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My FICO score is 630. I have credit card debt of 70K. Mine used to be 690 couple months ago(50k debt). I had to take money for personal investment(95% of credit line used).

I was thinking of buying an house(340k). What would you guys suggest? Will I get a mortgage with this score?

Wait until my score improves? I was thinking of paying off 90% of debt in 3-4 months.

Thanks

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I OWE $15000 ON A HOME IN NORTH CAROLINA AND DO NOT WANT TO SELL THIS HOME [MORTGAGE $560 MONTH. I WOULD LIKE TO BUY A HOME IN ATLANTA, WHERE I NOW LIVE BUT I AM AFRAID MY DEBT TO INCOME RATIO WILL DISQUALIFY ME FROM PUCHASING A $240,000 HOME. I MAKE 5500 A MONTH, HAVE $30,000 IN STUDENT LOANS THAT I HAVE TO START REPAYING WHEN I FINISH SCHOOL. I HAVE NO OTHER DEBT. MY CREDIT SCORE IS $680. WILL I QUALIFY TO PURCHASE THIS HOME.

Like | Dislike | Share | Posted: Fri, 05/16/2008 - 00:28 | Post subject:

larry2's picture
larry2 | Joined: June 27, 2007 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi FELECIA,

Welcome to the forum.

Your credit score is good and you have sufficient income. So you may get the mortgage. Have you yet shopped for any lenders? If not then you should do it.

The rates are low now. So it is a good time if you have sufficient income every month. How long are you in your present job? Have you made any late payments in the last 12 months? If you have then it may effect and create problems to get approve for the mortgage.

Feel free to ask if you have any further questions.

Best of luck,
Larry

Like | Dislike | Share | Posted: Fri, 05/16/2008 - 02:55 | Post subject:

bastogne.inc's picture
bastogne.inc | Joined: May 18, 2007 07:34 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

You say you have 5500 in monthly income but you haven't finished school yet? You might want to establish your income for a period of time before you go applying for that mortgage, stability of income and all that jazz.

Like | Dislike | Share | Posted: Thu, 08/07/2008 - 19:46 | Post subject:

s.mckaybiz's picture
s.mckaybiz | Joined: April 24, 2008 08:05 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Bill S I defintately agree that you should pay down that credit card debt first.

Felecia, a question, if you make $5500 a month do you really think you can afford a $240K home? Is 5500 gross or net? Me and my wife make about $75K/yr, have about 6K in credit card debt, and are looking to buy a home for about $70K just to play it safe. $240K just seems a bit excessive with the kind of money your making. Would you consider buying a less expensive home?

Good luck!

Like | Dislike | Share | Posted: Sat, 08/09/2008 - 15:36 | Post subject:

banker0679's picture
banker0679 | Joined: November 15, 2007 10:05 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

FHA loans will help you avoid HIGH PMI costs if you're planning to put less than 20% down. The rates are also favorable, and sometimes better than your normal conventional rates

Like | Dislike | Share | Posted: Tue, 09/09/2008 - 17:32 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

WE MAKE ABOUT 96K PER YEAR AND HAVE 35K FOR A DOWN. MY CREDIT IS POOR AT 620 TO 630ISH HER CREDIT IS FLAWLESS. WHAT CAN WE BE APPROVED FOR A MORTGAGE?

Like | Dislike | Share | Posted: Fri, 09/05/2008 - 05:38 | Post subject:

sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi MARCO,

You have good income and the money you're putting down isn't less either. What's your credit? Is it 620 or 630? If your spouse's credit is good enough, I guess she could be there as the cosigner for the loan if at all you need to take the mortgage now. Because I feel you could try and repair your credit before going for the loan.

You can calculate [i:b039dca2f2]how much you can borrow[/i:b039dca2f2] using the [url=http://www.mortgagefit.com/calculators/]mortgage calculator[/url] at http://www.mortgagefit.com/calculators/howmuch-borrow.html .

