Would I be able to buy a home in near future?

[nataliachick7]

OK, I'm going to try to make this short and simple, so here goes. My fiance and I both have credit scores of about 530 :/
I have paid off several delinquent accounts on my credit report, but still have one major one that is about $1500 that i plan on paying off soon. He has several he has paid off recently as well, but has a few more left.
About a year ago i got a secured cc to help with my credit, dont know if its doing much. He has a cc in good standing. We pay utilities on time, etc.
I currently have student loans through the government for cosmetology school.
If we were to go to try to get pre approved for a house (fha loan??), what do you think the results would be? Probably not good, right? Does anyone have any suggestions for us? Thank you

[SunshineJ]

Probably the best thing you can do is have something with consistent payments for 6 months. I would think that should boost your score up to the 600 range that the FHA looks for.

[zebra15]

What is your income? Your credit score is more than just debt, its also INCOME. Plus your lender is going to need to be able to see that you have a way to pay the mtg.

[Porcelain Interior]

You have to have decent credit, but sufficient income + down payment are the most important factors.

How much do you have to put down?
How much money do you have combined to live on each month?

Those are the missing pieces of the puzzle in addition to credit- and your credit score as you probably already know is pretty bad. Though it's fairly easy to raise those up in a relatively short amount of time.

A good rule of thumb is if you're having trouble meeting basic needs a home is probably not a wise purchase right now- nor probably even a possibility.

[nataliachick7]

I prob bring in about $1000 a month and he brings about $2500?. I have had several things that have had consistent payments for over 6 months at this point. thanks

[MyTwoAs]

In addition to what is mentioned here, you'll also have to pay off any charge off or collection accounts prior to getting a mortgage finalized. If you can work with the agencies to reduce your payment (so if you owe $500, see if they'll take $250) and consider it paid in full, now is the time to do it. If you wait until you start shopping for mortgages, the creditors will see that you are trying to purchase a home and they are less likely to accept a reduced payment amount as settlement on the account. They'll know that they are in the way of you getting that mortgage and if you *really* want the house, you'll pay them in full with no reduced settlement amount.

[nataliachick7]

Originally Posted by MyTwoAs

In addition to what is mentioned here, you'll also have to pay off any charge off or collection accounts prior to getting a mortgage finalized. If you can work with the agencies to reduce your payment (so if you owe $500, see if they'll take $250) and consider it paid in full, now is the time to do it. If you wait until you start shopping for mortgages, the creditors will see that you are trying to purchase a home and they are less likely to accept a reduced payment amount as settlement on the account. They'll know that they are in the way of you getting that mortgage and if you *really* want the house, you'll pay them in full with no reduced settlement amount.

Great advice thank you so much!

[bobandjess99]

Sure, if you start fixing stuff and don't make any more mistakes. Heck, we bought our house when dh was just 4 yars out of a Bankruptcy. It took us about a year of trying, of combing through the credit reports and fixing stuff, of opening accounts and paying on time, of proving creditworthiness, to get a house.