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valley59

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my credit score is in the 560's how can i get a mortgage?

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wrong

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It is always good to pay off depth if you can, but paying off depth actually will hurt your score more then it will help it, juse like deputes with harm your report. FHA loans have a minimal 580 to qualify but higher rates. If a loan officer will give the loan is totally up to them, I myself received my first home loan for 62000 with a score of 567, and I did that through my bank which is a credit union. The best answer to the main question here is a higher score is better but a loan with a smaller score is still up to the lender.

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Pull all three of your credit reports from Trans Union, Equifax and Experian. I would suggest going through all 3 of them with a notebook to document the following:

1. Put all of your debt from the smallest amount to the highest amount in order.

2. You will have to figure out whats more important to you, paying your debt off and being able to go without luxuries, entertainment, etc.

3. So that it is not overwelming to you, pay off the smaller debt first, get confirmation number or reciept and ask them to make sure they report to transunion, etc that your account has cleared.

4. You can also talk down any bill by letting them know you are strapped for cash and only have a little of money, can they please ride off if you pay a certain amount...ex: your bill is $400 and you can pay $200 (THATS ALL YOU CAN PAY, IF NOT, YOU CANT PAY IT OFF NO TIME SOON) They usually go for it.

5. If you have old hospital bills, the hospitals have a patient fund help, that does the same as well.. 

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Bootsnboards

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we've got to be clear about a few terms being used here.

"Write off" or "Charge off": this does not mean this debt has disappeared.  It simply means the creditor with whom YOU have initiated the debt has given up on ever getting anything from you, so THEY have sold the debt to another entity.  THIS DOES NOT MEAN YOU CAN NOT WORRY ABOUT PAYING THIS DEBT.  IT MEANS NOW YOU HAVE A COLLECTOR, QUITE OFTEN A LAW OFFICE NOW TRYING TO COLLECT FROM YOU.  In all honesty, your debt was probably sold to them for pennies on the dollar if not less, packaged together with a few hundred other similar debts.  So settlement is still a win for the current owner of your debt.

@ Shuna39... with all due respect, none of this addresses the question of "How do i get a mortgage with a 560 credit score".

I'll take a stab at it.  You guy see this guy named Jimmy the Finger.  They call him Jimmy the finger because he charges no fees, he just takes a finger every time you miss a payment.  

You catch my drift?  There ARE actually guidelines governing what lenders CAN and CAN'T accept when it comes to credit scores if the loan is going to be guaranteed in any way.  For example, if you want an FHA loan, 580-640 is the min range on paper (640+ is where credit rating transitions from "poor, to fair").  The 580 low end is all fine and good, on paper.  The actual lending atmosphere is such that virtually no honest lender is going to touch you unless you're in a 620 to 640 range, MINIMUM.  And minimum means they know you're begging for scraps, so you're likely a target for predatory loans, ARMs, high interest rates, etc.

The way to approach the situation is to actually get a handle on your finances and credit situation FIRST.  Get your score up.  Start it now, because if you're in a situation like the classic, "But I don't have TIME to get my credit score up!  My landlord is selling my building and I have to have a place to live next WEEK!" by the time you first realize you need to fix your credit, you just painted the very reason as to why your credit got shot in the first place.  Lack of foresight, financial planning and personal discipline.  Those types of ppl aren't cut out to be homeowners, you're just a target for predatory lending agencies.

With a few slight exceptions, ofc.  There are always are exceptions.  SOMETIMES you can find a lender who will use non-standard means of assessing credit risk.  But don't count on it.  Manage your credit and finances.  Dispute errors, even in a valid debt.  Take control.

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Some lender go as low as 580 on an FHA loan. If you need to go that way. I try not to place borrowers in a FHA loan due to the MI costs, however unless you have a 620 score FNMA will not approve the loan in most cases. FHA rates and loans are not bad. I just think that if you have a choice, conventional is a better option.

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fica score vers credit score

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What is the differance between my credit score and my FICA score.

Reply by
Bootsnboards

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you probably mean "FICO" score.. that IS your credit score... at least the score most often referred to.  THere are often other scores that utilize the FICO score as part of their formula... renter's score etc.  But FICO is your scredit score wit hthe 3 major bureaus.

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You're going to have to build your score before that will happen.  Read the articles on this site and utilize the tools so you CAN learn these skills.  That is what Credit Karma is for.

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