Have tried FHA, and other avenues, to no avail. Have tried cleaning up credit, but it hasn’t helped much. High rent I am paying makes it hard to pay other bills on time. Trying to buy and hopefully lower my monthly payment. Any advice would be greatly appreciated.
How can I (with a poor credit score of 530) get approved for a home purchase loan that isn’t outrageous?
15
Apr
Middy S
April 15, 2010 at 7:22 pm
A lot of the equation for approval has to do with income to debt ratios. With a 530 you *might* get a loan, but of course your interest will be a lot higher.
I assume that you have already tried to consolidate your existing debts, or seek bankruptcy protection or at least credit counciling?
dougzinboston
April 15, 2010 at 8:15 pm
Cleaning your credit will take time, but it is your best option. Mortgage companies will call to verify balances if you KNOW they are lower then what the reports are showing (they tend to be 2 months behind). You would need to talk to your mortgage companies. There are two types of loans, Prime and Sub. Sub tend to carry higher rates but aren’t as strict.
If you failed via FHA, claening your credit report should become your #1 priority. You need to look at all your bills and otehr expenses and begin to see where you can trim your spending. It’s the only way you can begin to get ahead if you can’t get a second job.
ajd1bmf
April 15, 2010 at 8:16 pm
It doesn’t sound like you should really be considering home ownership until after your credit score starts climbing into the 650-700 range. If you are dead set on owning then you could always consider land contract. The only downside to that is whether or not your credit will be any better when it comes time for financing.
If I were you I would considering finding a cheaper place to rent until my score improved.
Thoughts Like Mine
April 15, 2010 at 9:00 pm
before you consider buying a home you have go to go back and clean up all of your derogatory accounts.
especially since the mortgage company is going to make you do it anyway.
530 says to potential banks / mortgage companies that you aren’t likely to pay them back, so why would loan you any money at all.
the quickest way to fix this is to take it on the chin and pay all that old stuff back.
You’ll be surprised at how easy getting a loan is once you done it.
N3WJL
April 15, 2010 at 9:47 pm
You can’t so just chill-out and rent for awhile. You don’t need to own a house right now. If you think your rent is high a house will be worse. Things will go wrong, you’ll have taxes and insurance to pay that you don’t pay now. It’s not cheaper to own by any means!
mmorganloans
April 15, 2010 at 10:21 pm
It is hard to not have a high interest rate with a low credit score.
One way to get a lower payment is to do an interest only/arm program. There are a lot of people who would not recommend it because of the fact that you are not putting any principal towards the home and due to some states that are experiencing ” the bubble burst” in real estate.
Usually after 2-3 yrs you can always refi to a fixed rate once your credit score is up and will be able to find a lower interest rate. If you do a fixed rate now, your payments could range anywhere from $1800 and up, and more than likely you will be looking at a interest rate of %12 or higher; depending on the loan amount that you are looking for.
I live in Washington State and have over 140 lenders to work from. Please email me for more info; we can do some out of state loans and I have lenders that are licensed in all states. I will also give you info to help with your credit.
Luckys Charm
April 15, 2010 at 10:29 pm
work on yiur score.
abreublues
April 15, 2010 at 10:45 pm
We may be able to help. Email me at mabreu@significacorp.com