Kim, Home Buyer in Minneapolis, MN

i have never baught a home before. I don't have good credit would it be possible to qualfy for a mortgage?

Asked by Kim, Minneapolis, MN Wed Aug 13, 2008

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Tino Martinez, , Illinois
Thu Aug 14, 2008
We actually can go down to a 500 credit score,
I have been in teh mortgage lending business for 21 years.
call me and we can review your situation and I can give you an answer in minutes.

Tino Martinez
First Capital Mortgage
0 votes
Susan Hoffla…, Agent, Shoreview, MN
Wed Aug 13, 2008
There are also a few downpayment assistance programs available to Minnesota and Minneapolis buyers. Some of them are set up like a grant that provides you with moneys that you don't need to make monthly payments on and, if you stay in your property for, in some cases, 5 years, you don't need to pay it back, it's completely forgiven. It's also wise to have an Exclusive Buyer Agent who is there to represent your best interests at all times. I never represent the seller and only a few other agents can say that. Take a look at my website.
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Amy Bowman, , Nampa, ID
Wed Aug 13, 2008
Hi, Kim--

It's definately still possible to qualify for a mortgage. Both responses are correct, but let me add to it.
FHA is most likely the program for you as they are generally the most flexible on credit rating and history. Ron is correct in that FHA did initiate risk-based pricing depending on your credit score and loan to value (LTV). It used to be that FHA would charge you an up front mortgage insurance premium of 1.5% and .5% monthly mortgage insurance, no matter what. With the new risk-based pricing, it can be higher or lower than this. However, the recent bill President Bush signed into law (H.R. 3321) put a moritorium on the FHA pricing hits, so we should see lenders change it back to the way it was, at least for now. I haven't seen any releases from lenders issuing this most likely because HUD hasn't provided any formal communication about it either.

The first step would be to have a loan officer pull your credit report so you know where you are and where you need to be.

Since you are in Minnesota, I would love the opportunity to refer you to a nationally recognized loan officer. Her name is Sue Woodard. She's actually somewhat of a celebrity in certain circles, but most importantly, she has the knowledge and tools to help you become qualified (if you aren't currently).

Sue Woodard

I hope you call her, Kim! Best of luck!
0 votes
Ron Wickes, , Conroe, TX
Wed Aug 13, 2008
Kim, What Lenny said is basically correct but there is a higher fee structure the lower your credit score so be aware. Your credit score can be fixed if it is low. The website reference has information on that. If you have any questions email me. Have a good day.
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Lenny Frolov, Agent, Brooklyn Park, MN
Wed Aug 13, 2008
Your best bet is to try for an FHA loan, they are mostly looking for a 580 score and would accept a few blemishes on your credit as long as you have stable income. There will be some new changes that come into effect on October 1st that may impact your ability to qualify so you would want to ask how it may affect you from a realtor or loan officer that deals a lot with FHA. Its a very good program. Let me know if you have more questions.
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