STEADY INCOME..LARGE DOWN PAYMENT..NOT SO GREAT CREDIT?

[bella1013]

Will mortgage companies look more at the money instead of the credit?  MyFICO score is currently only 607.  I'm trying my best to raise it as much as I can before I apply for a mortgage but don't have much time.  I have steady income at $47k per year and have a 50k down payment.  I have basically no debt, no bills that I have to pay each month.  The only negative is my credit.  My old debts from about 5yrs ago are fully paid off but were in collections for a long time before I paid them.  I currently have two newer CC only for the purpose of building my credit (basically no balances on them).  I'm looking at a mortgage loan of $225k-250k.  Do I have a shot?

[tooleman694]

if you get it to 620 you could go conventional, or 640 for FHA. You would have a shot.

[playboy]

You need to find out what the minimum credit score requirement is for the lender you're interested in.  Most require a 640 or better.  You need to determine your debt to income ratio.  Even though you have no debt the DTI calculation will determine how a lender will lend you.  Which loan type are you trying to get, i.e. conventional, FHA, USDA, VA?  Which state do you live in bc you have to factor in property taxes?  50k down on a $225k home will put your monthly payment somewhere around 1,145-1,250 depending taxes and insurance.  In that case your front end DTI would be on the high-end around 29% or more.  With no debt your back-end DTI would essentially be the same as your front end.

[TanterBeans]

I just found out last week from Coldwell banker that will do FHA with a 600 midscore. Maybe worth you looking into?

[JM-AM]

It is really funny how many feel money out weighs your credit scores, or should play a part in it.

You first have to remember your file goes through automated system first , it is credit based.

Just look at it from a realistic point of view.

Send file to UW...

UW says credit is poor at this present time...

LO or Broker says, but he has no debt and has 50K to put down....

UW says then why is their credit so bad? They have no debt, but their credit is poor. Anyone can have no debt and not pay their bills, or on time....

Not really trying to come off wrong here, just trying to bring out exactly how it looks no matter if true or not....