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Buyers with low scores- don't give up

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katrinalbsn
Contributor

Buyers with low scores- don't give up

My score was 581 when I applied, my husband is much higher but they use the lowest middle score. Long story short we close on our home with 4.75% interest FHA Friday. We I'll refinance later when my score is higher but for now we are super excited! Don't give up if you have lower scores. Home ownership IS POSSIBLE!
Message 1 of 17
16 REPLIES 16
cartwrna
Valued Contributor

Re: Buyers with low scores- don't give up

Keep in mind that depending on when you decide to refinance, the rates may be higher than what you currently have. They have projected that they will start climbing shortly. Congrats on your purchase.
Don’t take your credit for granted, use it with care! These days, catch me in the bankruptcy forum!?
Message 2 of 17
katrinalbsn
Contributor

Re: Buyers with low scores- don't give up

In that case we would not refinance!!! Thank you Smiley Happy
Message 3 of 17
Sassy_Taurus
Frequent Contributor

Re: Buyers with low scores- don't give up

Congratulations!
Message 4 of 17
Anonymous
Not applicable

Re: Buyers with low scores- don't give up

congrats on your new home!!Smiley Wink

Message 5 of 17
divadrekadreke
Established Member

Re: Buyers with low scores- don't give up

Congrats!!!!

Message 6 of 17
katrinalbsn
Contributor

Re: Buyers with low scores- don't give up

Thank you!!
Message 7 of 17
Anonymous
Not applicable

Re: Buyers with low scores- don't give up

You give me hope. How much downpayment did you have? I just checked mine and they are 586, 536, and 526. I think the lower two have a couple of inaccuracies on them and hopefully the scores will go up when my disputes are complete. And I will be towing the line for 4-5 months before prequalifying, cleaning off some small medical debts and trying for good will on a few other blots. *gulp* 

 

Congrats and thank you for sharing!

Message 8 of 17
katrinalbsn
Contributor

Re: Buyers with low scores- don't give up

With FHA you only have to put down 3.5% and you don't have to pay off your medical collections. They will not count toward you debt to income either. You will have to explain why you're disputing items on your credit so don't dispute them unless you're 100% they will be removed. If your total collections excluding medical collections are over 2k I believe they will take 5% of that and count it toward your DTI. Also, your down payment can be gifted and/or taken from your 401k..
Message 9 of 17
Anonymous
Not applicable

Re: Buyers with low scores- don't give up

CONGRATS!!!

Message 10 of 17
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