QNA asked:
Where is the best place to look? I asked my credit union, but they don’t do “subprime mortgages”.
Where is the best place to look? I asked my credit union, but they don’t do “subprime mortgages”.
My credit score was on a steady climb until it recently plateaued at 607. I don’t have any recent delinquencies (last late payment reported was in 2005). My income has significantly increased to a decent level. I’m afraid that maybe the credit score is something that only time can fix,,,?
Andre
Tags: Decent Level, Mortgages, Steady Climb
probably not right now with the market the way it is you need like a 720. a year or so ago it would have been easy but now you have to have really good credit.
Wells Fargo isn’t too bad. They have a very good program for first time home buyers. Their interest rate was 5.75 just 2 weeks ago for that program.
Sun Trust Mortgage is also one that is ok, but they have a higher interest rate.
It does take time for your credit rating to go up, Closing accounts can lower your score, also having a lot of people looking at it can bring it down..You might want to talk to a mortgage broker, they can help you find a good deal. but they can also be spendy.
Hope this helps.. Good luck.
It is all too true that it is really hard to get a home loan today. With traditional lending options, it would be impossible to get a loan with a 607 score. Most banks are looking for at least 680, but more likely needing a 700+ score. These scores also depend on your down payment amount.
There is an alternative. You should have your mortgage professional look at getting a FHA loan. Typically the minimum FICO for a FHA loan is well below 600. Other benefits include higher qualifying ratios and low down payment requirement. As with anything, there are restrictions (like income). That is why you should talk with a mortgage professional to see if a FHA loan would be the way for you to go.
Regarding your FICO, if you have already cleaned up any discrepancy, then only time will help to raise your score. Make sure you use your credit, just make sure you pay it off at the end of the month. Also, be aware of the coming change in credit score models. We made a video that outlines the upcoming changes in credit scoring. Take a look at it here:
Hope this helps.
Home loans are now available to many people for whom they would have been out of the question just a few years ago. You’d be in much better shape to bargain for better interest rates if you had a more impressive credit history, but if the house you want is the deal youinterest rates, get bigger returns on the money loaned, and the borrowers get a homes in which to build equity, and chances to restore their credit records so that the first bad credit home loans they take will also be the last!
These aren’t bad answers but you basically have two choices:
1) Go with an FHA loan. There is no minimum credit score. The underwriting and appraisal guidelines can be a little tough but it’s the only way to have a chance with a 607 score these days.
2) Head over to and try to get your score up a bit. It will take some work, but it will be worth it in the end.