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My fiancé and I are preparing to purchase a residential home. How can we get pre-qualified with my credit score at 564 and hers at 656?

Both our incomes are $90,000, we have $5,000 in savings and we are first-time buyers. We live in Brooklyn (11226).

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  Answers  |  5

November 07, 2014

Hello,
Financing guidelines require a minimum of a 640 credit score for most programs. Here are a couple tips that I can give you to help improving your scores:
1. Pay off any collections, or judgments.
2. Pay down revolving debt. If you owe near your maximum credit availability, this will lower your scores.
3. Review your payment history. If anything is inaccurate you can file disputes with the three credit reporting agencies (Transunion.com, Equifax.com, Experian.com).

Hope this helps?

Sincerely, Sarena Solomon

$commenter.renderDisplayableName() | 07.20.17 @ 18:41

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December 05, 2014

We can do FHA loans with score as low as 500 ( short sale or foreclosure must be 3 years...). Collections must be paid at closing.

My suggestion is to first meet with a lender who gives you a copy of your full mortgage credit report and start working on improving, fixing and paying the blemishes before you make any offers.

$commenter.renderDisplayableName() | 07.20.17 @ 18:41

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December 11, 2014

Great suggestions by the two previous professionals. You may also consider using your spouse's score only, but get it up to 680 (not hard with the suggestions above). I suggest you not apply for the loan or make any offers until you get your handle around your credit. You both make good incomes and should have good disposable income to pay off/down your debt. Write to each credit bureau and dispute the inaccuracies. Some will drop off by no response. Then for the legitimate credit balances, pay them off or down. Negotiate where you can. Try and get any collections deleted - some will in exchange for payment. Delete is not the same as paid. You must also ensure there is no debt that is delinquent or collections outstanding, no matter how small or old - if it is not addressed, it drives the score down. A score of 680 can get you a decent rate; 720 or better can get you premium pricing. While it may take a while to increase your score from 564, it shouldn't be hard to increase from 656, especially if you have a few items that are rectified or removed that may have been root cause of low score.

Then find a good seasoned mortgage professional in your area to work with you before making any offers. Get fully approved so all you need to do is attach the home to the loan... this would be less stressful and give you more bargaining power with sellers!

$commenter.renderDisplayableName() | 07.20.17 @ 18:41

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June 23, 2015

You can't. She will have to have the income to qualify on her own. She can add you to the deed after closing with a simple Quit Claim. Good Luck!

$commenter.renderDisplayableName() | 07.20.17 @ 18:41

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December 27, 2016

Your first step needs to be looking at your credit with a lender to determine how to raise your scores. To obtain an FHA loan with the lowest down payment, all borrowers on the loan must have at least 580 mid credit scores. In addition, most lenders place additional score requirements, some (including my bank) have 600 minimum scores, some are all the way up to 680 on certain scenarios. Review your credit with a lender, come up with a game plan for improving your scores (and minimizing your monthly debts), and you're on your way. I write loans nationally, feel free to contact me through my profile if you'd like more specific advice.

$commenter.renderDisplayableName() | 07.20.17 @ 18:41

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