How likely can I buy a home with these credit scores?

Question

My girlfriend and I are looking to buy a home, I'm only looking for a payment of about 600.00 total. (that would include taxes,insurance, and PMI)

Our total income is about 40,000

Our total debt together is about 13,000

And she has about 10,000 in collections.

We checked our scores and mine is a 742, hers is 589.

We have about 5000.00 total we could use for down payment/closing costs.

I'm already spending 600 a month on rent so I know I could handle the payment. I know my chances would be better without her but I don't I think I have the right income for them to approve me by myself. What do you guys think?

Answer 1

consult your mortgage lender and real estate agent.  what happens when she's no longer your gf & you still own the house???

Answer 2

You can buy a home with no credit, and no down payment.

However, I think you are asking if you can buy a house the traditional way with your credit and income issues.

You are going to be hard pressed. You need to reduce your debt to around $8000. You need to get rid of those collections, and have your wife work with a credit repair specialist afterwards.

In the meantime, apply with a HUD or FHA loan program. They can tell you what you can or can't get accepted for.

P.s. You will be looking for a house less than $56K price range.

Answer 3

Get a government loan ( FHA), then get an experienced real estate agent to get you on the program with no down payment and no closing costs.  As for your girlfriends collections, she needs to contact all of them and offer a pay off, but only if they will remove the negitive rating on her credit, in writing. Say she has a $400 collection, do NOT pay it off without getting the amount down and a deletion of the rating, because if you just pay it off the credit score will go down since it is now a current paid off account!

Answer 4

With her credit score - no mortgage but without at least 20% down, you're probably out of luck anyway.