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Last of CLeanup- can we get a mortgage if scores still low but everything paid off?

Frequent Contributor

Last of CLeanup- can we get a mortgage if scores still low but everything paid off?

How much will our scores be a factor?  Long story short:

 

  • We have been repairing our credit for 2 years now
  • Mid scores are still in the high 500's (590ish range)
  • Everything we weren't able to remove (collections and judgements) we are going to pay/settle on next week.
  • So wondering if we would have a chance at a mortgage right away (right away meaning in the next 6 months)-  or if its going to be another year+ of waiting for more good reports to bump our scores higher.

 

(p.s. we have a significant down payment saved and we have an auto loan we got last May with no late payments- so basically the only thing that would increase our scores- would be time for more accrued on-time payments)

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Regular Contributor

Re: Last of CLeanup- can we get a mortgage if scores still low but everything paid off?

The scores are a problem. As far as I know the lowest any bank will go these days is a 620. I will let others give their $.02 obviously.

Oh and your screen name scares me Smiley Wink
Message 2 of 5
Valued Contributor

Re: Last of CLeanup- can we get a mortgage if scores still low but everything paid off?

Still have a handful of lenders accepting a 580 mid score.

But you will have to find one and then know you may have lots of hoops to jump through.

So it is possible, but wont be easy.
Good Luck
May all your dreams and wishes become a reality!
Message 3 of 5
Valued Contributor

Re: Last of CLeanup- can we get a mortgage if scores still low but everything paid off?

Score seems kind of low after you have been repairing for 2 years.

 

What does your credit card situation look like.

Message 4 of 5
Valued Contributor

Re: Last of CLeanup- can we get a mortgage if scores still low but everything paid off?

Do you at least have at least one credit card? If not, get one and keep it reporting at 10% or lower. With your current scores, it would be best to look for a secured credit card from Capital One or a bank. The only unsecured card holders that would probably approve you are First Premier and CreditOne. I would avoid them as they charge outrageous fees.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
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