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Answers (9)
- lilmissthing
- Contributions:11
Hi Sunnyview,
Thank you so much. Let me correct my closing date, I closed on 9/30/2011. And I closed with a very sweet interest rate!! The card that I had was the Public Savings Bank card. I'm not sure if they still offer the card, because another bank took over. But I received a Capital One Secured Card with a $49 deposit and a $200 credit limit last month. After a year or so, Capital One will convert the card to a nonsecured, if my payment history is good. My goal is a 700 middle score and I know it's possible.
I hope this encourages any one who has been credit challenged. Don't beat yourself up about the mistakes from the past, just look forward.
Peace
Thank you so much. Let me correct my closing date, I closed on 9/30/2011. And I closed with a very sweet interest rate!! The card that I had was the Public Savings Bank card. I'm not sure if they still offer the card, because another bank took over. But I received a Capital One Secured Card with a $49 deposit and a $200 credit limit last month. After a year or so, Capital One will convert the card to a nonsecured, if my payment history is good. My goal is a 700 middle score and I know it's possible.
I hope this encourages any one who has been credit challenged. Don't beat yourself up about the mistakes from the past, just look forward.
Peace
- Rchan81
- Contributions:73
Sunnyview - Capital One has a secured credit card, but carries an annual fee.
- sunnyview
- Contributions:25127
lilmissthing, that is great to hear and congratulations! I did some reading and it looked like Orchard had a good card to rebuild credit scores, but I'd love it if you'd share the card name that got the job done for you.
Many people looking to buy ask that question on Zillow and it's always helpful to hear it firsthand from someone who had a good experience.
Many people looking to buy ask that question on Zillow and it's always helpful to hear it firsthand from someone who had a good experience.
- lilmissthing
- Contributions:11
My middle score was in the high 500s when I started the homebuying process in June of 2011. I utilized a secure credit card to bring my score up. When I closed my home on 9/30/2012, my middle score was a 656. Just make sure that credit card issuers reports to all three bureaus.
First of all, your rate would not be 9%, it would be in the low 4's at the most. FHA allows credit scores down to 500, the problem is that people with scores that low usually have other issues that disqualify them. It's not the score, it's what is causing the score that will probably kill the deal. You could still apply anyway to see if you fit the mold.
- Cindy Quinton, "Cindy Quinton"
- Contributions:1322
Fix your credit.
Go to www.annualcreditreport.com and get copies of you credit report.
Then go www.myfico.com and read on the forums, then read some more. Then start asking specific questions about what all you can do to fix your credit. I have raised our lowest score about 80 points in about 2 months. It isn't easy and there is a lot to learn, and you may need some money. I've paid about $300 in bills, put about $2000 in secured cards, and I borrowed against a CD. However, you don't have to have as high of limits as I used.
Bottom line, educate yourself and fix it yourself. You simply can't trust most of the credit repair companies, and most lenders either don't have a clue how to fix credit issues or they aren't willing to commit the time and effort it will take. If you go to myfico you will find many, many people who have been there and done that and are willing to advise you.
- Todd Wilson, "Private Money Todd"
- Contributions:6
You have two choices on which direction to go on this.
First, you should find out what can be done to improve your credit score and second, you could find a way to come up with a higher down payment so that you could get a hard money loan.
Typical hard money lenders will want to see anywhere from 30% to 40% down payment in order to buy a house. Rates will typically range from 10% to 12% depending on your down payment and how strong of a borrower you are. This is determined primarily by looking at your credit score and employment.
Even if you decide to go with hard money, it is important that you work on your credit so that you are able to refinance into a conventional loan as soon as possible. This will save you money in the long run.
- Mark Wilkins, "TheMortgageMark"
- Contributions:349
You should start working on your credit. Have someone review your credit report with you and figure out why your credit scores is 518. With a little bit of work and time you can improve your credit scores.
- Dave Skow, "daveskow"
- Contributions:1104
Don't think so .....Best bet is work on improving credit history
FIco score 518
Question, is there anyway I could qualify for any type of mortgage loan with a fico score of about 518-525. I understand that my interest rate would be about 9% or so which I will not argue, I don't have 35,000.00 to put down either. But I will have close to 8000.00 come 02/2012. Could I still qualify for a first time Mortage with a low fico score with a pre qualified letter for 60 day's? You can email me at Jennifer74nj@aol.com Thanks Jennifer
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