I have read through the posts on mortgages about people with bad credit trying to get mortgages, etc. I must have really bad credit! I thought my husband and I were really doing better, but my husband's FICO is 580 and mine 560. Mortgage companies tell us it's "not that bad" but turn around and say...25% down and pay off some debt. We can't do this. We have been renting since I can remember. We are trying hard to get things in shape (i'm not trying to sound like a whiner - we have had MAJOR medical bills). Where do I look for a mortgage company that is willing to work with me for a decent down payment?? I am diligently paying off debts, which doesn't leave much room for savings. In the meantime, we continue to "throw away" $750 a month on rent, which we have NEVER been late on. Same goes for car loans. Virtually impossible to find someone to loan money on cars, even though most of our bills are charge-offs are 5+ years old. We even have 5 good trade lines that are current!! What is the deal?? Sorry to be so long, but everywhere I turn is a dead end. And I am tired of adding even more inquiries on my report!! Thanks for any advice.
The FCRA (federal) won't help you until 7 years after the charge off date for charge offs that old. In what state do you live? Some state laws give consumers more rights.
Your charge-offs are 5+ years old and the "traditional" underwriters still won't touch you, typical, and another damning indicment that the mortgage industry is NOT on the consumer's side. Actually the biggest problem is your FICO score, I believe its even too low for an FHA loan. My advise is to wait out 6+ months until enough of the inquiries drop off to push your scores both above 600 wherein with your 5 good tradelines you should have no trouble getting an FHA loan which does not require you to pay off your ANCIENT charge-offs or put down a huge deposit.
I agree with Steven Z to give it a little time for the inquiries to drop off - this will also give you more time to save more for a down payment and/or pay off some debt. That way your FICO can go up. After giving it some more time, you might want to consider Full Spectrum Lending. They are part of Countrywide, but they focus on people with no-so-perfect credit. If they think your scores and situation is good enough, then they will turn you application over to Countrywide so you can get better rates/loan programs.
I agree. I really like the fullspectrumlending.com website. they are a siter company of countrywide loans, both are very reputable. Have you tried fixing your credit report through dispute letters yet?
Yes, I am working on that because a lot of the problematic credit is old enough that creditors don't take the time to fight it. So I am working on it. I found out my FICO score from a mortgage company. Is there a way to find it out otherwise?
I would highly suggest Full Spectrum Lending. My husband and I have pretty bad credit with low FICO scores, but I submitted my information over the Internet, and they called me back that same day. He asked me a few questions, and he approved us for a home loan within 5 minutes. We are now in the final stages of the loan process.
