2007-09-16 06:27:01 · 7 answers · asked by littlec 1 in Business & Finance ➔ Personal Finance
you can do a FHA mortgage with scores as low as 400.
FHA has a no score requirement but you will need a 2.25% down payment...
2007-09-16 07:01:59 · answer #1 · answered by Anonymous · 1⤊ 0⤋
A 558 credit score does not show credit responsability, work on improving your rating and saving some money for either a down payment or closing cost. Once you are in the 620's there are some good loans for 1st time home buyers. Below are a few tips for those looking to buy.
There are many factors when purchasing a home.
1. Affordability, the first question I ask when talking to a client is " What is your budget?"
2. Income, You should not pay more than 55% of your gross monthly income toward debts, that includes mortgage, car, credit cards, student loans, anything you owe that shows on your credit report. Simple calculation, $4,000. gross monthly income x 55%= 2,200.
3. A good guide for a mortgage payment is 1% of your loan will be the amount of your monthly mortgage payment including, taxes, insurance or Home Owners Association dues. Example: $100,000. loan, 1% is 1,000. per month. Dont let anyone fool you by telling you that your payment can be cheaper by not including your taxes and insurance on your mortgage because you will be responsible to pay a the whole amount when it comes due.
I have helped lots of people into homes and plan on helping much more. If you have any quesitons about a mortgage I would be more than happy to answer them. You can email me at: DPVPR@Yahoo.com
2007-09-16 07:27:35 · answer #2 · answered by Dan P 2 · 0⤊ 0⤋
I am working on buying a house but they told me the credit reports needs to be clean and over 620 to get a house with how the market is right now so my advice to you is to get a copy of your credit report from the 3 different company's and see what is on there that is your and not your and deal with that and pay the bills of and save money before you move in to a house and do not buy the expense house out there by a cheap house for now that you can live in and move up in a few years.
2007-09-16 06:37:24 · answer #3 · answered by kitty450 1 · 0⤊ 0⤋
Find a way to improve your credit score over the next year or so, and then look for a house. Even then you are likely to need a substantial down payment.
With a score that low, you aren't going to find a mortgage without a cosigner. If you get offers of a mortgage from somebody online, it's almost certainly a scam.
2007-09-16 06:53:34 · answer #4 · answered by Judy 7 · 0⤊ 1⤋
Figure out the mortgage payment for the house you want.
Pay the difference between that and your current rent into a savings account until you have "repaired your credit" by paying off your other debts, then increase the payments into the savings account until you have 20-25% of the house price as a deposit. That way you may be able to avoid PMI and forced escrow.
2007-09-16 06:40:56 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Mortgage rates differ a lot and are based on your credit rating and the value of the home. Before approving your loan, your lender will scrutinize your credit history. There are two types of mortgages according to the type of rate: fixed or adjustable. Consult a mortgage broker or contact the lender directly asking for quotes. This lets you decide between both the varieties of mortgages.
http://lower-your-debts.com/category/Mortgage-Rates.html
2007-09-17 02:19:57 · answer #6 · answered by Anonymous · 0⤊ 0⤋
if you can't put 20% down, don't buy, you cant afford it.
be debt free and have cash saved for emergencies and a down payment, or you are not ready financially to buy.
2007-09-16 06:31:42 · answer #7 · answered by Anonymous · 0⤊ 1⤋
Unless you have a good job and a co-signer with a good score, your chances of buying are limited.
2007-09-16 06:39:22 · answer #8 · answered by Suzy 5 · 0⤊ 1⤋