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daniellelredmond · Joined: 09 May 2011 Posts: 2 1.54 Dollars($)

Can I buy a housw with a 630 mid credit score?. I know FHA only requires 620 credit score but I am finding out that lenders have overlays. Are there any lenders that will accept a 630 credit score?

davidbaker · Joined: 21 Apr 2011 Posts: 24 7.49 Dollars($)

I know lately a 640 mid score is required. They have programs that go down to a 620 but I believe there are some factors.

What has your credit score at a 630?

What is your time line for buying a house?

chrisgummerson · Posted: Mon May 09, 2011 1:36 pm Post subject:

Hello Danielle,

You can find lenders who will fund to a 620 fico. To get better access to rates, you should focus on increasing your credit score. Keep in mind, keep your balances under 40% of the credit limit. Keep a balance, dont pay to 0 and leave unused. Credit takes into account, the length of time the account has been used, the balance to credit limit, ect. You can also pay off old delinquencies, and clean up derogatory accounts. Good Luck

daniellelredmond · Joined: 09 May 2011 Posts: 2 1.54 Dollars($)

I don't know what has my credit score at 630. I just paid off all my bills except my car. I pulled my credit report and a couple of accounts show as charged off??

I'm trying to move in august

chrisgummerson · Posted: Mon May 09, 2011 1:46 pm Post subject:

What state are you looking to purchase?

davidbaker · Joined: 21 Apr 2011 Posts: 24 7.49 Dollars($)

It sounds like your situation is fixable. I would need to see your credit before offering you any specific guidance. Chris is right on point when he's telling you to not close any credit card/revolving accounts and NEVER EVER go above 40% of your limit. This effects about 85% of your credit score.

If you have no open accounts, then you need some positive credit besides just a car loan. You can become an authorized user on someone's card they've had for a long time which will immediately report all of their positive payment history on your credit. (which is the best thing to do if you're trying to get in by August) Or you can get a secured credit card or line of credit, which takes a little more time.

Regardless, you want to effectively dispute the negative items including those charge offs and any late payments or former collections you may have had. It's a 90-120 day process, which should keep you right around your target date.

kpatrick · Posted: Mon May 09, 2011 2:59 pm Post subject:

Hi Danielle,

David is right on regarding getting added on as an authorized user. Just be sure that it is an account that is paid on time, and depending on your debt ratio, it may need to have a low balance and a low pymt.

I just finished working with a client where we did just this, and her score inceased 20 pts in 30 days. So, August is definitely doable.

Lastly, there are loan programs for scores as low as 620. The rates are slightly higher, but they are still good rates--5%. There are additional "hoops to jump through", so your best bet is to get together with an experienced Loan Officer who can help you navigate the process.

Good Luck!

smithsussane · Posted: Mon May 09, 2011 8:31 pm Post subject:

Welcome back, kpatrick... It's good to see you back after a long time! Smile

Posted: Tue May 10, 2011 4:23 am Post subject:

Thanks Sussane.

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