Home Loan With Poor Credit?

hello, my 3 credit scores are 680 - 540 - 520 is there anyone that will approve me for a home loan? I also have 20K to 25K to put down on said house, i have had my current job for almost 8 years, so far i have come up empty any help would be appreciated thank you !


The only thing i have in collection is a 70$ medical bill i didn't even know about

7 Answers

  • 7 years ago
    Favorite Answer

    Find a mortgage lender is authorized to do FHA mortgage loans. The down payment is around 3.5% and the requirement approval is not as stringent as a conventional mortgage loan.

    Buying a house is a step by step process, this is the first step you should take in order to purchase a house. The rest of the steps will fall in place, no matter the type of property you are purchasing.

    In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, you can find one in your local telephone book.

    Make sure this mortgage broker or mortgage banker is able to do government loans such as USDA, FHA and VA loans if you qualify for one. With a VA mortgage loan you are not required to have a down payment, this will save you on closing cost.

    He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.

    The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.

    When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.

    #1 One month of pay stubs for each person that will be on the mortgage.

    #2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.

    #3 Two years of federal income tax along with the W-2 that match.

    Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.

    Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.

    Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments.

    If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.

    You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.

    Make sure your mortgage broker explain all your options so you may make an intelligent decision.

    What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.

    So select the best option for you and your financial situation.

    You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.

    Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign. Your mortgage broker will now order an appraisal to show proof of the property value.

    The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed.

    After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.

    Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.

    I hope this has been of some benefit to you, good luck

    "FIGHT ON"

  • 7 years ago

    For a mortgage you cannot have any items in collections.

    You have these.

    No bank will lend to you otherwise.

    Ask here how to negotiate settlements with those collection agencies.

    Or get a book on Credit Repair.


    Items under $100 do not affect your credit score.

    My Fico. com / education.

    So something else besides this medical bill is hurting you.

    You NEED to be honest here if you want this house.

    What happened to your credit? Ask in another question and get real help.

    Get those 3 credit reports and print them.

    Annual credit report.com https://www.annualcreditreport.com/cra/index.jsp

    Go through them tooth and nail.

    There IS something you are missing.

  • 7 years ago

    Not until you bring those below 600 scores up into the 640 and above range. The real estate crisis forced lenders to look at their policy for issuing sub-prime mortgages and the decision was basically to eliminate sub-prime and no doc mortgages as a means of strengthening the risk management portion of the business.

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    4 years ago

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  • 7 years ago

    nope. you have a credit score of 520. It needs to be 630.

    pay off the 70 bill ASAP with the help of a lender. Ask them to do a rapid rescore. It will not bring it up to 630 right away, but it will start to go up.

  • Anonymous
    7 years ago

    Would you loan money to someone that has a poor credit record?

  • Anonymous
    3 years ago

    A lot of insightful answers here

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