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Larios05

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Can a bad credit score prevent us from buying again?
Husband bought our house in October 2013 in Pico Rivera, CA . Have an FHA loan (with PMI) at a 3.5% rate. The outstanding loan value is right around $281,000 FORTUNATELY home value is between $375-$400k (House is updated, wood floors and granite countertops, 2 bed & 1 bth) . Husband and I are really struggling financially ( had a second baby and I stopped working ) and have fallen behind on mortgage payments a few times causing his nearly perfect credit score to fall in the high 400s . Ideally we really want to sell since it has gathered quite some equity and take that money to give a generous down payment on a cheaper home (we want to buy a home in Bakersfield 93313 , double the sq. ft for less than 250k . and yes we know the Pros and Cons on Bakersfield but for us it feels right) My husband has been working for the same company for 10 years, company is willing to transfer him and he makes nearly 70k a year. My question is, is it impossible to get another mortgage on the contingency of selling our first home given our passed missed payments and his bad score? ( will note that besides the missed payments, he has no other derragotory items in his credit) . Really feel like we need to do something soon before we loose grip. Any advice helps, thanks.

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That low of a score will make it impossible to get a new mortage.  I would suggest talking directly with a mortgage broker and see if there is any avenues, but my best guess would be to sell home that you can not afford, take equity and invest, rent a condo/appartment until you can get your credit score back up, plus the interst you have earned, ectra money you have saved, by the time you can get a mortgage you might have more than 50% of the house payed for in cash.

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