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Gigi143
LIF Toddler
Member since 6/12 435 total posts
Name:
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Not so good credit and buying a house
My husband and I have okay credit, but it's nothing spectacular, has anyone bought a house with a low credit score?
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Posted 9/21/12 3:43 PM  |
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Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
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Re: Not so good credit and buying a house
You should consult with a mortgage professional to see whether you can qualify with your current credit scores, and if not, what you can do to improve them. Some of my clients (including LIF'ers) have worked with a reputable credit repair service to raise their scores to qualify for a loan (some of them were able to do it in a matter of 2 or 3 months). Sometimes there are extensive issues, but other times, it's just a matter of cleaning up your credit report (their may be inaccuracies you are unaware of that can be quickly resolved).
It also depends on what type of loan you want to get. FHA has less strict credit requirements than Fannie Mae/Freddie Mac (i.e., conventional) loans. Also, some lenders impose their own requirements above and beyond the "floors" set by the loan programs.
Also, your credit is only one piece of the picture when it comes to qualifying for a mortgage. Debt-to-income ratio is another huge factor. If you have stellar credit, but a lot of long-term debt without enough income to offset it, you will have issues qualifying. Keep in mind that lenders want "documentable income" so it can be hard for self-employed people (who take a lot of tax write-offs that lower the income on their tax returns) and people who work off the books to establish adequate income.
Again, talking to a loan officer about your specific situation is your best bet. Let me know if you would like some recommendations.
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| Posted 9/21/12 4:50 PM |
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Gigi143
LIF Toddler
Member since 6/12 435 total posts
Name:
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Re: Not so good credit and buying a house
Thanks! We are going to meet with someone next week. We have no debt aside from my student loan, so i guess that is a plus, lol.
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| Posted 9/21/12 4:52 PM |
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DRMom
Two in Blue
Member since 5/05 20223 total posts
Name:
Melissa
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Re: Not so good credit and buying a house
My husband does mortgages for Wells Fargo. In NC minimum score is 620 for FHA loans.
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| Posted 9/22/12 10:06 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Not so good credit and buying a house
Posted by DRMom
My husband does mortgages for Wells Fargo. In NC minimum score is 620 for FHA loans.
I have a few companies in NY that will do loaner
FHA is not a credit score driven loan
if you have income and other things in your favor it's better
but low score + needing a concession- wont happen
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| Posted 9/24/12 11:26 AM |
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Gigi143
LIF Toddler
Member since 6/12 435 total posts
Name:
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Re: Not so good credit and buying a house
We don't need concessions, of course it would be nice, lol. We do have a down payment, not a full 20% but probably 10-15% we are pretty positive we have to do FHA loan.
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| Posted 9/24/12 1:03 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Not so good credit and buying a house
you will have to do a FHA if your credit isn't over 700
having that much to put down will help greatly
and maybe your credit isn't a not so great as you think
they might be able to offer suggestions to get it up and you can rapid rescore
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| Posted 9/24/12 1:05 PM |
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