% + down, maybe. But the fees are high and the rates are like 14%.

You need to have a lender who knows credit go over the report and teach you what to do to get your credit ready for a purchase. Here is a good book to read. It is a free download. http://www.dallasloanguy.com/docs/about_credit.pdf

Good luck!!
1 vote
Josh Thomas, , Austin, TX
Tue Sep 9, 2008
Hello Eledy,
Unfortunately, based on my experience, you will not qualify for a loan with your credit score. Your best bet is to enroll in a credit repair program and wait until your score is somewhere in the 600's. This could take anywhere from 90 days to 2 years or more. If you continue to search at this point, I fear you will only find frustration.

You may possibly be able to get a home through owner financing. Often, investors will sell homes with no credit check as long as you have a good downpayment and can afford a higher interest rate.

Good Luck.
1 vote
Dallas Texas, Agent, Dallas, TN
Tue Sep 9, 2008
I am a Dallas real estate agent, Dallas home loan mortgage officer, owned a credit repair company lecture to 1000's. If you been turned down by 3 companies odds are NO, HOWEVER THERE are options on how to place you on correct path. Contact my office where I can review more options with you. 972-699-9111
http://www.lynn911.com http://www.homes-for-sale-dallas.com
Web Reference:  http://www.lynn911.com
1 vote
Tue Sep 9, 2008
In my opinion no there isn't anyone Please be very careful, especially if people ask you for money to fix your credit. Your situation is desperate and bad people know that and will take advantage of how badly you want a house. Read an article I wrote about how to fix your credit. It's at http://www.choicefinance.net/brent.htm and best of all it's free and I know it works. Please feel free to email if you have a question and good luck.
1 vote
Mattye P. Sm…, , Dallas, TX
Tue Sep 9, 2008
Hi Eledy,

Contact me there are options available...let's evaluate your situation and plan a course of action.

Best regards,

Mattye P. Smith
Realtor


Colonial Real Estate
0 votes
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