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Can I Buy A House With A 650 Credit Score All Locations : Nationwide Real Estate Advice

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Showing results for Can I Buy A House With A 650 Credit Score [Clear search]
Christine Mc…, Real Estate Pro in Valparaiso, IN
Mon Sep 22, 2014
Christine McDaniel answered:
I'm assuming you're looking for financing. Below is a link to Real Estate Resource. They work with several different lenders, they may be able to help you.

Good Luck,
Christine ... more
0 votes 3 answers Share Flag
Shane Milne, Real Estate Pro in South Jordan, UT
Thu Mar 22, 2012
Shane Milne answered:
You posted a similar question at but you seemed to have added a little different information and were able to squeeze your question in too (Trulia really aught to allow more characters within the initial question).

For the basis of my $1,950/mo estimate in your other question, I was using a 4% interest rate on a loan amount of $216,905 ($213,911 + 1.4% VA Funding Fee), which gives a principal/interest payment of $1,035/mo. Property taxes of $808/mo ($9.7k/year). Insurance of $100/mo ($1,200/year) = $1,943/mo.

When your offer is accepted on a short sale by the seller, it still needs to go to their own bank for review/approval. If you are the first offer, that process can take many months (3-6 months isn't uncommon), as the sellers bank needs to confirm the value of the property/compare it to the amount the seller has accepted, as well as get approval from the investor of the seller's mortgage (this isn't usually the same as who they make their payments to). After all of that is done, then the seller's bank will issue a "short sale approval" which usually matches the terms that the seller has accepted... but sometimes it is different/less favorable to the buyer and then you need to determine if you want to accept the seller's bank short sale approval terms. If there has already been a previous accepted offer but the buyer bailed out for whatever reason, and all or part of that process has already been done, then it may just take a few weeks to a couple months for the new short sale approval to be issued (there was one situation where the bank was ready to approve a new offer within 1 week - talk about a short short sale).

I am not sure how property taxes are reassessed in Pennsylvania, but it could very well be based on the new sales price. You can actually figure it out on your own. You can call up the township & county to find out what they base their assessed values on - and if a sales price for much less than their current assessment happens, would they take that into consideration. Hopefully a real estate agent from this area will chime in with exact specifics on this though. In California that is how it is done though, it's all based on the new sales price (which can drastically change the amount of property taxes - up or down).
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0 votes 24 answers Share Flag
Shane Milne, Real Estate Pro in South Jordan, UT
Tue Dec 13, 2011
Shane Milne answered:
Hi Gil, it sounds like the bumpy credit was 24+ months ago and so your credit history should be in good condition for FHA financing, you'll have more lending options (and easier underwriting) with the scores you are aiming for, but your scores now would also be OK (it looks like you got them from or - either place gives FICO scores which is what us mortgage lenders use). If all you have is the student loan & credit card debt (which you'd be paying off you say) then I don't imagine the student loan payments would get in the way from you qualifying for what you are looking at (unless the payments are like $1,500/mo - which I doubt). At a $150k sales price, 3.5% down payment, on an FHA loan including taxes/insurance/mortgage insurance, you could expect your total payment to be about $1,075/mo. You said you and your mom would be living there, there is a down payment assistance program called CalHFA, but it has household income limits - you can check more information on it at ... overall you look to be in pretty good shape to qualify. I'd suggest you and your mom attend a first time homebuyer education course before though, it'll help you understand the homebuying & mortgage approval process and what to expect after you own your new home. ... more
0 votes 5 answers Share Flag
Lauryn Eadie, Real Estate Pro in Reston, VA
Tue Jul 10, 2012
Lauryn Eadie answered:

Contact Terry Schenck with Prosperity Mortgage.; 703-502-3252.

He can answer your questions about how to get you into a home loan!

