mortgages and credit scores

[Anonymous]

So I keep reading online how it's getting tougher to get a mortgage now with all of the issues with the subprime.  My credit score is 591 right now but I will be paying all of my revolving credit off over the next 4 months.  That should bring my score up assuming that all of my payments are on time (which they will be) but I'm trying to figure out at what point I can seriously start looking at houses.  My fiance' and I are hoping to be into a place no later than next summer but would like to start looking in the spring.  Any insight?

Thank you!!

[John060675]

There is a lot more than just credit score that they will look at.  However, to answer your question, my opinion is as follows:

Below 600:  Wait

601 - 650:  Bad interest rates, but can get some offers

651 - 690:  Still not good rates, but can at least get several offers

691 - 720:  Fair rates, and lots of options

720 - 760:  Good rates and many options

761 - Over:  My God, what are you waiting on?  buy!

[Anonymous]

This will be our first house so I know that there are FHA stuff out there, any idea what their credit score requirements might be?

[ChrisW]

If I remeber right FHA is at least 600, but you can't have any unpaid collections or anything.  My scores are in the low 600's and I talked to my mortgage lady today since I am also buying my first home and I will get 6.85 APR

[Anonymous]

Be sure to check with your state and county governments.  They might have special "Mortgage Revenue Bond" programs that offer below market interest rates for 1st time home buyers.  If you have a State Housing Finance Agency that would be a place to start.  Not all mortgage companies/banks have access to these special programs.  They are of course income sensitive but generally the maximum income limits are very generous.  You can also check into "Portfolio" mortgage programs that some lenders have.  Those are usually your larger federally or state chartered banks.  They have the Community Reinvestment Act requirements to meet.  That's probably more than you ever wanted to know about affordable housing!!

[Anonymous]

thank you for the insight... I really appreciate all the info I can get.  

[Anonymous]

FHA does not have score requirements

Google FHA Qualifications.

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@ChrisW wrote:

If I remeber right FHA is at least 600, but you can't have any unpaid collections or anything. My scores are in the low 600's and I talked to my mortgage lady today since I am also buying my first home and I will get 6.85 APR

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