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my credit score=675. Is there a possible chance that I can get approved for a home loan?
I am a few months short of 20 years old. I have $3,500 in credit card debt. None of them have ever been late, and I pay over the minimum due. I have a car loan that I have had for a year, $6,350 is the remaining balance. (my brother co-signed, now i have a higher score than him) I have $1,500 saved up. I want to know if I have any chance. I absolutely HATE renting, and i swore I wouldn't do it longer than a year. Guess what, that year is almost up. I checked my credit report, all is in the green. (one negative thing is; too many credit inquiries) I have had credit for two years now, with a 3 day gap in my employed history. So I think by now I should be able to get something, looking for a home under $50,000. Not wanting a large down payment. Foreclosure or fixer upper. Thanks! (hope)
I make around 1,400 per month.
p.s. car payment is $194.00 per month, and my credit cards equal to nearly $200. That's all my debt.
*credit card payments per month=$200
10 Answers
- Anonymous1 decade agoFavorite Answer
You didn't say what your monthly payments are on the credit cards and car loan, but assuming your debt to income ratio is within the guidelines you sound like a good candidate for an FHA loan. The down payment is between 3% - 5% and the qualifying ratios are not quite as strict as conventional loans. You will have to explain the inquiries, it's not a good sign that you were applying for more credit at the same time you're applying for a mortgage . Some inquiries are noted as to whether an account was opened. For the ones that don't the underwriter will want to know if any a new account was opened from any of the inquiries and why you were applying for new credit. They may or may not ask if you were denied credit and why for any of the inquiries. BTW the minimum credit score for an FHA purchase is 580. Check with the credit bureaus, I believe inquiries drop off your credit report in 3 months. If so you may want to wait the 3 months.
- 1 decade ago
Yes it is Very possbile! I just got a home mortagae approved with a credit score of 645 so the best thing to do is find out for yourself!
The media will paint a negative picture of everything they can get there hands on! Try to go for a FHA loan they require at least 3.5% you are on the right path and don't get discourage. Also another thing I have an uncle that is in the mortagae buniess and he will tell you 675 is a Good score that is not bad by all means! What is bad is suckers wanting to pay rent for the rest of there lives for something there going to NEVER own so try to get decent finiance rate possbile and GOOD LUCK!
- 1 decade ago
The fact of today's economy is this: it will be tough to get a home loan with a credit score of 675. 675 is below the national average. A lot of lenders now require a minimum score of 720.
It's not that you have done anything wrong. You sound like you're making a very good effort to be a good credit risk. And while you did not play a part in today's credit crunch, you are caught in it.
Hold onto your dream of home ownership and keep paying your bills on time every month, and things will eventually fall into your favor.
Source(s): http://www.creditcardsforamerica.com/ - How do you think about the answers? You can sign in to vote the answer.
- Anonymous7 years ago
I'm certain that you might find many financial clarification at= loanfocus.info-
RE My credit score=675. Is there a possible chance that I can get approved for a home loan?
I am a few months short of 20 years old. I have $3,500 in credit card debt. None of them have ever been late, and I pay over the minimum due. I have a car loan that I have had for a ...show more
- Anonymous1 decade ago
You left out how much you earn annually. If your debt/income ratio is too high, especially with the car loan and credit cards you will not get a loan til those are paid off. The inquiries also will kill you. Try for FHA financing if you want a 50k home as the down payment is 3.5%.
- 7 years ago
You will need at least 10-20 % down payment to make it happen, one thing to note, banks won't lend out for house's in need of a lot of improvement. You may have a better chance getting a house that cost 40K or less. with 10-20 down.
- Anonymous5 years ago
That's a good question!
- Anonymous5 years ago
Thankyou for the answers EVERYONE xx
