Could qualify for any type of mortgage loan with a fico score of about 518-525?

Forget about buying a home with those credit scores, no matter what anyone tells you. It just isn't going to happen. On the other hand, you could take the $8000 and use that to repair your credit, pay off collections, etc. By getting your score up over 640, not only will you get a home loan likely using a first time home buyer program, but it will help everything else in your life. For example, do you realize you are likely paying twice as much as need per year in car insurance because of that low score?

I would advise utilizing your $8,000 in cash to clear any negative items that may be keeping your credit scores down. Once your credit scores have gotten above 620, you could qualify for a FHA program that will only require 3.5% down of the purchase price at max. If you're buying a home in the city of Atlanta there are a lot of programs that will help you with the down payment, but you have to qualify credit wise. You can visit www.annualcreditreport.com to get a copy of your credit for free!

There are lenders out there that will finance you with scores down to 500, however the guidelines are VERY stringent... best advice I can give you is to contact a local mortgage broker, not a bank, and apply with them... they have access to numerous lenders as well as credit restoration companies, and can find the right resources for your particular scenario.. WilliamAcres.com

We have investors that will look at lower FICO score borrowers. The real question is why is your score so low? Some of the issues causing the low score may have to be resolved to get any loan. In many cases, it is fairly easy to improve one's scores. Contact a local Mortgage Banker/Broker, rather than one of the big banks. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. Also, a Mortgage Banker/Broker will be willing to work with you to clean up your report to improve your scores. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

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