Posted on: 21st Jun, 2010 09:51 am
My husband and I are looking to purchase our first home. We had problems in the past with credit (i had credit cards in collections -but have been paid off for over a year) and my husband had massive amounts of student loans, with payments more than our rent. Over 6 months ago we refinanced his loans and have been current ever since. He has a steady job, under contract for 5 years, ($35,000 with regular BIG raises), and we have no debt (not even car payments) other than his school loans.
For some reason his credit is still VERY low (545-580) and mine is stuck at 610. We both now have small credit cards to improve our credit, although it hasn't gone up since we got them, and we pay off completely (no more than $75 is ever charged) at the end of each month.
We want to purchase a foreclosure for no more than $100,000 (that is for the house and improvements), and we even have a co-signer if needed with a large income and perfect credit. Is it at all possible for us to get a mortgage? If not what do we need to do change get one?
Thanks very much!
For some reason his credit is still VERY low (545-580) and mine is stuck at 610. We both now have small credit cards to improve our credit, although it hasn't gone up since we got them, and we pay off completely (no more than $75 is ever charged) at the end of each month.
We want to purchase a foreclosure for no more than $100,000 (that is for the house and improvements), and we even have a co-signer if needed with a large income and perfect credit. Is it at all possible for us to get a mortgage? If not what do we need to do change get one?
Thanks very much!
Hi Carrfam,
As per your present situation I would suggest you to consult with lenders regarding your loan. There are lenders who provide loan with a credit score of 580. However, I would suggest you to wait for sometime and try to improve your credit score to 700-720. If you have a good credit then you will get good loan options like good rate of interest, down payment scheme, etc.
Hope this will help you.
As per your present situation I would suggest you to consult with lenders regarding your loan. There are lenders who provide loan with a credit score of 580. However, I would suggest you to wait for sometime and try to improve your credit score to 700-720. If you have a good credit then you will get good loan options like good rate of interest, down payment scheme, etc.
Hope this will help you.
thank you for the response. As it is, we can only wait maybe 6 months. We moved in with my in-laws to save money for a down payment, etc. And can't stay much longer than that. I will try meeting with some lenders and see what comes of it. By the way, about how long would it take to go from 560 to 700 if you stayed current with everything and had an active credit card? Thanks again!
You do not need a 700 score to get into a new home. 620 will get it done for you. You're pretty close with the 610 but the 580 might take a bit more work. Sounds like you are on the right track with maintaining small balances on a few cards and paying them off every month.
Not much more you can do it will just take some time for the bad accounts to get older and the new good accounts to become more seasonned.
Not much more you can do it will just take some time for the bad accounts to get older and the new good accounts to become more seasonned.