Profile picture for AlexWays

CAN I PURCAHSE A PROPERTY>>>?

CAN I PURCHASE A PROPERTY IF I HAVE A 480 CREDIT SCORE WITH 20,000 FOR A DOWN PMT. ON A 180,000 DOLLAR HOME?? IS THERE ANY PROGRAM OUT THERE THAT CAN HELP ME. IM ALSO A FIRST TIME HOMEBUYER. THANKS
  • July 09 2012 - Los Angeles
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Answers (6)

Profile picture for Cindy Quinton
DO NOT close any and all credit cards, that will only bring you lower. Paying them down will raise your scores, but don't close them. Closing them will affect your average age of accounts negatively, but paying them will reduce your debt to credit limit ratios positively. 

You can get copies of all three of your major credit reports at www.annualcreditreport.com and you can get a lot of advice (good advice!) from www.myfico.com. I've been able to get ours up about 140 points in less than a year, so there may be hope for you. I know people say that lenders will assist you, but when you have a more than 3 months work to do, no one will hold your hand. Figure it out yourself and fix it.
  • July 11 2012
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Profile picture for De Luz Agents
I would meet with a mortgage broker and ask them to run a credit analysis.
This will give you a road map of what you need to do to bring up those credit scores.
  • July 11 2012
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Profile picture for Ofe Polack
I suggest that you meet with at least two mortgage brokers, and ask them to put you on a plan to improve your credit score.  Good luck!
  • July 11 2012
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I would suggest reviewing your credit history to verify the accuracy of your scores. Also, have you spoken with a mortgage broker about your particular situation?

Best Regards,
Adrian
  • July 10 2012
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You need to check on why your credit score is so low. It takes a lot of work to get a score as low as 480, that's very unusual. Write to the 3 credit bureau's to get full credit reports so you can review them. About the only way to get a credit score that low is to open dozens of credit accounts and never making a payment on any of them. So either there are major mistakes on your credit report or you are years away from being financially responsible enough to own a home.

Start today, step one, never make another payment late, step 2, close any and all credit accounts you're not using (even if you have a balance, you can close them and keep paying), Step 3, write the credit bureaus and get copies of your credit reports, step 4, write letters disputing anything on your credit report that you think is wrong or duplicates (sometimes a credit card may report you late, then sell your debt and they report you and then they sell your debt and they report you late, etc) so you could have 4 or 5 derogatory reports for one credit card. Step 5, pay off any and all debt you still have and step 6 keep saving money, saving money proves you're finacially stable.  You've dug yourself in a huge hole and now you need to just get back to the surface before you worry about building a mountain. 
  • July 10 2012
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Profile picture for wetdawgs
No.   With a 480 FICO credit score, you could only purchase with cash. 

A few lenders will go down to a 580 FICO middle score for FHA loans, with VA loans (if you are eligible) lenders may accept lower scores.   

You are proposing one of the biggest financial commitments of your life, therefore, putting together a plan and strategy makes a lot of sense.

Do you know why your credit scores are so low?    Have you pulled your annual free reports to see what is being reported?    Do you have a strategy for improving your credit scores?

You've done a good job of saving for a down payment.  With FHA at the moment, 3.5% down payment is needed.  Plan on about 3% for closing costs (may vary) plus have 3 to 4% in a home maintenance slush fund.



  • July 09 2012
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