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New Member
mizzlemoneymike
Posts: 2
Registered: ‎01-13-2011
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Chances of getting a home loan with poor credit score...

what are my chances of getting a home loan with my poor credit score?

 

Credit Score - 601 (Experian)

Salary - $70,600

Been at job almost 3 years.

Hard Inquiries on report - 10

Installment Loans - 9 (8 are student loans)

Total Monthly Payment - $1169

 

 

I have some bad marks on my credit report, its been over 2 1/2 years since my last negative account.  But its still showing 5 negative accounts on my report.  I made some mistakes in college by getting credit cards that I did not need and missing payments and that has hurt my credit.  I might be getting moved back to Indiana for my job which would give me around 5k - 10k for a down payment.  I figured I would have to go the FHA way for a loan, but I'm wondering if I would even be able to get a loan.  My wife has good credit, not sure what her score is but it was over 700, but she does not make a lot of money.  I figure I could make a mortgage payment in the range of $1000 a month. 

 

Do you think I would get a loan for a home?

 

Thanks

Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010
0

Re: Chances of getting a home loan with poor credit score...

 


mizzlemoneymike wrote:

what are my chances of getting a home loan with my poor credit score?

 

Credit Score - 601 (Experian)

Salary - $70,600

Been at job almost 3 years.

Hard Inquiries on report - 10

Installment Loans - 9 (8 are student loans)

Total Monthly Payment - $1169

 

 

I have some bad marks on my credit report, its been over 2 1/2 years since my last negative account.  But its still showing 5 negative accounts on my report.  I made some mistakes in college by getting credit cards that I did not need and missing payments and that has hurt my credit.  I might be getting moved back to Indiana for my job which would give me around 5k - 10k for a down payment.  I figured I would have to go the FHA way for a loan, but I'm wondering if I would even be able to get a loan.  My wife has good credit, not sure what her score is but it was over 700, but she does not make a lot of money.  I figure I could make a mortgage payment in the range of $1000 a month. 

 

Do you think I would get a loan for a home?

 

Thanks


 

More then likely you will not qualify with your scores. Even if you and your wife applied more then likely you still would not qualify.

 

 

Good Luck
May all your dreams and wishes become a reality!
Established Member
cequia
Posts: 23
Registered: ‎07-08-2009
0

Re: Chances of getting a home loan with poor credit score...

Did you join PESCU or get that experian score from a lender? If not pull your scores from myfico to figure out where you really stand and then go from there.


Starting Score: 497
Current Score: 649 EQ; 679 TU
Goal Score: 660


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Valued Contributor
chasmith
Posts: 1,062
Registered: ‎05-26-2010
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Re: Chances of getting a home loan with poor credit score...

Mortgage lenders are going to look at the lower mid-score of you and your wife (yours) if you apply together.  You really need to get FICO scores for a true assessment of where you stand, you can get Equifax and TransUnion at MyFICO, can't get Experian except through a lender.

 

To go FHA you need at least a 620 mid score (the middle of the three from the three CRAs).  That could be in reach if you pay down credit cards, stay away from inquiries, and try to get the lenders who posted baddies to delete the negatives on a GW basis.

BK7 Filed 8/11/2009 Discharged 11/23/2009. Purchased new home 4/11/2012
Starting Score:11/16/2009 EQ 566 11/16/2009 TU 538
Interim Score: 12/27/2012 EQ 683 09/17/2012 EX (lender) 670 1/01/2013 TU 701
Current Score: 11/06/2013 EQ 708 11/06/2013 EX 702 11/16/2013 702 11/06/2013 TU 729
Goal Score: EQ 740 EX 740 TU 740
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Super Contributor
ShanetheMortgageMan
Posts: 8,252
Registered: ‎09-28-2007
0

Re: Chances of getting a home loan with poor credit score...

If your last negative is from 2.5 years ago, and your score is still around a 600, it may be a sign that since the rough patch in your life you may not have re-established many new forms of credit.  When did you get the student loans?  When did you get the other 1 installment loan?  Have you opened up any other credit since the rough patch?

 

Like has been pointed out, a 601 FICO score probably isn't going to qualify, there are a couple lenders that will go down to a 600 score in Indiana but just barely being there may not be enough.  Your debt to income ratio looks fine, and with your wife's strong credit on the application that helps, but not enough for them to overlook your credit.

 

When do you think you would be looking to buy?

New Member
mizzlemoneymike
Posts: 2
Registered: ‎01-13-2011
0

Re: Chances of getting a home loan with poor credit score...

I was going to start looking to buy in a 6 month to a year time frame.  Is there any business out there to go to and ask for help as in getting some of the old accounts taken off my account?  Also my student loans were from a 2003 - 2008.  I have had 3 car loans from 2008 - present, I had 2 of the car loans paid off and my latest one was in Sept. 2010 for $49k, in both mine and my wifes name.  I have one other credit card that was opened in Dec. 2009 for dental.  I really want to get some of the old bad credit taken off my report but I don't know how or what to do so I was looking for a business or something to help with that.  Is there anything out there to help???

 

Thanks

Moderator Emeritus
MarineVietVet
Posts: 14,163
Registered: ‎07-14-2009
0

Re: Chances of getting a home loan with poor credit score...


mizzlemoneymike wrote:

I was going to start looking to buy in a 6 month to a year time frame.  Is there any business out there to go to and ask for help as in getting some of the old accounts taken off my account?  Also my student loans were from a 2003 - 2008.  I have had 3 car loans from 2008 - present, I had 2 of the car loans paid off and my latest one was in Sept. 2010 for $49k, in both mine and my wifes name.  I have one other credit card that was opened in Dec. 2009 for dental.  I really want to get some of the old bad credit taken off my report but I don't know how or what to do so I was looking for a business or something to help with that.  Is there anything out there to help???

 

Thanks


Hello and welcome.

 

An excellent place to ask those kind of questions is in Rebuilding Your Credit. If you'll start a new thread over there and give specifics about your situation you'll gets lots of advice and suggestions.

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Valued Contributor
mauve
Posts: 2,487
Registered: ‎02-18-2010
0

Re: Chances of getting a home loan with poor credit score...

Also, that score is likely a FAKO.  Where did you get it?


Starting Score: EQ 583 TU04 619 EX 592 (lender pull) 2010
Previous High Score: EQ 700 TU04 712 EX 726
Current Score: EQ 740 TU(Discover) 750 EX(AMEX) 747
Goal Score: 740+ all around


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Super Contributor
ShanetheMortgageMan
Posts: 8,252
Registered: ‎09-28-2007
0

Re: Chances of getting a home loan with poor credit score...

You may want to get another credit card or two to help out with the scores, as it sounds like you only have 1 now.  You may see your score lower a little bit for the first couple months but by the time month 6 rolls around your scores should be a little bit higher than they are now.


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