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629 FICO, Can I buy a home?

I want to be really up front to see if there is anyone that can help me.  My family wants to be in our new home before school starts in August.  Within the next 2 months I am going to pay off all credit card debt, hoping to increase my score.

We currently own a home, so we are not first time home buyers.  We will hopefully sell our home for $30,00 over what we paid as this is in line with the comps. We will use a large amount of that towards our down payment, but that money will not be available until our home closes.  Our income is about $90,000 a year and would like to purchase a home for $165,000 or less.

 My husbands FICO is higher than mine, when I pulled it last year it was a 662.  Can we even buy a home?  If so can you help? 
  • April 04 2014 - Stockbridge
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Answers (8)

Hi, if your credit history is clean, you have a 620+ score, debt ratio under 45%, and the automated findings come back as "approve/eligible" then you can get a conventional loan with Mortgage insurance with as little as 5% down. If you want to buy before your current home is sold, that is doable, we would just need to income qualify you with both payments. Love to talk to you more if you are interested in discussing further.
  • April 07 2014
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Luckily, your credit scores are definitely acceptable for most loan options. Lenders like myself can go as low as 580-620 depending on what type of loan you are seeking. With your current scores you have most lending options available to you such as FHA, conventional, VA, USDA, etc. There are other financial factors that would need to be analyzed including your income, expenses, assets, liabilities, debt, employment, down payment, as well as credit scores. If all of these factors are in place then you should be good to go. So the best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!
  • April 07 2014
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 I agree with Gmerino; there are several moving parts with your situation. The good news is that with good mortgage payment history and some cash for down payment you should have a few options. Finding a reputable local lender that you can meet with face to face is your best move, the sooner the better! Best of luck. Keith
  • April 05 2014
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Hello, Based on the picture you have painted you have the financial wherewithal to accomplish your goal. Like Gmerino stated go visit with a lender immediately. He or she will be able to lay out the steps you need to take to get you into the best financial position possible in your timeframe. Focus on whatever it takes to be approved for conventional financing. Good Luck!
  • April 04 2014
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Profile picture for GMerino
I would suggest you to speak to a loan officer right away to see what you pre-qualify for.  Give yourself the opportunity to see what products are available to you such as the conventional loan with a minimum of 5% down, or 10% down and there is FHA of course but with mortgage insurance being high these days. 

You are able to seek a pre-approval while your house in on the market.
  • April 04 2014
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There are many factors that go into a loan approval and credit score is one of them.  Based on just score alone you would be eligible for a Conventional loan, FHA loan or a VA loan (if you are a veteran).  I would connect with a lender to go through a proper pre-approval to find out what your options are.  Also, paying off your credit is important.  If you can increase your score by paying down your credit card (do not pay off until you have consulted with a lender as closing the account may actually hurt your score) you may find your interest rate and mortgage insurance (on a Conventional loan) will both improve based on you obtaining a higher credit score.

  • April 04 2014
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Based on what you said, you should be able to get a FHA or conventional loan.  With the FHA loan, you could obtain it with a 3.5% down payment and the conventional loan, 10% or more should be sufficient.  With the income stated, the loan you mentioned seems easily doable but we don't know what all your debts are like.  My company can accommodate both, I'm sure other companies out there can do both as well.  If you're interested in contacting anyone, you can click on their picture/name for contact info.
  • April 04 2014
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You should be able to get a Conforming loan with 10% down. If you would like to discuss you can send me an email by clicking on my picture, email address is there.
  • April 04 2014
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