My credit score on experian is much higher in points, higher than the other two companies. Im trying to get a homeloan with a credit score of 555 on experian and a 497 and a 493 with the other two. I also have been paying rent for 2 years but they wont consider it because the landlord has the same address as i do.. any help? I need a good mortgage company that doesnt require 25% down.
2007-02-13 09:29:41 · 4 answers · asked by caledelozier 1 in Business & Finance ➔ Renting & Real Estate
They have to get the average of all three scores.....thats the purpose of having 3 different credit company.....unbiased. If you can't bring your credit score up within 6 months to a year , I don't think you should buy a house just yet.....that's why there are so many foreclosures lately...people that weren't ready or financially able to buy a house...but lenders made it too easy ...and now they are being foreclosed on!!!Good Luck!!! though......there are other options....find a home that the owner is willing to owner finance...thats what I do when I sold a couple of homes.
2007-02-13 09:53:02 · answer #1 · answered by mikey 2 · 0⤊ 0⤋
The second poster is correct - it is the middle score, not the average score.
Even with a 555 score, you're looking at a very sub-prime loan. On a manually underwritten loan, even with the two year rental history, I cannot see any way you would be able to qualify with a score that low. Keep in mind, it's not just the score that's going to matter, but also the underlying issues that make the score so low. With a score that low, you must have had charge-offs, many serious delinquencies, or a recent bankruptcy or foreclosure. Most of those issues will need to have been put to bed for at least six months before you will qualify for a loan.
Your focus should be on correcting your credit first, then purchasing a home. It's interesting, but you'll find people with good credit would not think of purchasing a home if there were other bills that needed to be paid, but people with low credit think taking on more debt - a mortgage - will be the answer to all the credit problems. You need to rethink how you handle credit. Correcting your current problems will not only help teach you what you need to know, but give you a sense that you'll do anything to avoid ever having credit problems again. Learning to handle debt responsibly is the long-term answer to both purchasing a home and having more opportunities in life.
Good luck.
2007-02-13 11:30:15 · answer #2 · answered by CJKatl 4 · 0⤊ 0⤋
Generally speaking, there may be the odd lender who will go off one credit score (although I'm not aware of any), but if your high is in the 500s, they probably will want to see the others.
Also, the first responder didn't quite get it right....lenders do not average the three scores....rather they take the middle score.
2007-02-13 11:02:07 · answer #3 · answered by Anonymous · 0⤊ 0⤋
email my firend about your situation, he will take a few details from you and see if he can help.
he's a loan officer halleyne@bellsouth.net
2007-02-13 11:24:17 · answer #4 · answered by celia s 1 · 0⤊ 1⤋