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bradsudz · Joined: 09 Mar 2010 Posts: 1 1.49 Dollars($)

Hi, I got myself into quite a big hole and have been trying to dig back out of it. Long story short I made close to 6 figures about 3 years ago but lost my job and now work as a paramedic making around 35K a year. I lost everything (house, car, etc...) as a result my credit score hit the skids. I am the sole income provider for me, my wife and my two kids. We have been renting a home now for 2 years and would really like to buy the same home. I paid alot of stuff off and disputed a lot of stuff and no longer have a foreclosure on my credit. I never declared bankruptcy but I still have a car repo, some old credit cards that are reporting negatively and I have very very little good credit. My FICO is about a 570 and we are stretched to the limit on our budget but pay all of our bills. I really want to buy the house I am living in as my mortgage would be far less than the rent and the landlord is allowing us a portion of our rent payments towards our purchase deposit.

My question is could a non-relative but very close family friend of ours that does have a good score be able to cosign for us even with the outstanding items on my credit, or would those need to be remedied first. I'd pay them if I had it but doing the math on a 4 person family living on 35K a year... not much left over every week.

Anyone have any advice or know if this is even feasible?

Niicss · Posted: Wed Mar 10, 2010 2:56 am Post subject:

With a credit score of 570, it won't be possible for you to get a mortgage. You should have a credit score of at least 600-620 in order to get a FHA loan. If you are planning for a conventional mortgage, then should have a score of 700-720. If you have a co-signer, it would be easier for you to qualify for a mortgage. You will be able to get a mortgage though you have negative items on your credit report.

Posted: Wed Mar 10, 2010 8:04 am Post subject:

Hi Bradsudz,

Unfortunately a co-signer will not help you at this point. Lenders are going to require that all parties have a mid score of at least 620.
There are a couple of wholesale lenders that will do FHA mortgages with scores under a 580 but for the most part lenders now require a 620.
Your best bet is to continue working on your credit.

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