I want to be approved for a FHA mortgage loan, but my credit score is 509. My debt to credit ratio is 96%.?

Deal Score0

I will be a first time homebuyer. Most of my debt is student loans and my income is 29,000 per year.

4 Comments
  1. Reply
    HuaracheKid
    May 16, 2011 at 6:03 am

    Wow – that is a HIGH debt to credit ratio and your credit score..is well….icky. Do you know your debt to income ratio? Based on the info. given, you will have a VERY difficult time getting a home loan.

    The debt-to-credit ratio is a proportion of your credit line and your credit limit. As a general rule, your debt-to-credit ratio is in great shape if you use less than 30% of your available credit. With a debt-to-credit ratio of 30-50%, you will generally see a 10-20 point reduction on your credit score, with 50-70%, an approximate 30 to 50 point reduction, and with higher than 70%, your credit score will significantly reduce by about 70 to 100 points. Thus, if you have high debt balances, in order to improve your credit, you should pay off your debts or lower your balances. To calculate your debt to credit ratio, divide your debt balance by your credit limit. As an example, if you have a $ 5,000 credit limit and your balance is $ 3,000, you have a 90% debt-to-credit ratio.

  2. Reply
    bdancer222
    May 16, 2011 at 6:46 am

    What’s your revolving debt to available limit ratio? Carrying balances of more than 30% on your credit cards hurts your score. Pay down the balances and you get a quick score boost.

    Student loans are not revolving credit. They are a different category.

    Have you pulled your credit report to find out what else is on your file? 509 is pretty low and you are not likely to get approved for a mortgage. Is it lack of credit history or derogatory items?

    You need at least 24 months of consistent, on time payment history to see some improvement in your score. If you have derogatory items, now is the time to start negotiating settlements.

  3. Reply
    Tina
    May 16, 2011 at 7:16 am

    FHA’S NOT ALL IT’S CUT OUT TO BE!! I HAD NO CREDIT AT TIME OF PURCHASE BUT THEY WENT THE LOAN ANYWAY!! MY PAYMENTS WENT FROM $ 200.00 A MONTH TO $ 500.00 IN A FEW YEARS AN NO CHANGE IN INCOME!! FEEL FREE TO IM OR EMAIL ME WITH ANY MORE ???

  4. Reply
    Marry M
    May 16, 2011 at 8:15 am

    yes its possible for you to get a mortgage loan with the credit score of 509.don’t worry its better for you to try for an online loan.i think that the below website will help you to find right solution.

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