Credit score 593, i need a home loan very very badly.

I'd suggest renting in a better area with a short term lease. Take care of your credit cards and strengthen your credit score a bit.

It was hard enough to get a decent sub-prime loan before the mortgage fallout, however now anything below 650 is considered sub-prime. On top of your lower credit score you've got what sounds like a pretty large chunk of debt on credit cards, which is probably killing your debt to income ratio(DTI as mortgage professionals refer to it). How much money do you have to put down? Unless you have atleast 20% your loan to value ratio(LTV) will be too high for the sub-prime market.

As I said, find a way to move into a safer area for the short-term, take care of your current debts, and then worry about getting into a good mortgage in about 6 months to a year.

I think Michael is right.

Jnj,

First settle down the other debts. That will help you accumulate a good score. Well you buy a house once in a life time so why buy in a hurry? Take a house on rent for the time being as you are capable financially. Let your score raise and then go for a good rate to buy the house you want to.

Something to consider in this "buyer's" market is that there are a lot of motivated sellers right now. If you find a nice home and the right seller they may be willing to rent to you for a year or write up a land contract with you so that rent can possibly go towards the purchase price. Its just an idea. You'd be suprised what some people will do to sell their homes right now!

You can very possibly get a sub-prime loan but don't expect the process to be easy. Do you have any unpaid debts on your report? They will want those paid at the very least before closing, and will be a requirement. I would consider doing some credit repair and try to get to atleast 650 before considering it. 650 isnt far away and a few deletions if you have any can land you up there very quickly.

Did he say his score was low due to being able to pay his bills? Thats what i read.That is really bad if you get bad score for paying your bills.Is that right?I know I have a problem with my cc.I pay on the card then next thing i know I am short and need food or something and end up being forced to use it. I wish I had a card with about 150.00 on it just to use in emergencys.

I think he meant it was low due to NOT paying his bills, since he has a business now and can start paying his bills.
Hopefully he rented somewhere better instead of getting into a dangerous loan. Some people are just better off renting - it's not a bad thing! and it's nice having someone else worry about your lawn.

I have a weak spot for my available credit too hummingbird. My problem comes with defining "emergencies" ;)

Emergency is different for each individual. Let not an emergency make you pull out your credit card. Why not save for these rainy seasons? Stack away the cents and dollars that remain in your pocket every day when you return home. Learn to save, you will never require a card for emergencies like food.

In the last few years, 9 times out of 10 the "emergency" was related to one of the family vehicles breaking down and needing work. I finally got a new car, and while it seems more expensive looking at the budget, it is actually saving us money through it's lack of surprises every 6 months. It goes against what you'd think is good sense, that getting new is better then making do with old, but in our case, the old was costing more money AND limiting what we could do. Now we have a dependable SUV that all 5 of us can go places in reliably.

Now unfortunately GAS may soon become the emergency!! ;)

Gas already IS an emergency...lol My hubby does save all his change except bills. It mostly goes to the kids for school.

With the price that gas is selling for it is not in the future but the present that we can call it an emergency. Sometimes I find it suffocating considering the cheap gas expenses only few months back.

Should you be advertising here, I am not sure that you should be????

Gas is just outrageous right now, it is hard for working families to go to work and any other extra activities have to minimized.

One good tip, especially if you have kids that have to run for activities is to buddy up with another mom or dad from the neighborhood, you take turns taking the kids to the activity, then you are only doing half the running you would normally do. Just a suggestion that works for me. :D :D :D

Well thats a good suggestion for parents. Cutting out on cost has become necessary these days. Great advice.

glad you caught it and took it off here so that no one fell for the scams.

wow, that is an awesome rate, who is the company that you got it through? Does that rate depend on your score??

Now we are double posting. It really is an awesome rate GN.but I hate all these spam posters.

I see someone deleted an earlier one on this post

I see the moderator has caught up with this so that is good.

Yeah, I figured that it would happen sooner or later.

Just a case of when. See yaou were a little busy typing l;ast night.

just a little, not much time lately.

I know how that goes. Its something I have come to enjoy and hate if I don't get the time to post.

Yep, I try to do an hour a night.

I can sometimes squeeze in more since I am not so busy.

yeah me too.

i hate when a new page starts and i have to go back and see what we were last talking about. Too tired tonight.

I know what you mean, the origianal poster was talking about his credit score and his need to buy a home, does that help?

Yes. Wonder what your credit score does have to be before a bank will lend you money for a house. It would have to be fairly decent but at least they would have something to resell if someone didn't make payments. I imagine it would be a hassle to go through for the bank if they did have to resell.

Banks are some of the most picky to deal with, you will find it alot easier to go through a finance company that specializes in mortgages.

I stand behind S&T 100%. We ahd never even thought of a consolidation loan when we approached them to combine our mortgage and two other bank loans. The lady at the bank suggested we take a look at the home equity we had and go for that type of loan which has an awesome interest rate. A lot better than the mortgage interest rate at the time. I would love to be able to pay it all off. It worries me that I will never actually own my home and if the littlesest thing happens all I worked for and my hubby too...could go to hell in a handbag. (probaly bought at fashion bug lol)

Once you give the people this reasonable interst rate with the low payments will you do as alot of the other credit people do and raise the interest rates? a lot of this has been happening now a days. Also I wonder why you are coming to this site unless it is to seek business. If so most respectable companies do not need to do this type of advertising.

True, we are all people looking for advice on credit, not looking to take out a loan these days, lol.

Minimum 620 Credit Score is required for FHA Loan. Apart from that you need to pay 3.5% down payment. 1.5% will be PMI