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Looking for Lenders that can give loans with 580ish scores

Im looking to purchase a possible fixer upper around the Stone Mountain Area (Georgia) and i have a credit score of at-least 585 or so. May be higher for the other 2. Almost 7 years on the job. Wife just started a small part time job after having our little one. Houses are ranging from 70k-100k. Ive been renting for 3 years in the current house and have never missed a payment. Will have about 5-7k to put down. Problem is I may have to sign my lease again as my time is running up in February unless i can work out a month to month. Any lenders on here that can help me find financing?
  • January 11 2014 - Stone Mountain
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Answers (5)

You are fine with the 585 credit score, but you need to be able to prove your last 12 months of rent with either cancelled checks or a management company. Cannot use the second job for income as you just started it. Second jobs require a two year history. You will only be able to get an FHA loan (unless you have some type of miliatry status). FHA is very paticular about the collateral, so it is important to make sure the home is not in any type of major disrepair, at least 5 year roof life, and the HVAC is fully functional.
  • January 18 2014
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You have plenty time
Today:

1. Work on the score- do "opt out", pay on time, reduce any credit cards that are over 68% of the available line, settle with collections in exchange for deletion, don't let anyone pull your credit report,

2. We offer a grant of 5% with an FHA loan - a few other lenders do as well. Look for those programs.

3. Organize your paperwork into pdf files - taxes, bank statements, paychecks...
Don't have NSF on checking accounts.
Wife's job might not be used if she has no work history. You might want to compile some evidence showing she worked before maternity leave?

4. Get landlord to agree to month to month or 4 month lease -you have been a good tenant ...

585 is workable but you will pay a higher rate--- Your (or your wife's if she is lower) middle score is what is used.

  • January 13 2014
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There are programs available for that credit score and below. If the credit score is below a 580 then the down payment requirement will be higher. A lender such as myself would be able to perform the necessary credit analysis and provide further assistance.

  • January 13 2014
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That credit score is right around the border. The lowest credit scores lenders like myself are able to do, is a score of 580. So if all your other finances are in place lenders can work with that score. It's also important to understand that you're ability to obtain a loan relies on other factors as well. These factors include income, expenses, assets, liabilities, debt, employment, down payment, as well as credit scores. The best thing for you to do is to speak with a lender such as myself to see if you can get started on financing a new home. If you have any further questions or if you would like a loan, feel free to contact me.

Good Luck!
  • January 13 2014
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Most lenders will not do a 580 credit score. There are few I've read about that will, but that is with a much larger down payment often 10% or more in most cases. If you put yourself under a time pressure, you may not get the house that will fit long term.

Take time to work on your credit and save for a down. If you want to cover your bases, ask your landlord for a buyout option of 1-2 months rent for 30-60 days notice to terminate  if you think you will buy before the end of the lease.
  • January 12 2014
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