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I have a 630 credit score of which I'm currently working on, and am researching the feasablity of a mortgage. Is it worth trying to get a loan? The loan would be for no more than 30k with an easy 20% down if needed.
What advice can you provide and are there any financial institutes to consider?
what do you mean? instead of a mortgage? 30k is a lot of money to borrow just to improve your credit.
Ok! Hi Cinnamngrl!
The investment isn't to improve my credit. My husband and I are in the market for an investment property and I have a 630 credit score, my husbands is lower.
My questions: Is it worth trying to get a mortgage at this point with such a low credit score? I have very little credit history, No credit cards, no loans.
Should we wait?
We both have our own businesses and we have the money to put at least 20% down. We're in no hurry and have been following the market for awhile. Would like to buy at the end of the year.
We've considered FHA
if you can wait till it improves, ok. getting turned down will hurt your score.
what was the 30k about? Is that the price of the property?
Yes! It was foreclosure condo in Orlando. Thanks, I appreciate your response and will hold off. Plenty of time to still take advantage of the deteriorated market.
Be careful about buying something that is far away from you. You will be responsible for services like water and taxes. You would need to keep the building safe if you can't rent it out. Of course 30k sounds pretty good for almost any kind of property. but be careful of scams
score to qualify for a mortgae
Hi Tish,
With a score of 630, you may qualify for a mortgage, but that may come with high interest rates. Thus, its better to wait for sometime until your score increases. With higher score, the interest rates charged will be much lower. You need to make on-time payments to increase score.
Even if you had been delinquent upon any account, you need to start paying on them. Along with the payment agreements request the creditor to agree to a "Pay for delete" (PFD) agreement. With a PFD the negatives on your account gets removed.
Thanks,
Aaron