Take Care

Like | Dislike | Share | Posted: Mon, 09/08/2008 - 05:15 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

marco, if you're looking for an fha loan, that's your best bet. with a credit score in your range, it would behoove you to go that route, as conventional loans will have pricing adjustments that will hurt you.

Like | Dislike | Share | Posted: Tue, 09/09/2008 - 11:16 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am in the military and my credit score is about 630 and I plan to buy a house in six months when I return home from Iraq. I have zero credit card debt, I dropped 13k and payed off my car. so I am in debt about 14k on my truck. I spoke with a lender and they told me they do there own calculation on my credit score and it is a much higher score then what trans, equf, and exper. gave me by atleast 50 to 60 points which by there calculation puts me around 690. Is this right do mortgage companies really do there own calculations like that? and since I am appling for a va loan should I have a down payment, and if so how much %?

Like | Dislike | Share | Posted: Fri, 09/12/2008 - 02:20 | Post subject:

banker0679's picture
banker0679 | Joined: November 15, 2007 10:05 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Michael...Welcome to MortgageFit.

Lenders don't have their own calculations for credit. They however use a different scoring model. We use FICO which is different than the actual credit scoring system that Equifax, Trans, or Experian uses.

If you want a near to accurate score, the you should check it on myfico.com

VA has no down payment requirement, but it's always good to have 1-2months of reserves in your bank account.

Like | Dislike | Share | Posted: Fri, 09/12/2008 - 06:00 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

marco, with a score of 620 or higher, you're still well-qualified for an fha mortgage. you didn't state where you are located, but you will want to seek out a local state-run bond program if one exists. these bond programs are aimed at first-time homebuyers and typically allow for lower rates than can be found anywhere else.

barring that, rates are good and apparently getting better, so an fha mortgage wouldn't cost you any additional penalties due to your credit score, and it would seem from your income and current asset picture that you'd qualify for a fairly substantial mortgage.

by all means don't be discouraged - find a lender who is willing to scout out the possibilities with you and move forward.

Like | Dislike | Share | Posted: Fri, 09/12/2008 - 07:05 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i guess i didn't realize there's a second page of comments here - i see i already responded to marco. nevertheless, at least i expanded on my earlier comments.

as for michael...some lenders claim the use of a different model that gives them elevated scores, but i agree with my old friend banker that there really isn't going to be much benefit there.

honestly, with a score of 630, and working on a va loan, michael; i don't think you'd have any difficulty in working with just about any lender you choose. rates are good, and as noted, you won't need a down payment. i concur that having reserves is always a favorable item.

Like | Dislike | Share | Posted: Fri, 09/12/2008 - 07:09 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have been working on raising my credit score and would like to know the minimum credit score for obtaining a fha mortgage loan.

Like | Dislike | Share | Posted: Wed, 10/08/2008 - 18:28 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

fha truly doesn't have a minimum, though you will generally run into underwriters who will take a long, hard look at credit. if your score is below 600, you'll be charged extra - compensation for the risk.

you're more likely to have success with a low score if there are several compensating factors, and that would include some recent favorable reports from creditors. if your payment history is consistently fair to poor, you're much less likely to be successful.

Like | Dislike | Share | Posted: Thu, 10/09/2008 - 07:14 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

how does a repayment plan affect your credit on a mortgage

Like | Dislike | Share | Posted: Sun, 01/04/2009 - 17:44 | Post subject:

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi tara

As far as I know, after a loan modification when a lender gives a alternative repayment plan, I don't think it affects your credit score.

Thanks.

Like | Dislike | Share | Posted: Mon, 01/05/2009 - 00:59 | Post subject:

m.snover92571's picture
m.snover92571 | Joined: February 10, 2009 09:53 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I suggest to build up your credit by reducing your debt it will help you out in the long run for buying a house.

Like | Dislike | Share | Posted: Tue, 02/10/2009 - 11:40 | Post subject:

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