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Ok…i have found more information about my friends who are buying a house. Her credit score is 585 and she was wondering how hard it is goin to be for a home loan. She wants to borrow 120,000 to buy house and pay off some bills. How hard will it be? I have no idea that is why i am asking so i can help her. Thanks. Any information is helpful.
And if they don’t or do will she have to have a co-signer. She don’t know about her mom credit…but her mom got quit a bit of money last year and everything she has is paid off. Will that help even if she don’t know her credit score?

3 Thoughts on Credit Score…Home Loan?
  1. Reply
    MVD34
    April 3, 2013 at 1:49 am

    Not likely.

    I would say impossible, but things are getting a little better these days.

    The current rule of thumb is 650 for loan approval.

    I would be shocked if anyone with a score below 600 has received a new mortgage loan anywhere in the US at any time in 2009.

    If she is interested, she should explore. It can’t hurt, but she must be realistic. She will likely need at least $ 45,000 in income, no credit card debt, and a score of at least 620 to get pre-approved for a loan of $ 120,000.

    She will not get a loan for more than 97% of the value of the house and she will have to demonstrate that she has some savings (probably at least 3% of the loan value).

  2. Reply
    Kaitlyn
    April 3, 2013 at 2:14 am

    Best home loans are easy to get if you know where to look. Home loans with low interest rates can make a sizeable difference in your savings, both on a long term and short term basis. However in order to get the best interest rate on your new home loan, you need to follow some tips.

    http://www.worldbestloans.com/homeloans.htm

    A sure-fire way to finding some of the best home loans rate is by comparing between 3-4 different lenders prior to deciding who to opt for. While most lenders have a wide range of interest rates and schemes, those who offer flexibility in terms and conditions or can customize to your preferences can work the best for you.

  3. Reply
    Dr. Mamta
    April 3, 2013 at 2:47 am

    Many times due some delays in paying our bills or the credit card payments, we have a bad credit score. Some have has this problem to the extent that they had to file bankruptcy to save them selves. Now these people have a tough time applying for home loans and FHA loans. There are three major agencies that allot credit scores in the US. On the top of them all is FICO.

    http://loan-house.we.bs/homeloans.html

    Fair Isaac Corporation (FICO) assigns score between 300 and 850 to the person that describes his / her credit worthiness. That is the FICO score. This score would decide the rate of interest you will have to pay on any credit or loan. The higher the score, the more is your credit worthiness. Hence you shall land up paying less. And the reversal of this applies for the bad scorers.

    One thing you must understand is that there are no preset rules in this regard. Basically there are some thumb rules that guide such applications. Nothing here is hard & fast. Various loan programs require different levels of minimum acceptable credit scores. When it comes to home loans at the end it is the mortgage company’s own wish if they want to give you the loan or not.

    VA or FHA loans = 580 or more
    USDA loans = 620 or more
    Conventional loans = 720 or more

    http://credit-info.we.bs/

    On an average, the persons who are above 620 in their score do not have much difficulty. It won’t be wrong to say that it is a safe limit and one should try never to fall below that.

    With the new Stimulus Package, the Federal Government is giving out FHA loans and VA loans quite liberally. They understand that people are going through a tough time and having low credit scores is quite understandable. The new law has not set any minimal acceptable credit score. So you can actually get lucky and get a loan. For this you may contact the counselors appointed by US Federal Housing & Urban Development (HUD) Department.

    Bye…

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