Repair Credit Score

Archive for February, 2010

Question: What is the minimum Credit Score i need in order to qualify for a reasonable mortgage (with 10 percent down)?

Answer: Companies look at more than the score the amount of time it was open and current status of the account. For example if you had a delinquent account gone to several collection agencies that looks worse if you have two or three delinquent with the originator.

Also there are great federal programs for first time home buyers-and depending on your state-they may have assistance grants that never have to be paid back. I know a few years ago FHA was the big program and also if you/significant other are Veteran Status there is VA, under some circumstances even if you are the offspring of a vet. HUD homes are another option too(usually low cost). Worst case scenario you get a higher interest rate, continue to pay down the debt and in a year or so re-fi for a lower rate-I had to do this with my 1st house. And once you show lenders that you are capable of handling the debt then they flex a lot on the interest, BUT IF THE HIGH INTEREST IS GOING TO PUT YOU IN JEOPARDY OF BEING LATE OR MISSING PAYMENTS THEN DO NOT ATTEMPT. You could wind up hurting your credit and chances of being financed again. And think 100 times about filing for bankruptcy and getting a loan soon after lenders frown on that.

Do Mortgage Modifications Hurt Credit Scores?