Loan in Kentucky

[Anonymous]

Hi,

I found a foreclosure that I am wanting to buy.  I currently live in my parents house in Colorado, I don't pay any rent.   The foreclosure's price is 22,000$.  I make 52,000$ per year.  My credit has some issues that I am fixing and my current Fico is TU 585 EX 592 EQ579.    Is there any hope of finding a mortgage in this situation? 

  My company has a call center there and they have already told me verbally I can transfer.

[Booner72]

Hi there - I believe you have to have a minimum of a 620 middle score to qualify.  Some people say 600 but I've never read of a successful mortgage that went thru here at MYFICO.  Though I bet there are people out there that do get the mortgages w/ those scores and they don't come to this site because they don't have to worry about fixing their scores.

Anyway, the fastest way to get your score up is to reduce your revolving debt.  As you can see from my signatures, I've gotten some major pointage in just seven months.  I got rid of some bad stuff and paid down debt.  Give us more info on what's on your credit and we can advise on your best move to get the scores you need.

I also know you need to have 12 months of "clean credit" to qualify.  Do you have that?

What a great deal on the house!

[ShanetheMortgageMan]

FHA financing, which is a 3.5% down payment, will go down to a 500 score (anything less than 580 requires a 10% down payment), but most lenders are looking for 600-640 credit scores.

USDA financing actually doesn't have any minimum score but your income level may require you use a mortgage lender, and they'll be looking for 620-640 scores.  It's 100% financing but the property has to be in certain areas (rural).  http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

But that sales price/loan amount will be too small for most lenders to want to finance, the amount of fees that need to be charged on a mortgage transaction would be illegal.  If you have 35-40% down you could potentially buy it with a hard money loan as a non-owner occupied property and rent it out.

[Anonymous]

Hi,   Thank you for your help with this!   Well I applied for a loan online and with BOA they have just lowered their minimum to 580.  She pulled my credit today and it was 566.

Here is what I have on my report.

3 small credit cards:

HSBC-  $338.00 balance/ credit line $400 (closed account)

Credit One-141$ balance/ $150 line (closed account)

First Premier- $315.00 balance/  $300$ line

Car loan-  8500$  (brand new account; just purchased a vehicle to pull my horses)

Student loans:  46,000 (8 different accounts)  Dept of Ed.  all current all deferred

Inquiries- 8 inquiries

3 fall off in august

2 in September

2 in march 2012

Old collection accounts:

2 are paid collections

1 is not with a balance of $629

Bankrupcy from 2006

** no late payments in 2 years+

My goal is to move to Kentucky because the price of housing is so low there.  I have a horse and it's horse heaven.  Right now I live in Colorado and I drive in one hour to work each way.  The cost of gas is really killing me and I just ruin vehicles, because I live so far away from work.  The winters are very hard on me too and it's expensive to heat for 6 months of the year.  I live in a house my parents own and they do not charge me any rent; but they have let me live here to get through school until I decide where I want to move, I decided Kentucky is the place for me.  The town I live in is Rural, less than 100 people live here.

My income is 4500.00 per month (salary, bonus, overtime) My company has a center in Louisville and they will let me transfer my job there; ultimately though it is not my career path so I may move and work there until I find a job in my field of study.

I wanted to buy a very cheap home because that way I can pay off my student loans within a couple of years and get that off my back.   The home I like is 22,000.00.  It is a foreclosure and the mortgage would be around $127.00 / monthly.  It is in not a great area, but around the corner from a police station and I have talked with all the neighbors, it's a pocket of good people/homes.

Anyways, I am looking for 20 points and the loan officer said we have a deal.  Bank of America gets some sort of incentive for selling in this area because it's considered a low income area.

20 points.

Thanks for helping and making any suggestions.  What would you pay off first?

[incognitony]

Pay off the credit cards or at least the open one and it may bump it up that much.