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Is it possible to get a home loan

94B10 said: "My husband and I are trying to get a house and we are in the process of clearing his credit. We pulled his report 8 months ago and his beacon score was 527. We don't think thats good enough for a home. We were advised on the other forum to dispute some of our inaccuracies like he's an authorized user and it shows up on his credit would be okay if it wasn't bad. There is a paid judgment that the creditor said he would agree to remove. 3 accounts that we have no idea what it is never heard of it. 6 credit card account which have 2-3 years more left because of SOL in Tennessee. He was able to get two small credit cards and has been paying on time to reestablish. We don't have money to put down but live in an apt and pay 765 and would like to get a nice home for our three kids. He has a very stable job thank god. That is the only silver lining. We talk to a guy at mortgage group and he didn't seem like he wanted to work with us. My husband has his VA and wants to use that. Writing this seems overwhelming. Anyways anybody that can help with advice on this situation, it would be greatly appreciated."

TScott said: "We are trying to buy a home too. That's why I started trying to clean our CRs. What I found out is that you can still get a loan but the interest rates will be much higher. I was told with a score of 540 that we could get 85% financed and in order to qualify for 100% financing/0 down we would have to be at 580. Not sure about the VA backed loans. We plan on using that as well but I have not looked into it to see if it makes a difference."

TScott said: "I just spoke to a mortgage consultant about a VA backed loan (got me thinking about it) and she said that with a VA loan you can get a better interest rate (esp. with a 1st time home buyer program) and they don't look at scores........they look more at your past 2 years of credit history. She also said they are a little more lenient on bad credit if you have a good reason (lost job, unforseen expenses, illness resulting in medical expenses..ect.). You would have to write a letter explaining your misfortune but they will take it into consideration. Maybe someone else here might have more info on this.........I don't know that much about home loans but I am learning. Just thought it was interesting and wanted to share."

94B10 said: "Thanks for the information. They must have improved or something because we wanted to buy a home back in 1993 and we didn't have much credit and what was on it was bad and so the va told us that we had to put down 10to 20,000 dollars down. I hate that a mistake i made back in 2001-02 is held over my head like this. Creditors should realize people change and most for the better. I don't think anyone of us woke up one morning and said I"ll screw up my credit today and pay the price for the next couple of years. Is there anyone on this board that is licensed mortage or loan person in TN that can give some detail in what steps to take."

MichaelG said: "You very well may qualify for an FHA loan. Under that program, they don't consider scores. But for now, why are you concerned with the rate? Who cares if it's a high rate? You should not be rate conscious with scores in the mid 500's. You should just be focused on qualifying and getting into your first home regardless of the rate, and later down the road after you've made 6-12 consistent pmts., you would then be in a position to negotiate for a more attractive rate."

TScott said: "[QUOTE=MichaelG]You very well may qualify for an FHA loan. Under that program, they don't consider scores. But for now, why are you concerned with the rate? Who cares if it's a high rate? You should not be rate conscious with scores in the mid 500's. You should just be focused on qualifying and getting into your first home regardless of the rate, and later down the road after you've made 6-12 consistent pmts., you would then be in a position to negotiate for a more attractive rate.[/QUOTE] Really? :confused: I definitely need to learn more. I thought we [B]should[/B] be concerned about the rate. I just want the best deal we can get on a home loan and I thought that included looking at the interest rates. I need like home buying for dummies.......lol........it seems so confusing."

MichaelG said: "Well, I'm not saying to totally ignore the rate, because you have to be able to afford the payment, so, yeah it does matter with respect to what your payment will be and if it's [I]affordable. [/I] I would'nt be shopping all around town though with numerous mortgage brokers, but it would be wise to check with another broker just to insure that your first rate quote is reasonable. Remember, the advertised rates and rate wars in general are geared towards conforming borrowers with scores typically over 620."

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