Can I get a good mortgage rate with a credit score of 631?
My score took a hit from one account in collections that is now paid off, so I'm sure my score will go back up at least a little bit before long. It was just a misunderstanding and I am otherwise pefect in my payment history with other accounts. I had a score in the low 700's before that. Is 631 good enough to qualify for a good mortgage, or should I just keep renting until my credit recovers?
Public Comments
- Your score is fine. With what you are saying you could easily get any Fannie Mae Freddie Mac or FHA loan. You wont take any hit for your credit score. If a lender says you will get a new lender. Now is a pretty good time, properties are cheap and rates are still low. Good Luck
- With your score, you can go FHA or conventional. If your information is correct, and a reasonable debt to income ratio, you can easily qualify. Programs are always changing and it is definately a buyer's market now. Take advantage of it now. visit www.hometrustlending.com
- if you have the down payment this is a a good time to entry the market -- and your score is good enough!!!
- you won't get a real great rate with that score - wait until it gets back to 700 - save money in the meantime - the housing market hasn't bottomed out yet, so you could wind up getting a better price on a house in a yr
- rates also depend on your down payment and Debt to income. 100% financing will have rates of around 6.75% for 150k loan amount. 97.75% FHA loan wil have rates 6.5% for 150k
- 631 is too low, the new average is 760 for the best rates. Number went up from 720 due to the credit crunch.
