MORTGAGE FOR MID 500 FICO SCORE?
NiNAMiMaDa206 Asked: MORTGAGE FOR MID 500 FICO SCORE?
My husband and i are looking to buy a home priced at 244,900 we make approx 65,000 a year, i have past due medical debt and he has never built his credit with an auto loan or any other installment loan, my fico score is 545 his is 580. i recently paid off an auto loan within 8 months from the purchase date which was too soon to improve my credit which i was told later, but it shows i am good with my obligations. does anyone know where i can get lending for this home with our current status? we have been renters for 10 years and have never owed or been evicted, our rental history is excellent. please leave your email address or the email address of the person you know, if you know a lender that can help. thank you, j.s.
Answers:
You are within the affordability range. Keep in mind any loan is possible for a cost.The issue is how much "finding a credible source."In this market I do not believe that is practical.
You might try looking for a For Sale by Owner and seeking someone who can carry back the note themselves.
As for a source try Zillow.com – otherwise you will be trying to put a round hole in a square peg, because whatever the reason a FICO score of 580 is not that awful, except most legitimate lenders want 620.The issue will be how much time it will take to rehabilitate your credit to avoid being ripped off or to try and find a seller who is willing to carry back the note/payment, until you are in a position to refinance and pay them off.
Good luck
You don't need an installment loan to build credit or a major credit card.I did not have an installment loan until my first mortgage (at 26) and I had excellent credit (high 700's).You need to pull your credit reports and find out what you can do to raise your scores.It sounds like you need to pay off the medical debt, and I'm not sure if your husband has an debt, but if so… get it paid off.Currently, you aren't going to get any mortgage with scores below 600… unless you can find a private lender who will risk it, but be prepared for high interest rates.It is fantastic that your rental history is great and that you paid off a car loan so early, but you need to look at the other areas that are affecting your credit scores… and take action to improve them.Your income is good and if your down payment is high enough, you could afford a 250k home (need about 40k-50k to put down though).