Posted on: 09th Feb, 2010 08:35 am
My credit score is 604, however I do have collection accounts on there that I just recently paid off, I also have a car repo on there that is 5 years old. What is the odds I would qualify for a FHA or rural development loan?
jenna, some lenders will look favorably at you with a 604 score; most will not. one thing that you'll find in most every case is that all collections/judgments, etc. are to be paid in full before you close. there may be someone who'll ignore your open obligations, but those lenders are fewer and farther between than ever before. you're more likely to be approved at a reasonable interest rate if you bump your score to at least 620, pay off whoever else you still owe and wait until then to apply.
Hi Jenna,
Gmakerley is absolutely right. With a score of 620, it is possible to get a mortgage. In fact, the more your score, the more are your chances of qualifying for the loan. Therefore to increase your score, you need to pay off any dues that you have and in addition maintain those accounts on which you are current(if any).
Check your credit report, mainly the details of the collection accounts that you recently paid off. If you had done an agreement of Pay for delete with the collection agency (CA), then it should reflect as "Paid in full", else if you had settled the amount with the CA it should reflect as "Paid as agreed" or "Paid as settled".
Thanks,
Lydia.
Gmakerley is absolutely right. With a score of 620, it is possible to get a mortgage. In fact, the more your score, the more are your chances of qualifying for the loan. Therefore to increase your score, you need to pay off any dues that you have and in addition maintain those accounts on which you are current(if any).
Check your credit report, mainly the details of the collection accounts that you recently paid off. If you had done an agreement of Pay for delete with the collection agency (CA), then it should reflect as "Paid in full", else if you had settled the amount with the CA it should reflect as "Paid as agreed" or "Paid as settled".
Thanks,
Lydia.
