Posted on: 01st May, 2010 07:40 am
I have a middle credit score of 610, I just paid off everything on my credit report last week. I have 5,000.00 in bank for downpayment ,can get 2,000.00 more by next month. I don't want to rent anymore, I have 4 children I want an honest, non bias answer of my chnces for getting approved. I have no other debit nor do I own any credit cards. I have a judgement also
Close, but not quite.
FHA loans require a minimum credit score of 620, and other lenders are going to require at least the same. If you just paid off your balances then you may see a jump in your credit score within the next few months. I would recommend waiting a month or two for your recent payments to have an effect then talk to a local lender.
The money you have for a down payment will depend on the price of the home. FHA would require a 3% down payment while conventional loans could be 5% and up.
Also, you mentioned you don't own any credit cards. Credit cards can actually be beneficial to your credit score. They increase your amount of available credit, give you more credit history, and also enhance your credit mix. As long as you don't overspend with them (keep balances below 30%) they can help raise your score.
- Just a quick caveat, it is not always wise to open credit accounts too soon before applying for a mortgage. Recent requests for credit can temporarily lower your credit score a little.
FHA loans require a minimum credit score of 620, and other lenders are going to require at least the same. If you just paid off your balances then you may see a jump in your credit score within the next few months. I would recommend waiting a month or two for your recent payments to have an effect then talk to a local lender.
The money you have for a down payment will depend on the price of the home. FHA would require a 3% down payment while conventional loans could be 5% and up.
Also, you mentioned you don't own any credit cards. Credit cards can actually be beneficial to your credit score. They increase your amount of available credit, give you more credit history, and also enhance your credit mix. As long as you don't overspend with them (keep balances below 30%) they can help raise your score.
- Just a quick caveat, it is not always wise to open credit accounts too soon before applying for a mortgage. Recent requests for credit can temporarily lower your credit score a little.