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Profile picture for tweetygul7

home loan with high income and low credit score

I make $132k per year (before taxes). My only debt is a car loan ($350 per month) and student loans ($700/month).  My credit scores are 582 (equifax), 610 (transunion), and 644 (experian).  I want to buy a home but cannot get approved.  I have many medical bills that went to collection a few years ago before I had this income, but have paid them all off.  Is my only option to get my middle score above 620?  I don't see how this would help, considering different companies use different scores.
  • September 21 2009 - Jackson
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Answers (14)

Profile picture for SunTrust
As you've noticed, not everyone requires a 620. Our cutoff is 600 and it looks like some on this site will go down to a 580.
  • September 21 2009
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Profile picture for Voyage Home Loans
You should be able to get approved with an FHA loan as long as your credit is above 580.
  • September 21 2009
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Hi Tweety. Call Jim at the link below. 3.5% FHA Purchase loans down to 580 so long as you can prove a 12 month paid on time rental history.
Good luck!

http://www.zillow.com/profile/jimmyjablonski/
  • September 21 2009
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Profile picture for Erez Cohen

Since your income is quite substantial, I would wait until your credit score is a 620 minimum- Do not bother getting a loan with a score below that as rates and fees are through the roof.   Call any reputable lender from Zillow and have them run your credit.  They can then go to their credit bureaus and run what if scenarios to see how to get your score to above a 620.  The what is scenario's cost $10 per bureau so you are only looking at around $30 -  Well worth it in my opinion as that will save you thousands over the long haul.

  • October 22 2009
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Profile picture for BungalowMo
You can get those paid collections removed legally, and thus, raise your scores.  Google "whychat HIPAA" and you will see that users info on the entire process.  I've sent that info to many folks and it's been proven to work.

Remember, the cleaner your report, the higher your FICO's & the lower the Int rate. 

My constant advice...clean up then buy.  I have been reading up on this process for years & am a total "FICOholic"!!  Go to the myFICO forum & those folks are the BEST!
  • December 06 2009
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Profile picture for tonygim
The simple solution is to spend 8+ hours mastering all of the information available on FICO scores.  Then do what is necessary and get a "rapid rescore".  It may be easier than you think but I assure you it cannot be done without spending a tremendous amount of time.  It is not that hard but rather time consuming.  The credit Technologies website will give you a good start.  Just remember, you need to become an expert on the methodology of what moves FICO scores.  It simply takes time and concentration.
  • December 06 2009
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Profile picture for BungalowMo
Here's the breakdown of FICO scoring...

-35% affects Payment History - Time or GW letters are the answer here

-30% affects Utilization - keep your total revolving limit under 9%

-15% affects Established History - The older your history the better

-10% affects Inquiries - apping for new credit hurts.  Keep inq's at the
                                  minimum. FICO only scores the last 12 mos

-10% affects Mix of Credit - Store charge cards, Major credit cards,
                                        auto loans, etc. 

The formula isn't that hard...or hard to find.  It's on several websites.
  • December 06 2009
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Not all banks need a 620, you just need to check around a little. 
  • December 06 2009
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with income so high and debt so low you should have no problem putting 25-35% down and easily get approved for a mortgage.
  • January 31 2010
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Profile picture for toddm11
I am in a similar situation.  As of this year I begin earning $535k annually with a credit score below 650 due to a short sale last year prior to my income spike. (was at 120k then promoted to VP)


We have Zero credit card debit, one car payment (under 300) and a car lease payment that my employer compensates me for.



We have no other debit, 44k in money market, 30k in checking.



Any thoughts?
  • March 14 2010
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Profile picture for GayPowell9
my crdit scour is low be I won my own busines  painting fence and barn for horse farms in Lexington, ky  I want to buy a home where can I go for a loan
  • February 12 2013
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Profile picture for user78605154
You can get a FHA Loan.Speak to a mortgage professional. Keep in mind, having a low credit score that will make it more difficult and more costly to borrow money.
  • June 05 2013
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Profile picture for markeb0
It may be best to dispute the medical collections since it is against HIPPA regulations for Dr's and hospitals to pass on your private information to 3rd party collection agencies.  I would bet that even though you paid the collections off, they are still on your credit report as a negative item marked "paid collection".  Also, if you have any late payments, they can be disputed or you can call the creditor and ask for a good gesture removal, they sometimes will remove late payments.  Also, make sure you have at least one revolving credit line, even if it has a "0" balance.  It will report favorably even though the balance is "0".  A secured credit card can work for those who can't get a regular revolving credit card.  Hope that this helps!
  • March 13 2014
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  • May 08 2014
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