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Can I qualify for a mortgage with poor credit?

Can you advise me whether or not we can currently qualify for a mortgage under any circumstances, and if not, what do we need to do to be able to qualify.
    My situation: I am a 50 yr old male. Recently been through some hard financial times but have started the recovery process. Divorced 2 years ago from an out-of-control alcoholic who drank us into some debt which I'm currently managing. Laid-off and out of work for 2 years. Lost home to foreclosure in 2008. No bankruptcy. Current credit score 608. Renting home for 2 yrs. Full-time employment since Aug. 2010. Income $52,000 per yr.
    Her Situation: She has been separated for 3 yrs.and is 42 yrs old. She owns a home with her ex-husband but is not on the mortgage (just on the title). Current market value of that home is approx. $375,000. Her credit score is 781. But she has no regular income having worked part-time and seasonal jobs for the last few years. 
    We can come up with a down-payment of 10%, possibly more if needed. Can we secure a mortgage based on her credit score and my income without being married? What if we were married? Can we qualify with a co-signer? Can I qualify on my own with a score of 608? If we cannot qualify under any circumstances, what do we need to do to become qualified?
  • April 12 2011 - Aquia Harbour
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Answers (5)

In other words, just call James Ryan.
  • April 13 2011
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Hi Johnrinva....

The answer is maybe...You really need to find a trusted loan officer to sit down with you and go over your situation, then discuss with you the options presented by your situation. A good loan officer will either get you pre-approved now, or design a map for you to use to get from where you are now, to where you wish to be at some future day. There are a few very good loan officers here on Zillow that I am sure would be happy to work with you!
I love the Aquia Harbor area, almost bought a home on the Creek two years ago.
Jim, HSOA, Chantilly, VA.
  • April 13 2011
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You should be able to buy, but a couple of items need clarification:

1. you didn't mention when your home was foreclosed and what type of financing you had. FHA, VA or conventional. That could be a sticking point,

2. Also not sure of your monthly obligations either.

All programs have a waiting period when a borrower has a foreclosure in their credit history. So you need to find out what the requirements are for your situation.  Hope this helps

.

  • April 13 2011
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You have a situation that sounds complicated. First, your credit score should not be an issue. You should be able to be approved under FHA with your current credit score. Your income alone should be sufficiant to purchase a home under $180,000. Second, with her situation, I do not think she will be able to stand alone qualify. If she is still married you will need seperation papers. Her credit is great, but without a full-time job it is unlikely she will be able to be added to the loan for you both to qualify for a higher loan ammount. A co-signer is another option. Your next step might be to contact a mortgage professional and ask them to look at your situation. I hope this was helpful.
  • April 12 2011
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FHA announced new policy changes in January.    New borrowers can have a FICO as low as 580.

Read through this link and contact a local lender to discuss specifics of your file.

http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2010/HUDNo.10-016
  • April 12 2011
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