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Answers (6)
- Alyce Martin, "Alycesellshomes"
- Contributions:32
If your credit score is below 600 then you need to examine how you deal with debt. Read Sunnyview's comment below. That is good advice. You would be better off putting that 20% money down into paying off your creditors, and building up your score. Sorry this isn't the info you probably wanted to hear, but not everyone is cut out to be a home buyer. You have to earn your way in this market - as it should be.
- pixlink
- Contributions:11
The best option would be to fix the problem that you're having in the first place. Realize that your score didn't get that way over night and it won't be reinstituted overnight. Patience is deffinitely a virtue. Get the facts from someone who can advise you on the advantages or disadvantages of buying with a low score and go from there. Just make sure you talk with someone who has experience in credit counseling before you start giving money to any debt collectors or sending dispute letters to any credit agencies concerning accounts on your report. What you don't know can definitely hurt you. Nowadays it takes a 620 Fico to be considered for a loan unless you have plenty reserves , low DTI ratio and strong compensating factors. Hope this helps.
- sunnyview
- Contributions:25115
You can try to build a higher score. That would save you money on the cost of the loan and get you a better rate. There are things you can do to improve your score for free using basic credit techniques like reducing debt, correcting errors on your report, reducing your debt to credit ratio, paying all bills on time, resolving old account issues to bring them current etc. Many are common sense, but even a small bump in your score would be helpful so it is worth looking into doing what you can for free.
- klarek the realist
- Contributions:7044
Rent
- xx123
- Contributions:17
hmmm.. under 600... probably means a bunch of judgment collectors chasing you. So where is the "seasoned money" for the down payment going to come from ?
- Craig Yeager, "yeagersells"
- Contributions:51
What is best option for low credit score under 600?
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