First Time Homebuyer!! HELP!?
Me and my husband have recently been looking Into buying a home. Here Is our situation. Our credit Is not so perfect. We have a fico of 580. The reason for the low score is we have a few unpaid medical bills. Anyhow, as for credit history of 5 years we have a car loan @0 a month. and we have about 6 credit cards NO BALANCES and EVERYTHING has always been paid on time and in good standing.(other than a couple of medical bills that are 4 years old) Also, we are not rich people. We have a Income of about 33K a year. We would like to know If we would be able to qualify for a home loan at the price of ,000-0,000. We have found several homes In our area for that price and would like to buy. Our question Is can we qualify with the the fico, and income and price range?? Are there loans with downpayment assistance or ZERO down. We filled out a pre-qual for bank of america and sort of got the run around. The girl was YOUNG(inexperianced) and seemed to not know what she was talking about. PLEASE HELP!! Anyone with the knowledge and training In this area to help us would be great! We were told to go to one place that does CalHFA(downpayment assistance program) loans and you need a 680 Fico which knocks us out of doing that one! By the way we are In the Southern California area.
Ping pong….If my Fico Is to low to get any kind of loan then why did Bank of America tell us we could get a loan? They even prequalified us with credit ran and everything. They just wont help us with downpayment. Im really confused now.
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April 30th, 2011 at 6:39 am
There are very few places that offer loans today with that credit score. But there are some out there. You should be able to qualify for the FHA loan, but you will still need the 3.5% down & whatever closing costs that the sellers are not paying. Is there anyone in your family you can borrow the down payment from & then pay them back when you get the $8,000 first time home buyers credit? (That’s what we are trying to do right now.) Your income sounds good for the price range you are looking to buy in. I would stay closer to $85,000. I hope that helps you out a bit & I hope that you are able to buy a house soon!
April 30th, 2011 at 6:39 am
I’m sorry to say but your FICO score is way to low to get a good interest rate. The lower your interest rate, the more house you can afford. Lenders are being more selective now due to the housing bust when anyone was able to get a loan, resulting in high default rates. You need to work on fixing your credit and saving up some money for your down payment and closing costs. If you go to http://www.realtor.com you can use their calculator to play around with some numbers and figure out how much you feel comfortable paying for a mortgage and how much house you can afford. Hope this helped you!
April 30th, 2011 at 6:39 am
BoA’s qualification is a show-stopper. No downpayment, no loan.
You’ve got to have 3.5% to get even an FHA loan. For an $85K house, that’s $3000. You need more to close with.
The 100% loans are pretty much gone. They are blamed for the housing meltdown as people didn’t have any skin in the game and bought more than they could afford.
April 30th, 2011 at 6:39 am
I’m sorry, but the facts are – No you most likely will not qualify to buy a home. What you should be concentrating on is improving your credit score. You do that by paying all bills on time. It may only take a year to bring that score up, but you are going to need more than 700 to qualify in today’s lending world.
I know that owning your own home is the American dream, but it’s just that – it is not a right. If you can’t afford it, then you can’t own it. That simple.
You obviously have a computer, why not use it to research how you can improve your credit score.