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strifex316
Joined: 04 May 2008
strifex316's page
Posts: 1
51 Magic Points
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Subject: Buying a house with bad credit
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Sun May 04, 2008 9:14 pm
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| I would like to buy a house later this year but I have a credit score of 545 and only about 5-6000 to put down. I have about 6k in debt and 2 small collections. Is it possible for me to buy a house by November? Thanks! |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4285
127 Magic Points
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Mon May 05, 2008 10:48 pm
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| Yes I believe it is possible. try first to pay off those two small collections. Showing you paid them will look good on you along with having a down payment. Paying these debts will also give your score a little bump up. Good Luck. |
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sdchargers_63
Joined: 13 Aug 2007
sdchargers_63's page
Posts: 1889
1356 Magic Points
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Subject: house
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Tue May 06, 2008 11:37 am
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| Yeah..i would say you probably could. It's usually easier to finance something, that you have collateral for ( collateral would be your house). have you talked to different banks/finance institutions about % rates? |
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george
Joined: 06 Jul 2006
george's page
Posts: 71
2859 Magic Points
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Tue May 06, 2008 11:46 am
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I too think that it would not be much of a problem. As you are purchasing a house, it will itself serve as a guarantor.
_________________
George Miranda
Money does not buy happiness. Happiness is found in being content with who you are and what you have. |
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Swoosh
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Thu May 08, 2008 6:44 pm
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| Just keep in mind that the higher you can get your score before then (over 600 if at all possible) is REALLY going to help you. Right now, everyone is saying yes, you can get a house, but with the foreclosure mess right now, mortgage lenders are cracking down on those with less than perfect credit, and you will pay a premium (9+ plus interest) with a score like that. Don't mean to discourage you, but just something to keep in mind. |
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Justin
Joined: 17 Jul 2006
Justin's page
Posts: 1240
28942 Magic Points
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Fri May 09, 2008 8:17 am
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I think that Swoosh is correct. You should first pay off your existing debt and then go for another one. This will also help you in improving your credit score.
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All the Best 
Justin |
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Guest
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Sat May 10, 2008 8:00 pm
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| Thanks for the advice everyone! I haven't spoken with a lender yet but that will be my next step after I pay off my collections. Does anyone know if going through consumer credit counseling ( the non-profit kind, not the repair services) makes any difference to lenders? |
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Morningstar
Joined: 17 Apr 2007
Morningstar's page
Posts: 582
11 Magic Points
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Sun May 11, 2008 4:19 am
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No new credit will be extended to you while you are in the plan. However, when you complete the program, your score should rise.
_________________
I don't dream since I quit sleeping |
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george
Joined: 06 Jul 2006
george's page
Posts: 71
2859 Magic Points
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Mon May 12, 2008 10:40 am
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Hi guest
Morningstar is correct. Going for a debt management plan or a credit counseling service does not affect your credit report. The credit score rises only if you make a consistent debt repayment of the entire debt amount.
_________________
George Miranda
Money does not buy happiness. Happiness is found in being content with who you are and what you have. |
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Katsarov
Joined: 24 Feb 2008
Katsarov's page
Posts: 16
823 Magic Points
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Thu May 15, 2008 5:53 pm
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Hi, You
You need at least 580 mid scores and you are qualif. for a FHA loan on 5.5 interest and .5 % insurance with only 3% down. Now, the scores from MyFico are the closest to the lenders calculators scores. For sure dont purchase your scores from trans union site or their providers cuz they always show higher and you will be badly surprised apling for a loan. If your coll. are in the last one year and you paid them off it will increase your fico with at least 30 scores so it will put you really close to what you need. make sure that before you pay them you have in written from the CAs, that they will remove the coll. from your report. After that go on fico simulator to see how much you need to pay towards your credit cards to raise your scores with another 5 to 10 more. And.....enjoy your new home. Remember, no lender will give you less than killing rates under 580 fico |
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Katsarov
Joined: 24 Feb 2008
Katsarov's page
Posts: 16
823 Magic Points
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Thu May 15, 2008 5:57 pm
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Hi, You
You need at least 580 mid scores and you are qualif. for a FHA loan on 5.5 interest and .5 % insurance with only 3% down. Now, the scores from MyFico are the closest to the lenders calculators scores. For sure dont purchase your scores from trans union site or their providers cuz they always show higher and you will be badly surprised apling for a loan. If your coll. are in the last one year and you paid them off it will increase your fico with at least 30 scores so it will put you really close to what you need. make sure that before you pay them you have in written from the CAs, that they will remove the coll. from your report. After that go on fico simulator to see how much you need to pay towards your credit cards to raise your scores with another 5 to 10 more. And.....enjoy your new home. Remember, no lender will give you less than killing rates under 580 fico |
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anthony
Joined: 31 Jul 2006
anthony's page
Posts: 516
13571 Magic Points
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Fri May 16, 2008 5:05 am
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Hi strifex316
I think you can try the way as Katsarov suggested. It is really a good suggestion and I hope will help you to increase your score which will enable you to get a loan from FHA to purchase your house.
_________________
Anthony Marx
A positive attitude is not achieved by turning a blind eye to the negative, but rather by responding to every situation in the most positive way possible. |
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CMBV22
Joined: 08 May 2008
CMBV22's page
Posts: 364
4811 Magic Points
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Sat May 17, 2008 10:21 am
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Another thing that you need to remember is to beware of your debt/ income ratio. If a bank sees that you will have more then 30 ir 40% of your income consumed by your new and current debt they will also give you less favorable terms on a loan. So be carful about taking out any debt consolidation loans.
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****************************
Free sample letters,
info on paying off payday loans,
and quick credit repair tips.
Pesonalized credit repair advice in the forum:
www.homecreditrepair.net
http://homecreditrepair.hqforums.net/ |
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imready
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Subject: i want to buy a house
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Sat Oct 18, 2008 2:10 am
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| Please help me.......I have a credit score of 585 and my student loans went into default. I have been renting a home for a year that I want to buy. I have paid on time every month. I'm ready to buy my house but I don't know if It's possible under my situation. The govt. takes my income tax return for the past 5 years. I am ateacher so I have steady income. I make about 40,000 a year. Is it possible? |
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Credit Solution
Joined: 15 Oct 2008
CreditSolution's page
Posts: 16
323 Magic Points
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Sat Oct 18, 2008 11:25 pm
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| The best for you is concetrate in you credit try to improve it first and then apply for a loan. |
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