FIRST Time Home Buying?

I would like to know is it IMPOSSIBLE FOR A PERSON WITH 550 credit score to get a afforadable home on 30,000 a year job. Because my friend is determined to make that dream happen for him even though he have them road blocks. He said it gonna take to long for him to repair his credit so he said he going to do what he gotta do. Is this going to be possible for him? I wish him good luck

FIRST Time Home Buying?

I don%26#039;t think so, they usually stick to about a 620. And his salary is somewhat low, too. But, they take many things into consideration, has he had this job for more than 2 years, how much debt does he currently have, ie credit cards, student loans, etc, a low debt to income ratio is a life saver. I really don%26#039;t think hecan get around bringing his score up. You basically have to prove you don%26#039;t need the home loan before they will give it to you. A home loan is a huge liability for the bank!

FIRST Time Home Buying?

It is possible. However he may not be able to buy a new home. There are many websites that you can go to that list government forclosures, but you have to pay for most of them. A suggestion is to talk to a realtor that specializes in this area. They would not only be able to tell him which homes are available for free, they would be able to show them to him, also. Government forclosures tend to be a lot cheaper than other houses. Most of them do need some fixing up, but if this is his dream, then, that would be an easy way to do it, while not spending as much money as he regularly would. I%26#039;m not sure of the requirements in your area, but tell him to look into programs like HUD and Section 8. Good luck.

Edit: Also there are several things he could do to improve his credit score while in the looking process.

He needs to check his report for errors and have them fixed.

Don%26#039;t close out any cards that he is not using. If they have no balance, the utilization ratio will be lower.

Transfer some of the balances on cards that are close to being maxed out to cards with a lower or no balance.

There is something called rapid re-scoring. Tell him to find a lender that can assist him with it.

Do not open any new credit.

Pay bills in the future on time or a little early if possible. If he can, tell him to pay slightly more than the minimum amount owed.

He should be aware that the more his credit is checked, the lower his score will be. He should not let anyone check his credit unless absolutely necessary, i.e. himself to fix it, then the loan company only once he decides which house he wants.

Also, if at all possible, avoid credit counselers, this helps the score in the long-run but will bring it down for some time.

It CAN be done, but he should know not to get over his head, because if you cannot make your payments, they do take your house away. Also be aware that the sale cost of the home is not the only thing to be considered. There are closing costs, insurance, taxes, etc.

FIRST Time Home Buying?

yes it is possible. 550 score does not mean horrible it just meas a little more work. If he has more than one compensating factors, such as being able to put some money down or his total debt is less than 35% of his gross monthly income, or it could be the house is appraised more than the loan amount. His rate may be higher than a person with great credit but he probably won%26#039;t be completely shot out of the water. If he really wants to know if it is possible the easiest way is to just jump in. Most mortgage brokers don%26#039;t charge you a dime unless you close your loan.

FIRST Time Home Buying?

What about if he go and talk to someone in an office or for loans and start looking ASAP, because anything is possible in this world. Because if he wait to long, time will pass by and he will not have that energy to go for what he want.

FIRST Time Home Buying?

Well Here is some good news for your friend, he is not far off from being able to qualify for 100% financing for a home. Here are some tips you should relay to your friend.

1) Tell him to sign up with a credit monitoring service where he can personaly check his credit report.

2) Tell him DO NOT let anyone pull his credit for anything. If he can get his scores to 580 his dream will be complete.

3) Stay on his job, tenure is a major thing banks look at. If he must switch jobs stay in the same industry other wise there goes his dream.

4) In the process of repairing his credit make all of his current open lines of credit on time never later than 30 days.

5) Any collections accounts or derogatory credit, pay off the smallest bills first. Although settling will get you off the hook with the debtor it will take years for it to come off the credit report and you will not see improvement in scores that way.

For additional assistance you can have your friend contact me at 866 530 7300 ext 7305 of by email at jfreeman@justgetaloan.net