can you buy a home, with a credit score of 519?

Question

score will be going up in a year or so. Have 10 grand to put down.

Answer 1

Lender will give you money for sure. Probably charge you a higher interests rate and extra insurance on the loan for not having the down payment or good credit.

Would you consider delaying your plan? As housing market continues to slump, it might save you 10% simply by waiting for a few months. Another way to look at it, you can increase profit by 10% when you are ready to sell it.

http://money.cnn.com/2006/09/08/real_estate/caught_in_the_bubble/index.htm?postversion=2006090814
http://money.cnn.com/2006/09/05/real_estate/Ofheo_home_prices/index.htm?postversion=2006090514

As housing market continues to slump, if you don't plan to delay your plan, please interview several and pick a good realtor or agent.

Bad ones will talk you into buying the largest property at your credit limit. Good ones will find you a good deal (Sellers are offering discount and incentives now).

Try to stay away from Adjustable Mortgage, because 30 year fix mortgage rate is very low right now. There is no reason to use Adjustable loans except fatter commission for loan agents.

Interests only loans are not good iether. Mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn't add to the equity to your house. It simply disappear as your pay it. If you want to use interests only loans, might as well rent, especially during market downturn, because housing price won't appreciate.

Finally, for tax benefits, talk to your CPA or tax accountant. Do not consult finance with realtors or agents. They get commissions when you sign the check!

Good luck!

Good article when you want to put in bid, negotiation.
http://biz.yahoo.com/brn/060909/19463.html

Answer 2

Yes, it is possible. You will, however need some help. This can come in many forms.

1. Substantial down payment at least 10% (realistic only if the home is $100,000)
2. Have the seller carry a second mortgage (more realistic)
3. This is the sneaky way. Find a mortgage broker that will get an appraiser to bump up the value of the house, thereby allowing the seller to increase the selling price of the home. This way, you need to borrow proportionally less than the value of the home. This gives you equity much faster, and will drop your interest rate.

Meanwhile, if you can, get a detailed copy of your credit report. Write a letter to each and every one of your creditors, denying any charges they say you owe, whether it's true or not. They have 60 days to respond in writing, or they, by law, must remove any derogitory marks from your credit report, legitimate or not. This is what credit repair companies do for a fee, but you can do it yourself, if you take the time. This will increase your credit score quickly.

Good Luck

Answer 3

Absolutely! First of all, your credit scores are going to vary among the three credit bureaus. When pulling one's credit, a tri-merge is used to show all three scores. 519 may be your low, mid, or high score. Lenders typically look at your middle score and qualify you based on that.

The magic number in the mortgage industry is 500 (although some lenders do go lower). Typically, however, with scores lower than 620, you are restricted as to how much you can borrow against the value of the property. You may be required to put a significant amount down on the property.

What most people don't realize is that your credit is only one aspect a lender will look at to determine if you are lendable. They also look at your capacity to repay the loan, which includes your income and assets, as well as collateral...the property itself. Basically, it's up to the discretion of an underwriter as to what they will approve or deny.

My advice is to use a mortgage broker. Going directly through a bank is very difficult being that they have a stricter set of guidelines. Going through a retail lender such as Ameriquest, Wells Fargo, or Countrywide...you are going to pay the retail interest rate. When you use a mortgage broker, you have access to the wholesale rates. Just be careful they do not over charge you with the origination fee (their fee for doing the loan).

Also, to help increase your credit score more quickly, try using a service that will dispute negative accounts reporting on your credit. For just a couple hundred dollars, they will do all the work for you! You would be surprised how quickly your credit score will jump!

For credit repair, try emailing [e-mail] and for a free prequalification you can email me at [e-mail]

I wish you the best of luck and hope you become a homeowner sooner rather than later! :)

Answer 4

It will be difficult, and the interest rate wont be good. with that score they will probably require a hefty down payment too. most lenders are looking for at least a 625 if you want a decent interest rate. you might be able to get into a HUD or a foreclosure. I would try getting some of the negatives removed from your credit report first. If you dispute items or demand proof that the bills listed on your credit report are actually yours..the creditors only have 30 days to respond or the item must be removed. Many times on older listings the creditor wont bother to respond. If you have debts that are more than four years old on your report, and you have not made any payments and the creditor hasnt sued you then those debts are past the statute of limitations and are no longer collectable. You can easily get those removed too. If you have debts that are placed with collection agencies you can usually get them to settle for half..or sometimes even less!

Answer 5

519 is not considered a good score however lenders will look into a lot of factors when considering you for a loan - most importantly past credit history on mortgages. If you previously had a mortgage and paid on time, that may increase your chances. In any case, with that score, if you are approved, it will not be for good credit offers.

My lender suggested we contact the companys that showed delinquent/past due payments and see if they will remove your account entirely. It doesn't hurt to ask - I am told some will and that can only help you - in some cases drastically. This is what companies catering to improving your credit score do.
Good luck!

Answer 6

Yes, you should be able to find a lender with a low credit rating and a large down payment (20-30%)unless you have a bankruptcy or signed off debt (credit cards that you never paid and the card signed off the debt). If so, you may find it very difficult. The other ideas of getting small loans and paying them off to raise your score aren't bad ideas, unfortunately they won't raise it all that much and the companies aren't as quick in their reporting of paid off debt as they are in default debt. Meaning it could take a year or more to really show any significant rise in your score. try www.eloan.com you will get up to 4 responses and make sure that you don't just jump on the first one, check out all the offers and pick what is best for you. Good luck!

Answer 7

With 10 grand , yes, you can be a homeowner, for sure! Now you won't be able to walk into any home, but if you research homes that are for sale and Owner Will Carry, that means the Seller is willing to take your 10K and he will be the Lender. Make sure your first home's monthly payment is within your range other wise the Seller can take it back Quickly, but if you can afford it go with it! Also you want to consider what your new house would rent for per. month, should you decide to move. A safe rule of thumb is 10%. On the open market would that $100,000 property Lease for $1000. per month? If you say , no problem, jump on it, it's a good deal, and if you hang onto it for a bit you will probably make $50,000 or so. Speculation aside, it's pretty hard to loose money on Residential Real estate! If I had to start my career over I would purchase 3 Residential Properties, lease them out with a positive or near pos. cash flow , then in 20 yrs. sell them and retire on the million or two I would make!

Answer 8

Doubtful. The highest credit score goes to 800 (although in the banking business, I have seen as high as 810). Below 650 is considered low. I have been told that below 600 and a person may very well be turned down for home loans.

Answer 9

Yes you can. You will pay a higher interest rate than someone who has better scores though. If you are a first time buyer, you will be in a better position because of the many programs available to first time home buyers. There are also programs you can go into to clean up your credit scores even faster than in a year.
I can recommend a mortgage broker: Mortgage Now [phone]. I've had a lot of success with them in terms of refinancing with low credit scores. You can try Lending Tree as well. If you go directly to banks they will very likely turn you down. It all depends on their criteria.
Remember too the less you put down, the higher the payments and you'll have to pay mortgage insurance with less than 20% down. Don't let that deter you though. If you use one of the numerous calculators out there (Yahoo has one too), you'll see that it is almost always better to own than to rent.
Good luck.

Answer 10

Depends on the price of the home and your relationship with the credit lender. If possible I would wait for a year to improve the credit score, unless you can come up with a VERY large downpayment you will not receive a good rate. Then again, you could always refinance later, but you will have to deal with the closing costs and whatnot.. I would just wait.