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At FICO Score of 630, can I get mortgage or improve score?

Posted on: 02nd Feb, 2006 11:06 am
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.

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
Posted on: 09th Sep, 2008 05:32 pm
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 %?
Posted on: 12th Sep, 2008 02:20 am
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

VA has no down payment requirement, but it's always good to have 1-2months of reserves in your bank account.
Posted on: 12th Sep, 2008 06:00 am
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.
Posted on: 12th Sep, 2008 07:05 am
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.
Posted on: 12th Sep, 2008 07:09 am
I have been working on raising my credit score and would like to know the minimum credit score for obtaining a fha mortgage loan.
Posted on: 08th Oct, 2008 06:28 pm
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.
Posted on: 09th Oct, 2008 07:14 am
how does a repayment plan affect your credit on a mortgage
Posted on: 04th Jan, 2009 05:44 pm
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.

Posted on: 05th Jan, 2009 12:59 am
I suggest to build up your credit by reducing your debt it will help you out in the long run for buying a house.
Posted on: 10th Feb, 2009 11:40 am
I own a house in Redford Mi, for 110K and I want to start a family and purchase a house in a better area for 170k, my income is 75k per year and my girlfriend's income is 40k however our credit isn't very good. she has a foreclosure on her from 2007 and my score is 630. Can I get approved for another mortgage for 170k? I plan on renting my current home in redford out.
Posted on: 01st Oct, 2009 06:43 am
you can get FHA loan. you need to have min 620 credit score. since you are think to give your current house on rent, you would get it easily.
Posted on: 01st Oct, 2009 10:01 am
As per my view 680 is good credit score for the better interest rate.
Posted on: 01st Oct, 2009 10:37 am
well, steve and anny thanks for your 2 cents, but let's fix this:

]"you would get it easily," steve says. not so fast...a lender is going to look closely at how much equity you have in your current home, where it is located in comparison with what you are buying, and ask for documentation for it to make sense to move from your existing home to a new property. also, you're going to have a good portion of equity (30-35%) in that property.

as for anny's comment about credit score: if we are talking about an fha loan (and we definitely should be), then the score you noted at 630 won't get in the way of financing. 680 is a wonderful thought, but not necessary in order to qualify.

ladyjess, your income certainly ought to work, and if all else fits, you'll get approved - i hope your current mortgage is not an fha mortgage.
Posted on: 02nd Oct, 2009 01:29 pm
In this market unless you are doign FHa, you will need more than 680 to get a loan at good interest rate
Posted on: 02nd Oct, 2009 09:08 pm
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