Good luck,
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0 votes 6 answers Share Flag
Tim Moore, Real Estate Pro in Kitty Hawk, NC
Fri May 6, 2016
Tim Moore answered:
Dawn Kephart, Real Estate Pro in MT POCONO, PA
Fri Oct 14, 2011
Dawn Kephart answered:
0 votes 5 answers Share Flag
Don Tepper, Real Estate Pro in Burke, VA
Thu Aug 30, 2012
Don Tepper answered:
You really need to see a Realtor and a lender. Find a Realtor, then ask for a recommendation on a lender.

As for the mortgage: Interest rates are incredibly low now. Nothing wrong with a 30-year fixed rate. If you're pretty sure you'd be there only 5-7 years, there are some ARMs with ridiculously low rates. Again, though, check with a lender to see what would be best for you.

You can't normally get a mortgage without a down payment. If you're a veteran, VA loans are 0% down. Some counties and cities have special incentive plans--a lender would be able to fill you in on that. FHA only requires 3.5% down.

Congratulations on your credit score, by the way.

But don't be too quick to knock renting. It's true you'll never own the place. But sometimes renting is the best option. And it's not money down the drain: Your rent is providing you a place to live. And if you take a look at amortization charts (charts that show how much of your mortgage payment actually goes to paying off your loan when you're buying), you'll see that in the first few years relatively little goes to paying off what you owe. Your monthly payments might be about $560 (that's a real rough number), of which only $110 would be going to pay off the principal. And when you're renting, you don't have to worry about repairs, especially expensive ones like a new roof, new HVAC, etc.

Still, start off by finding a Realtor. (There are lots of threads on Trulia about how to select one.) Ask the Realtor for suggestions regarding a lender.

Good luck.
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0 votes 9 answers Share Flag
Alisha Chen,  in Irvine, CA
Sat Nov 15, 2014
Alisha Chen answered:
Hi Bravo:

There are some loans that you may be able to qualify, depending on the extend of your credit report. There are also credit repairing companies that can help you. There are constant changes in the lender and real estate field. The most important is to see where you are now and how to prepare you to get you where you want to be. Sometimes the progress will take some time, but the main thing is, knowing what you need to do in the shortest amount of time to get there. Feel free to contact me & I'll be happy to go over your situation with you.

Alisha Chen
(949) 385-1588
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0 votes 45 answers Share Flag
Andrea Wince…, Real Estate Pro in Milpitas, CA
Thu May 30, 2013
Andrea Wince ~ Lic. 01439761 answered:
It will depend upon your other current debt, how much of a down payment you would make toward a purchase and your income/debt ratio. It is best to submit all your financials to be analyzed by a mortgage lender. This is a free service to preapprove you. Your current situation (and past history) will determine what interest rate you will receive and how much of a house they will finance for you. If you would like a referral to a mortgage consultant, please email me through my Trulia profile. ... more
0 votes 10 answers Share Flag
Tina Lam, Real Estate Pro in San Jose, CA
Thu Jul 7, 2011
Tina Lam answered:
The gating factor is your down payment. Right now you have about 5% while barely covering closing cost. Some banks may do 5% down up to $417K. Also you should check out FHA loan. Work with a loan broker to find the best options for you. ... more
0 votes 5 answers Share Flag
Anna M Brocco, Real Estate Pro in Williston Park, NY
Fri Sep 27, 2013
Anna M Brocco answered:
There are other factors that determine qualification in addition to credit, such as employment, savings, debt., etc, therefore consider visiting with any qualified loan officer; after reviewing your overall financial information a determination on qualification can be made--if you don't yet qualify, he/she may offer great suggestions as to what needs to be done in order to qualify in the near future. ... more
0 votes 8 answers Share Flag
Dallas Texas, Real Estate Pro in Dallas, TN
Mon Oct 31, 2011
Dallas Texas answered:
Confer your questions to a mortgage broker some lenders may not allow loan when you all ready own another property.

