hi.if i have a599 score make 58.000 a yr and looking in buying a 95.000 house but my credit cards are 12.000 all to the limit ,can i get a motrgage?

Asked by maysoonfaraj2, Hickory Hills, IL Fri Sep 30, 2011

i do'nt want to apply knowing it imposible to get a home loan ,what about those bad mortgage loans are they good co.thankyou

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Annette Levi…, , New York, NY
Sat Oct 1, 2011
You are not in a financial position to buy a home now. If you maxed out your cards, you are not handling your finances in a responsible manner. Go to your local nonprofit housing group for credit counseling. Listen to the counselor. You need to get your credit balances lower by learning how to live within your income. After you follow their advise your credit score will go up and learn and to live within a budget.
2 votes
Dan Tabit, Agent, Issaquah, WA
Fri Sep 30, 2011
Part of the reason your scores are so low is because your cards are maxed out. You will save a ton of money and improve your chances of getting approved if you pay your balances down and keep them there.
With lower balances you'll qualify for a higher loan balance. With better scores your rate will be better too.
2 votes
Rob Weber, Mortgage Broker Or Lender, Plainfield, IL
Fri Jan 18, 2013
"Can you", yes.

"Should you", a completely different story.

I won't steal anything from those who took the time to write constructive answers but suffice it to say, it looks like buying a house isn't the ideal thing to be doing with what you've told us. Before you call every lender in the country trying to get this loan, I highly recommend you analyze your credit card statements and determine how much of your monthly income is paying credit card interest (which isn't a tax deduction), you may want to change the direction your ship is headed until that aspect of your finances has changed significantly.

Best of luck!
1 vote
John Walin, Agent, Libertyville, IL
Sat Jan 19, 2013
old question how did this resolve itself?
0 votes
Jose Dias, Agent, Scottsdale, AZ
Fri Jan 18, 2013
My answer is based on my experience helping buyers in the Phoenix area:

1 - most lenders require a 620 credit score. There are a few that will do with 580+ but you will have to put significantly more money down.

2 - your income is fine for the price range you are looking for. I have helped home buyers that make less money than you buy more expensive houses than you are planning to buy.

3 - being maxed out on your credit cards has a huge negative impact on your credit. Believe it or not, it is usually better to have a lower credit limit and not use it all, than to have a higher credit and use it all. The good news is that even though you are maxed out on your credit cards, your score is still not too low. You can probably bring your score above the 620 if you reduce your debt to credit limit ratio. Two ways of doing it - one you can pay off a significant part of the debt. Or you can ask the credit card companies to increase your credit limit. IMPORTANT NOTE - I am not advocating that you should do this. I am just making a point that this is an option that most people forget.

Good luck!

Jose Dias, REALTOR | (623) 418-5700 | Jose@MyFirstHouseAZ.com | http://www.MyFirstHouseAZ.com
0 votes
Suzanne Hami…, Agent, Orland Park, IL
Sat Oct 1, 2011
It may be possible to get an FHA loan with this score, but you would have to have 10% down. Wells Fargo will do. With a lower credit score, your debt to income ratio will not be as high as someone with a higher score. It will depend on how much you pay per month. You need to consider all debts you have. Then you need to think about down payment and closing costs? I would say you should talk to a couple of lenders and get a free preapproval.

Everyone is right though. Your credit cards make up a lot of your credit score. Reducing the monthly payment and limit to spend ratio can help your credit score tremendously. I can give you a couple of referrals and help you figure this out. Give me a call or email and I would be happy to run through it with you.

Suzanne Hamilton
RE Marketing Consultants
0 votes
Shane Milne, Mortgage Broker Or Lender, South Jordan, UT
Sat Oct 1, 2011
With $12,000 in maxed out credit cards I'd strongly consider you reduce/pay off that debt before you buy a home. It'll improve your credit scores, and that will increase your loan options & and qualify you for better loan terms (meaning a lower payment on the home you are buying). Further, I feel it's better to have the available credit card limits in case a financial emergency happens rather than using cash you have saved up at home (use that cash you have saved up as a backup plan to the credit cards for emergency situations). While it's not impossible to qualify in your situation, you will have a much easier & enjoyable time purchasing a home and qualifying for a mortgage if you spent some time & paying down the credit cards.
0 votes
Angela T. Pe…, Agent, Orland Park, IL
Fri Sep 30, 2011
I suggest you shop lenders - meaning talk to several to compare their program offerings. Contact Kevin Williams at Wells Fargo at 773-239-1210 or 708-743-9033 or Karen Carson with Key Financial Services at 708-460-1400 or Sanette Isa-Bruton with Guaranteed Rate at 708-995-3061 or 708-280-8688.
0 votes
Michael Cline, , Chicago, IL
Fri Sep 30, 2011
It may still be possible to get a mortgage, but you'll need at least a 620 score. I understand that you don't want to apply for fear of being denied, but the only way you'll know for sure is to apply and see what happens. The pre-approval is free and so is the credit check. Feel free to call if you have any questions or concerns. Thanks.

0 votes
Peter Kedzior, Agent, Elk Grove Village, IL
Fri Sep 30, 2011
Most lenders require a FICO credit score of 620 or higher for a 30-year mortgage. Wells Fargo offers FHA loans for borrowers with credit scores as low as 500 (with 20% down payment). Please contact Adrian Orlowski from Wells Fargo Schaumburg at 312-912-3855 for more details.
0 votes
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