Can I get a mortgage if Ms. Jackson is a credit score below 620?

Deal Score0

My husband is truying get a mortgage. This is our first home. His three scores are 595 578 550th What score do they use? Do you know where or how we will raise the score fast?

  1. Reply
    February 9, 2011 at 7:45 pm

    They will use the 578, but it doesn’t matter, none of those will fly, no one will lend him money. He is a sure fire bet to default.

  2. Reply
    Beverly S
    February 9, 2011 at 8:16 pm

    We use the middle of the 3- 578 in your case. No programs now for scores that low. The only way to raise scores is to pay down debt, get incorrect info off the credit, and pay things on time. You can have a mortgage company do a “rapid rescore” but that only works if you do the things above first. There is no “magic” way to increase credit scores. It’s alot faster to bring a score down that to bring it up.

  3. Reply
    Ryan M
    February 9, 2011 at 9:00 pm

    1) Which one they will use depends on the lender. Some will use the middle score, some use averages, some us the lowest.
    2) There is no way to raise a score “fast”. Credit takes YEARS to build on purpose….it is DESIGNED that way. Even under best case circumstances, your score only goes up about 3-5 points a month on average. You cannot be irresponsible with credit and think that there is a quick fix to erase that behavior. Your credit score is a reflection of your credit HISTORY. There is nothing that you can do NOW, that will affect credit HISTORY. Any hiccups in your credit will stay with you for 7 years.
    3) Unless you have enough money for a 30% down payment, NO lender will give you a mortgage with those credit scores. You are about 100 points shy.

  4. Reply
    February 9, 2011 at 9:32 pm

    1) Big down payments offset bad ficos – you would need to put down at least 35% to fly.

    2) If his fico is mostly short debt history getting co-signed by a relative with a better score is an easy fix.

    3) If his fico has many 60 day+ payments, charge-offs, revolving debt > 20% of available credit; then this is a different matter. Pay off all revolving debt, keep one cc, run it up to the max and pay it off every month. Wait a year – you gotta play the game.

  5. Reply
    Roger C
    February 9, 2011 at 10:22 pm

    Immediately if you have $ 184,000.

    Without more info about your income and expenses no way to answer this.

  6. Reply
    February 9, 2011 at 10:43 pm

    Most mortgages allow you to make additional monthly payments and pay off a mortgage early. If you are thinking of refinancing the mortgage, you can use the proceeds from the refinance to pay off the loan in full.

  7. Reply
    February 9, 2011 at 11:18 pm

    6.95% is too high! chances are, if the banks are charging you that much, they don’t believe you will ever pay off the loan. If you have an awesome, secure job, you will probably want to refinance this loan after two years.

    But, if you can wait, wait. A lower rate can save you money. If you can build up a bigger down payment and keep up with your bills, your credit score will improve and you can get a lower rate.

  8. Reply
    Tim D
    February 10, 2011 at 12:15 am

    Your payment to pay it off in 40 years as written $ 1136.76/mo

    30 years – $ 1217.98/mo
    20 years – $ 1421.03/mo
    15 years – $ 1648.70/mo
    10 years – $ 2131.66/mo
    7.5 years – $ 2629.14/mo
    5 years – $ 3639.08/mo

    If you’re serious about paying this off early refi to a shorter term loan with lower interest will cut your payments.

    If your credit is good you should be able to lock in a 30 year note instead of a 40 for around 6%.

    At 6% for 30 years your payment would be $ 1103.17. This is a savings of $ 114.81/mo against the 30 year payment posted above. Even if refinancing costs you $ 2500 in closing costs you will break even on this move financially in 22 months.

    For a 15 year fixed at lets say 5.75% your payment could be $ 1527.95. This is a savings of $ 120.75/ mo and could break even with closing cost of $ 2500 in 21 months.

    Unless you’re loan came with a prepayment penaltiy you can pay it off anytime. Even if it did they are usually 3 years or less.

    If you’re serious about paying off your house. Refinance, lower your interest, and pay as much extra as you can.

    These rates stated above are at 0 points and a minimum credit rating of 680.

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