What interest rate should I expect for a 1st time buyers mortgage with a credit score of 590?

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I have been on the job for 7 years, income 75k, sales job, single w/ 2 kids. In California, loan amount to be 250k. 100% financing.

3 Comments
  1. Reply
    Doctor J
    April 30, 2011 at 9:50 pm

    You will Pay! 75K? Why is your credit so bad? Pay off your debts. Pay all of your bills in full and on time. This will improve your credit score. Build up enough savings for at least 10% down – this will give you a margin of safety. By the time you do these things, the prices in the housing market in Cal. will have come down, so the house will cost you less and the loan will cost a lot less! (And, most importantly, you won’t lose your home to foreclosure in 5 years!).

    Best wishes.

  2. Reply
    Bornredprincess
    April 30, 2011 at 9:59 pm

    Most finance companies want at least a beacon score of 600.
    You unfortunately will most likely incur a higher interest rate. Check to see what the prime rate is right now, and know that the prime rate is for people with good to excellent credit.

  3. Reply
    mortgageguy
    April 30, 2011 at 10:13 pm

    Mid 7 percent on the 1st mortgage and 10-12% on the 2nd. Give me a call at 1-866-597-2968 x11 (I’m a mortgage consultant) and I can tell you for sure. You may qualify for 100% conventional financing with slightly higher mortgage insurance.

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