Profile picture for user461066

Can We Get Approved?

Ok... So, my wife and I are looking to purchase our own house. We've rented all of our adult lives. We're both 28 years old. 

I'm a little new to the whole process and seeking some advice from you all. 

I have previously been married and from that marriage, ruined my credit. I have a credit score of only 575, but make good money. My wife has good credit, with a score of 725, but doesn't make a lot due to being a waitress. 

Total income grosses about $85,000. And looking for a $150,000 house and can put down $10,000. 

The question is... With my bad credit.. Is there any chance that we will get approved??
  • December 15 2012 - Wichita
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Answers (8)

Yes you can get an FHA home loan with a 580 mid score or even under, sure you will need more documentation than with a 640 score but that's expected. FHA has no score requirements, the banks and lenders all set their own score requirements. I have even seen 566 FHA home loans approved, it all depends on several factors. Visit our site and fill out the application form to get started. I will be more than happy to help you out. If we need to try and get your score up I can do that too,  expert in credit as well and can run a simulator to see what can be done to get you those extra points if needed. 


Take care! Look forward to hearing from you.. 

Randall
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  • May 10 2013
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As previously mentioned, the lender will consider the lower middle score between you and your wife. In this case your credit score will be the qualifying score for your home purchase. In general terms, for a regular FHA or Conventional loan, the minimum credit score requirement is 620. If you are a veteran who is eligible for VA loans, the minimum general requirement is 580. I would recommend that you pull your own credit report from all 3 credit bureaus (experian, equifax, and transunion). Once, this is done I would recommend that you dispute, through a reliable credit repair company or on your own, all negative items on your credit report. The disputes should be sent directly to each of the three credit bureaus. Once the disputes are received by the credit bureaus, the credit bureaus in turn contact the creditors to verify/validate the accuracy of the derogatory credit account. In a lot of cases, if the creditor simply does not respond to the credit bureau's request within 20 days, the derogatory account may automatically be deleted from your credit bureaus. It's common for old collection accounts to be deleted, once disputed, for many different reasons; example: your old collection account reported by XYZ collection agency that has been sitting on your credit is transferred or sold to another collection agency who also reports it on your credit, in this case once a dispute for innacuracy is sent, the XYZ collection would be deleted from your bureaus as they no longer service that account. This would help you improve your credit scores. Also, if you have credit cards, by paying the balance down to 35% or less of its credit limit, will help you gain a lot of points. I hope this helps and best of luck!

  • December 15 2012
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Profile picture for Mike Nielsen
All great answers.. and a great first step question.  I recommend that anyone thinking about buying a home meet with and talk to a couple lenders as  your first step (before going out with an agent).  Find out their requirements.  If they can pre-approve you, you will know where to set your home price search.  Wish you the best!  If you need lender recommendations, feel free to ask!
  • December 15 2012
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Profile picture for sunnyview
Good suggestion from MikeB03. The MyFICO forums have a lot of great information and helpful folks. A visit with an experienced lender can also be very helpful. They can make suggestions on how to get your financial house in order without stepping into any potholes.
  • December 15 2012
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Profile picture for MikeB03
I suggest going over to the MyFico.com forums and getting adivice on how to increase your credit score as fast as possible. One suggestion, if you arean't already on your wife's credit cards as an authorized user and her accounts are in good standings with low usage and have some history, get added on there, that wil help your score.
  • December 15 2012
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Profile picture for daveskow
focus on getting the  credit scores  up to 620+ .....meet with a loan officer ...get a tri merge  credit  report  ( one that all  3 credit  bureaus  on it  ) so you can see whats  on the report ...contact any creditors on items that might be able to  be  revised ...payoff  any collections  etc....
  • December 15 2012
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In talking to lenders in our area, 575 is a low credit score.  We suggest that you meet with a loan officer at 2 local banks.  If you don't qualiify now, ask the loan officers what you need to do to qualify for a mortgage in the near future.
  • December 15 2012
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Hello and thank you for your question.

Traditionally in regards to your credit score they will take the lower middle score between both of you.  

At that credit score I am not sure who might pre approve you.  The only way I know how is simply to find a mortgage professional who will provide an FHA Loan to you at that low credit score.

You may also want to work with a credit specialist who can work on repairing your credit therefore raising your score.

I hope this helps...


Chris Perez - Real Estate Finance - San Francisco, CA
  • December 15 2012
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