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Mortgage with 20% Down but 610 Credit



Due to some hardships, unfortunately credit is pretty bad. Hoping to get a House in California

We have been paying rent for over 5 years, no late on rent, and rent is around $1969 per month on a 2bed room.

We will be paying off ALL credit cards/car/etc .. everything will be paid off.

We will have around 20%-30% Down on a House ($80,000-100,000), is it possible to get a mortgage?
  • August 20 2013 - Union City
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Answers (8)

Your best bet is to search your local area for LOCAL lenders whom can guide you in the right direction in regards to how to proceed. If I was your lender I would need at least a 620 credit score in order to go conventional. What hardships have you faced if you don't mind me asking? If you've had a short sale, foreclosure, bankruptcy etc. this may require a seasoning period before pursuing a loan. 
  • August 20 2013
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I think it's worth pursuing.  I have been doing residential loans in California since 2002.  Please contact me if you'd like to see if we can help.

Thank you!
  • August 20 2013
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You should have no problem qualifying. I have a lot of experience working with credit. In my opinion, prior to submitting a loan, I would pay down all of your credit card balances to less than 40% of the credit limit. This will give you a higher score when we pull credit. Credit algorithms would rather you keep the accounts open with lower balance than paying them off completely and closing them. Considering all of your open accounts, I imagine that you have no BK in recent history and as long as you have no foreclosure you should be fine. I work in CA and can help guide you through the loan process if you would like. Please message me if you need more information! Good luck!
  • August 20 2013
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I just received an approval today with no credit scores. While we look at no credit similar to one with a 580, it is still very doable. In this situation, you don't need as much down for my program but it does require Mortgage Insurance. 
  • August 20 2013
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Proximity has nothing to do with ability.  There are plenty of incapable and incompetent lenders right around the corner from everyone.  This is what Zillow is for and a Google search can reveal--a competent, well-qualified and highly rated lender to help no matter close or how far he or she may be. 
  • August 20 2013
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Hardship was due to a unforeseen medical problem.

No Bankruptcy/foreclosure or anything in our records

Thanks all for the help.
  • August 20 2013
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Yes you will be able to get a loan. Your best bet will be to contact a reputable lender that will be able to help you repair your credit before you begin the loan process so you can get the best possible rate and loan program for your needs.
  • August 20 2013
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I would say it is possible for you to get a mortgage. There are plenty of lenders in California, like myself, that are willing to give a loan at 610. Although 620 is the usual minimum for a lot of lenders, some are willing to go as low as 580 and others as high as 680, it just depends on the lender that you are working with. I would still recommend though to raise your credit score, it will only be to your future benefit. The most effective fixing your credit score is to pay your revolving credit card balance and debt. If there is a collection on your credit there isn't much that can be done in the short run. It is best to pay back any collections as soon as possible. So as time goes on the collection will become more insignificant to your credit score and will help it become a better score. 

Also it is great that you have 20%-30% down so it seems you can afford a conventional loan. I suggest you research other options as well just to see what you like. For example you may qualify for an FHA loan which only requires 3.5% down with low closing costs and easy credit qualifications.

Hope this helps!
If you have any other questions about lending or if you need a loan, feel free to contact me through my profile page! Also, if you found this comment helpful please leave me a review on my profile page.

Good Luck!
  • August 21 2013
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