i would love to start the process of buying a house. My credit score is 595. I only came to NJ a year ago and i dont have any credit history.

Asked by Ruthie Matthews, Bloomfield, NJ Sun Apr 7, 2013

i have a credit card and a macy store card which are good credit, also i have rented this apartment for nearly a year. I have heard about NJ giving first time buyers money towards mortgages. I have seen short sales and lease to rent. i have seen a place at 65k but not sure if i would be able to get a mortgage. Should i wait? any help i would really appreciate.

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Jessica Bate…, Agent, Beverly Hills, CA
Tue Jul 16, 2013
Yes you get a loan now.I tell all my clients with lower scores to visit The Lenders Network, They have helped me close many homes by getting my clients approved even with scores under a 600. FHA allows lenders to go down to 580 credit scores with 3.5% down (96.5% LTV) They found the reputable lenders that do, so if anyone can get you a loan they can..

Good luck
1 vote
, ,
Mon Apr 8, 2013
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.

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.

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

If you thought my answer was helpful, please give me a "Thumbs Up" or "Best Answer." Thanks!
1 vote
, ,
Wed Jul 17, 2013
There are lenders who will approve loans with credit scores below 600 as long as you have been current for the last 12 months, can prove stable income and have a decent down payment/reserves.

The State sponsored Smart Start program will not give down payment assistance (dpa) with scores below 620 but you can look at other sources such as American Dream or any other municipal DPA grants.
0 votes
Melissa Goss, , Center Moriches, NY
Wed Jul 17, 2013
Not with a score that low, and if a lender does approve you with a score that low, be prepared to pay up the yazoo in interest.

Income will also play a role in whether or not you get approved. My first word of advice though, - if you don't have a scratch of a dime saved up for a decent 3.5% down payment, and money for the high closing costs you can expect to pay... do not even move forward. There are some lenders that will roll your closing costs into the mortgage, but this will only make your monthly payment increase.

I would wait, and fix your credit up. You want to at least be in the 700s
0 votes
Lilla Langfo…, Agent, Clifton, NJ
Fri Jul 12, 2013
You have asked a great question. It is such a great time to buy a house and there are homes on sale for such low prices that it seems like a no brainer. Also you have provided some key information. Knowing your buying power is the most important first step. That information you get from sitting down with a mortgage broker who will pull your credit from three different credit reporting agencies and analyze it with you, showing you what you will have to do to improve your credit score. They will also discuss with you your work history and what is required. Most lenders look for at least a two year work history, but even there it depends on what you were doing prior to getting your job here. And the lender would also discuss with you the size of the loan and the rates that might apply. Some lenders will not give a mortgage below a certain amount and you would need to get a different kind of financing.
I recommend that you speak with at least 3 different lenders and speak with them within a couple of weeks. Each one will want to pull your credit history and if you do this for the same purpose in a small amount of time, the credit reporting agencies recognize this not as three separate requests, but as one request, which minimizes the effect on your credit.
No matter how big or (relatively) small the loan amount ends up being, it is usually one of the largest debts you incur in your life. So get a second and third opinion. Try your bank, one or two recognized lenders, recommended by your realtor and if you belong to a credit union, try there. You should find that each one is giving similar information although some of the details may differ. Do beware of a lender that promises to get you a loan without addressing the issues of your credit and work history.
I wish you the best.
0 votes
Diane Glander, Agent, Spring Lake, NJ
Mon Apr 8, 2013
Only going by your credit score, I have a lender who can get mortgages with credit scores of 580 or better. If you would like additional information, message me via Trulia or my website, below.
Web Reference:  http://www.dianeglander.com
0 votes
Mercure Volt, Agent, Montclair, NJ
Mon Apr 8, 2013
I would say you are starting the process the right way, by checking your credit now and getting prepared to get a mortgage.There are some programs that go down to 580. Not all buyers know that the mortgage lenders use a different scoring model when it comes to mortgages, compared to the one you can find for yourself through the credit bureaus. The score has slightly different criteria.
Certainly talk to a few mortgage companies. Like most Realtors, I have a few to recommend as well.

I am in the process of organizing some Free learning seminars in Montclair this spring on how to improve credit, what it takes to qualify, how to get the best terms, repair credit etc. If you want to be notified when we will start them, just contact me or send me an e-mail. Educating yourself now is great and you may be able to get a pre-approval for financing sooner than you think!

Mercure Volt

Elite Realtors of NJ

0 votes
Robert and S…, Agent, Montclair, NJ
Sun Apr 7, 2013
Generally you need a credit score of over 640 and at least 3 trade lines to get a mortgage. There are some FHA programs available with lower scores that have some restrictions but your situation needs to be analyzed by a professional mortgage person to see if you qualify. What type of income you have and how long you have been on a job is critical today. There are some good FHA programs with 3.5 percent down payment but, again, you need additional criteria to qualify. There are grant programs available through the state of NJ which are offered once in a while but they are limited and you are on a draw system once you have a contract in hand. I'm not sure if that is even available at this time. If you are a teacher, police officer (civil servant-type employment) or the like, there are sometimes other mortgage programs available.
I have excellent mortgage contacts who can even help you bring your score up since, often, there are a few key points to doing that within 30-60 days that you may not be aware of.
Do feel free to contact me through this site if you need further information. I work with first-time home buyers on a regular basis. I enjoy helping helping people like yourself if possible.
Sandra Bolcar, Broker Associate
0 votes
Hi Sandra
I would like to need more advices by mortgage broker about how to fix my credit to get approve a mortgage loan.my credit score under 600. I working for beauty salon ang get pay mostly cash.im looking for condo or house in NJ within 150.000 up to 230.000. Will make 20% down. Can u pls email me at sweetlove_79nj@yahoo.com for more detail.looking forward from u.thanks!
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