1st time buyer

[Daare2dreeam]

Is it true that people with bad credit can purchases houses?

There are many first time buyer programs around where I live. I've work for some time but most recently I've just gone back to working full-time (since finishing college) in 8/2015.

I'm a single parent and make around $48,000 and over the next two years will get automatic promotions so my income is likely go up some. I just want a small starter place or even a town house for me and my child.

How likely am I to get a loan and help with the down payment with scores in the high 500s and low 600s?

[Anonymous]

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@Daare2dreeam wrote:
Is it true that people with bad credit can purchases houses?

There are many first time buyer programs around where I live. I've work for some time but most recently I've just gone back to working full-time (since finishing college) in 8/2015.

I'm a single parent and make around $48,000 and over the next two years will get automatic promotions so my income is likely go up some. I just want a small starter place or even a town house for me and my child.

How likely am I to get a loan and help with the down payment with scores in the high 500s and low 600s? Depends on the price of the home you are looking for and what your DTI is. Most lenders would like to see at least 580 for FHA but I've read people post that they needed a 620 score to get the 3.5% down. A score of 580 would more than likely require a larger down payment than 3.5%. Are the scores you've posted your mortgage scores?

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[Daare2dreeam]

Thank you your for response.

I'm new to the lingo. I'm still doing research/learning. Where can I get my mortgage scores?

Last I checked I was above 580 on my credit scores. I have heard that 620 is the minimum as well. I don't have anything saved for a down payment. I plan to start contributing to deferred comp through my job but I'd like to get something sooner if there are programs that would help with the down payment.

Also do you have advice on opinion about trying for a house and deciding whether to get a new auto loan before or after you have purchased a home? Ive heard different things.

[Bankrupt2019]

You're going to need a down payment for a car or a mortgage with those scores. Generally you do not want to be applying for any credit around the time you are applying and closing on a mortgage.

Are the scores you have listed your FICO 8 scores or mortgage scores? How many credit cards do you have? Balances vs limits? what negative items are in your credit report. Help us to help you.

[Anonymous]

What state are you purchasing in? Some states have downpayment assistance programs. For example, in TN there is a program where you get a second loan for the downpayment and the payments on that loan are deferred and the debt is forgiven after 15 years if you remain in the home. The only downside to this program is the primary loan that goes along with the downpayment loan is at a higher interest rate.