Posted on: 29th Dec, 2009 02:49 pm
hello,
i have been reading that you need a 620 credit score for an fha loan, but i have some questions.
first, my situation:
my credit scores are as follows
experian 602
transunion 663
equifax 650
i also have a chapter 7 bankruptcy 4 or 5 years ago.
also, because i am not the brightest, most of my credit cards are maxed out.
what are my chances of getting a fha mortgage, or any type of mortgage for that matter?
what percentage would i have to pay down my credit cards to get a credit boost large enough to get a loan?
how long does it take from the time of payment to the time it raises my credit score. i know my credit card companies report every month but how long does it take for my score to increase?
basically, i just don't want to go into a loan office and get laughed out the door. if i have no chance i would like to know so i don't go through the embarrassment, i already embarrass myself plenty.
i know everyone says it but i really do appreciate any help or someone pointing me in the right direction.
i have been reading that you need a 620 credit score for an fha loan, but i have some questions.
first, my situation:
my credit scores are as follows
experian 602
transunion 663
equifax 650
i also have a chapter 7 bankruptcy 4 or 5 years ago.
also, because i am not the brightest, most of my credit cards are maxed out.
what are my chances of getting a fha mortgage, or any type of mortgage for that matter?
what percentage would i have to pay down my credit cards to get a credit boost large enough to get a loan?
how long does it take from the time of payment to the time it raises my credit score. i know my credit card companies report every month but how long does it take for my score to increase?
basically, i just don't want to go into a loan office and get laughed out the door. if i have no chance i would like to know so i don't go through the embarrassment, i already embarrass myself plenty.
i know everyone says it but i really do appreciate any help or someone pointing me in the right direction.
653 middle score is plentifully sufficient. you don't cite your income, so we can't calculate a debt ratio, but your maxed out credit cards won't help.
nobody is going to laugh you out a door - they all want your business. if you're not ready, then find someone who will help you out while you try to get ready. be sure whoever you begin to rely on is trustworthy. get referrals from others who've purchased homes who you know.
nobody is going to laugh you out a door - they all want your business. if you're not ready, then find someone who will help you out while you try to get ready. be sure whoever you begin to rely on is trustworthy. get referrals from others who've purchased homes who you know.
Income is roughly $35k/ year.
I did use the loan eligibility calculator on this site and it says debt to income ration 43%.
I can possibly pay down my credit cards 20%, but would it do much good going from 95% to 75% usage?
And thanks for the quick response above.
I did use the loan eligibility calculator on this site and it says debt to income ration 43%.
I can possibly pay down my credit cards 20%, but would it do much good going from 95% to 75% usage?
And thanks for the quick response above.
Hi andersentrav!
Welcome back to forums!
As you pay off your credit card debts to some extent, your credit score would get a boost though it won't rise immediately. However, your lender will be happy to find that you've taken the initiative to pay off your debts. However, as far as I know, the conventional financing debt to income ratio is 28/36 whereas for FHA the limits are typically 31/43.
I would suggest you to speak to some of the local lenders and check out whether or not they would approve your loan. You may even speak to the lenders of this community and seek a no obligation free mortgage consultation from them. This will help you know whether or not you would get approved for a loan.
Feel free to ask if you've further queries.
Sussane
Welcome back to forums!
As you pay off your credit card debts to some extent, your credit score would get a boost though it won't rise immediately. However, your lender will be happy to find that you've taken the initiative to pay off your debts. However, as far as I know, the conventional financing debt to income ratio is 28/36 whereas for FHA the limits are typically 31/43.
I would suggest you to speak to some of the local lenders and check out whether or not they would approve your loan. You may even speak to the lenders of this community and seek a no obligation free mortgage consultation from them. This will help you know whether or not you would get approved for a loan.
Feel free to ask if you've further queries.
Sussane
So what should my debt to income ratio be before I walk into the bank?
It is 43% or so right now, I am guessing i need it down to around 36% to 38% before I try?
It is 43% or so right now, I am guessing i need it down to around 36% to 38% before I try?
Welcome back andersentrav,
You are correct. You should have a debt to income ratio of 36%.
You are correct. You should have a debt to income ratio of 36%.