We have 3-4,000 for DPymt on home, but have bad credit, how can we qualifty to purchase a home under 80,000.00

Asked by rdc, 75211 Wed Feb 18, 2009

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Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Thu May 2, 2013
Good evening rdc,

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
Mortgage Iq-…, , Harlingen, TX
Mon Jul 9, 2012
RDC,
The main objective is to see how close your credit score is to qualifying. Many mortgage companies have the ability to have your credit rescored (up to 100 points) within a few days to obtain a score that is adequate for financing. Feel free to email if you have any questions. clacross@thehomelendinggroup.com.
Thanks and Good Luck with your home purchase!
0 votes
Dallas Texas, Agent, Dallas, TN
Wed Feb 18, 2009
You wont know all particulars home purchase till you contact a mortgage broker who can review financial records, employment, credit scores and debt ratio.

If you dont qualify for a loan ask loan officer for recommendation increase credit scores.

Downpayment is approx. 3.5 % or more of list price

Increase credit scores if you owe on credit cards reduce balance 50% or more never close an account it will lower credit scores.

GREAT time purchase a home interest rates low, many homes have equity
Web Reference:  http://www.lynn911.com
0 votes
Janine Love, Agent, The Woodlands, TX
Wed Feb 18, 2009
Now is NOT the best time to be looking for a mortgage if you have bad credit. It may be very hard to find. Plus your interest rate will be HIGH. You may want to look into a Lease to own property where you can purchase the home in 1-5 years, and try cleaning up your credit during this time.
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