Many lenders had investments properties returned due to economy have a tendency to shy away with anyone owning more than one home.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
... more
0 votes 6 answers Share Flag
Get-smart, Other/Just Looking in Durham, NC
Mon Mar 28, 2011
Get-smart answered:
you might be able to try owner financing or lease with the option to buy. owner financing is better if you can find it because then the owner of the property becomes the bank which means favorable terms. ... more
0 votes 10 answers Share Flag
Kim Stawicki, Real Estate Pro in Irwin, PA
Sun Mar 6, 2016
Kim Stawicki answered:
I think you may have a chance, but there are some conditions...some of the guidelines have been relaxed a little in the past week or two. Please give me a call when you have a few minutes and I'll hook you up with a lender you can talk to. ... more
0 votes 15 answers Share Flag
Ray And Karen…, Real Estate Pro in Mount Dora, FL
Thu Sep 1, 2016
Ray And Karen Levy answered:

If the home is in an area approved for USDA.

The lender must also be USDA approved.
0 votes 21 answers Share Flag
Phil Rotondo, Real Estate Pro in Melbourne, FL
Sat Jan 14, 2017
Phil Rotondo answered:
If you are applying for social security disability or have been approved for SSD and currently receive benefits, the issue of home ownership is a non-issue.

In fact, the issue of assets at all is a complete non-issue. SSD is considered a federal insurance entitlement. In other words, you pay into the system over several year via work activity (and this is the case whether you have your fica contributions deducted from a paycheck or you are self-employed and have to "settle up" with the IRS annually or quarterly) and if you own one home or twenty homes it makes no difference.

SSI disability, however, is different. SSI is need-based and SSI disability benefits are available to adults and children who are not insured and, thus, not covered for social security disability insurance benefits. For SSI, assets are absolutely a consideration and, in fact, the cap on assets for this program is two thousand dollars. Meaning: you cannot have more than two thousand dollars in countable assets and retain eligiblity for SSI.

Obviously, any home will be worth more than two thousand dollars as an asset. However, countable assets for SSI disability eligibility does not include the residence you live in. So, to answer the question we began, "can you buy a house or home if you receive Social security disability or SSI?", we can state the following----

1. For social security disability, it doesn't matter and assets are not a consideration.

2. For SSI, assets are a consideration in determining a person's eligibility, but will not be an issue as far as one's residence is concerned. Real property will, however, be a consideration for any real property that is owned aside from one's residence. And in such cases, the fair market value of excess real property will be used to count against the two thousand dollar asset limit for SSI disability.
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0 votes 85 answers Share Flag
Tim Moore, Real Estate Pro in Kitty Hawk, NC
Fri Jan 14, 2011
Tim Moore answered:
You find a very few homes that will offer owner financing (aka land contract aka rent to own). With interest rates so low those that could offer financing, and wish to sell, want to sell and buy something rather than wait and hope you will actually buy the house in a year or two. Everyone knows that those rent to own deals rarely work out and the owner will be stuck trying to sell the house in a year or two if you don't buy it. ... more
0 votes 9 answers Share Flag
Alan Strange, Real Estate Pro in Westminster, CO
Tue Apr 3, 2012
Alan Strange answered:
You'd be surprised for what you might be able to qualify. There are some variables but what you've mentioned above may be something you can work through. The worst case would be that you may need some guidance in building up your score. Most lenders will lend to you once you've been two years away from the bankruptcy. We have a program that helps people build their credit with no cost or obligation. We'd love to show you some things to make yourself eligible to take advantage of the market we are in.
Wishing you well.
... more
0 votes 16 answers Share Flag
12,  in 80112
Wed Jul 17, 2013
12 answered:
You are renting i assume: who is writing the contract; make sure you review the contract to purchase very, very carefully. Check with your bank or a mortgage Company on your qualification. 607 score maynot get you finance; dont sign any contract until you get financing and follow the proper term of purchase.
Robert D 417-839-6369
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0 votes 11 answers Share Flag
Tim Moore, Real Estate Pro in Kitty Hawk, NC
Tue Oct 11, 2016
Tim Moore answered:
I would suggest you talk with a loan officer and ask about FHA loans that require a 3-3.5% down payment.
0 votes 22 answers Share Flag
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