Is there a lender who will help me - I have a 602 credit sco

colleen_80 · Joined: 11 May 2008 Posts: 2 1.93 Dollars($)

I am a first time home buyer - trying to purchase my mothers home (she recently passed) and satisfy the obligation to my siblings who are other beneficiaries. I have a $52,000 year income and have been at my job 11 years - but my credit score is 602.

cliff · Posted: Sun May 11, 2008 2:35 pm Post subject:

Welcome Collen,

Did your mom have a will? If she did according to the will who inherited the house?

Jeanette · Posted: Sun May 11, 2008 6:40 pm Post subject:

Welcome to Mortgage Fit Colleen-80

You appear to be in a position to get a loan with no problem. Once your credit score is above a 580 then you are good in that area. Your income looks like you should have a DTI (Debt to Income Ratio ) of around 43-50 percent, depending on all your current expenses on your credit report. Once in your job over two years that is very good stability.

You should not have any problem getting a lender to prequalify you for a loan to purchase your mom's house.

Thanks,
Jeanette Smith
Union Mortgage Group
Virginia Beach, Va

larry · Joined: 27 Jun 2007 Posts: 3051 428.03 Dollars($)

Hi Collen,

Welcome to the forum.

IS it that you want to buy out your siblings? Is it okay with them?

Now you have good earning and very employment history. At the same time your credit is not too bad. So you can get a loan. Have you shop around for lenders? You can even request for no-obligation free mortgage quote form the community lenders so that they can help you out.

Feel free to ask if you have any further questions.

Best of luck,
Larry

Caron

I think Cliff has a valid point here. If there is a Will which states that Colleen would inherit the property, then the question of buying it does not arise. Because frankly speaking I do agree that a 580 score can get her an FHA loan but conventional loans are very hard to get at such a score. Moreover, the FHA limit in her county has to be considered also.

Therefore, Collen, I suggest that you wait for some more time, fix your credit and then look out for a mortgage if there is no other claimant to the property. You may use the credit repair tool developed by this community and check for yourself how to fix bad credit.

Good luck

colleen_80 · Joined: 11 May 2008 Posts: 2 1.93 Dollars($)

First, let me thank you for the responses; I have received more help from you all in the last 24 hours than I have for the last 3 months! To answer some questions - According to the will, the house is to be sold with me as first chance buyer, and the money is to be split equally between all of my siblings. Unfortunately, waiting for my credit to improve is not much of an option as the siblings will not want to wait. Again, thanks!

Niicss · Joined: 03 Oct 2005 Posts: 885 130.68 Dollars($)

Welcome back.

You may get the mortgage but the rates may be higher. BTW do you have enough savings to pay the down payments and closing costs?

Larry has given you right suggestion. You can certainly ask for the quotes from the community lenders.

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