Purchase a home or mobile. Bad Credit. Need help towards this goal. Some $ for down payment and/orFHA Loan?

Asked by tinamarieb68, Williamstown, NJ Tue May 28, 2013

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Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Wed May 29, 2013
Good afternoon tinamarieb68,

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.
http://www.consumer-action.org/

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.
http://www.consumer.ftc.gov/articles/0058-credit-repair-how-…

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
Toni Sadiq-L…, Agent, Sewell, NJ
Tue May 28, 2013
Hello, All of the below is true. There are a few programs left that will assist you with down payments such as Smart Start, Live Where You Work, USDA, and the Mortgage Readiness Program. However, all of these programs assume you can qualify for a loan.

You mentioned bad credit, do you have an actual copy of your credit report with credit scores. If not, you can go to annualcreditreport.com. Review and print your credit reports so you have an understanding of where you stand. You can also read my blog on Trulia on Fico Scores.

Feel free to contact me if you have any questions.

856-343-8034
0 votes
Tony Grech, Mortgage Broker Or Lender, Southfield, MI
Tue May 28, 2013
Hi TinaMarie

You'll definitely need to get your credit in shape. Credit is the #1 indicator to banks of whether they are going to be safe lending their money to you. Focus on getting your finances in order - bringing your credit up to snuff, saving money for a down payment, etc. - then start looking for a home.

Best of luck!
0 votes
Paul Howard, Agent, Cherry Hill, NJ
Tue May 28, 2013
If you are serious contact: https://www.facebook.com/pages/Consumer-Credit-Counseling-Se…

Work with them till you can qualify for financing then contact a Realtor to help you find a home.
I'm willing to help but only if you take the steps needed to convince a lender to lend you money to buy a home.

Good luck.
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