How can I get a home mortgage with 585,583,583 credit scores?

Deal Score0

I know those scores are not very good, but we have done everything we can to repair our credit and it’s just not going up much at all. We have paid off all old debt. We have nothing in collections and 3 open accounts in good standing. One of our open accounts is my car loan that we have had for 2.5yrs and we have not been late in 6months. The other 2 open accounts have never been late. We are going to have to sign another 1yr lease on our rental in 4months if we can’t buy before then. Is there any way we can buy a house with these credit scores? Even if we have to get an unfixed rate for now that might be an option. I just don’t know where to go and who to trust really. Our bank won’t finance us even though we have our car loan, a small secured loan and our checking and savings with them. Both loans have been in good standing and we still can’t get them to finance us for a house. Is there any option for us?

  1. Reply
    mar c
    May 17, 2011 at 12:12 pm

    the option is to get another job or two/….pay down your debt,improve your credit and save like crazy……

  2. Reply
    May 17, 2011 at 12:39 pm

    My credit score is right on that level and Im actually in the process of closing on my home. Ask your realtor about an FHA loan for the home. Its a government program to help first time home owners. Right now with the economy they’re doing everything in their power to help people get into homes. Only thing is you need to put down 3% of the total cost of the home to buy it. Plus yuo get real good rates. My score is a 590 and I’m getting my home at 6.01% fixed rate (which is real good considering my credit score).

  3. Reply
    May 17, 2011 at 1:14 pm

    I agree w/ mar c.
    And to expand,
    Trust no one,
    Forget about buying a house for about 2 yrs. During that time educate yourself on the various mortgages, benefits and drawbacks of each, as well as the histories of those types of mortgages. And if you think that you already know this stuff I have to say, you dont if you think that “an unfixed rate for now” would be an option you should pursue. During this time get a 2nd or 3rd job if needed.

    I can give you a lot of pointers on how to fix improve your credit but you absolutely must realize that what is way more important is your ability to afford not only the house, but the utilities and maintenance. Both will be more than renting.

    Send me an email if you really want to increase those #s.

  4. Reply
    May 17, 2011 at 1:36 pm

    You have not been late in 6 months? That is one big problem. 6 months is a very short time in terms of credit.

    Best way to guarantee a mortgage is to have a 25% down payment.

  5. Reply
    May 17, 2011 at 1:43 pm

    Forget about buying a house for now. I’m afraid you have an unrealistic view of how soon your credit score should improve after taking steps to repair your credit. You say you “have not been late in 6 months” on your car loan. That’s good compared with where you’ve been, I suppose, but people with really good credit scores are NEVER late with payments. Having a late payment that is only six months old is a certain red flag to the banks that you can’t always be relied upon to pay your bills on time. To prove them wrong you will need to go for at least another year or two with no late payments.

    One thing that you definitely should be working on is building an emergency fund. That’s one thing that’s really essential to avoid late payments. Otherwise you will be ok for a while, but sooner or later a crisis will occur – unexpected car repair, emergency medical bill, or the like – and you will fall behind again. Having a handy source of cash in an emergency fund will prevent the next crisis from hurting your credit score. Getting in the habit of putting money into savings every month will also allow you to work on building a down payment on your house. In a couple of years the combination of improved credit score and a large enough down payment should allow you to buy the house that you want.

    Good luck.

  6. Reply
    Martin S
    May 17, 2011 at 2:20 pm

    I Can Help With Your Mortgage!

    I would love to assist you. Email me back, and let’s discuss!


    I am on line now!

  7. Reply
    May 17, 2011 at 2:53 pm

    Having a good credit score (also known as a FICO score) during an economic downturn gives a person a huge advantage over someone with a poor FICO score. Typically, when the economy turns sour, there are bargains to be had, particularly in the real estate market , that are only available to people with large amounts of cash on hand (not likely), or people with good credit who can borrow and make bargain basement real estate investments. Applying for loans and other unsecured lines of credit credit just makes life a lot easier for you in a bad economy. So what can you do right now to improve your FICO score?

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