Credit score of 607- can I get approved for $115k mortgage?

I would like to purchase a fairly cheap townhome (only 115k). Would it be possible to get approved for a home loan (100% financing). If it is any help, even though my score is low, it's actually on a steady climb upward -from a 540 a year ago.





I've been employed at the same business for 3 years, I make decent money and this would be my first home purchase. My credit usage is down to 31% with 69% available.Will I get approved, you think?





Additional Details: I posted this yesterday but here's some add'l info-








It's not that I don't want to put anything down. I just wanted to know how likely will it be to be approved for 100%. I have only 8k set aside (my total savings) for downpayment and closing so I don't know what they will ask for each.





ALSO-. I may not be able to use FHA because I'm buying into a different state (from where I reside) and I'm not sure if the townhome community is FHA approved. Also, this is a home that I will be having built (this is a new community)Credit score of 607- can I get approved for $115k mortgage?
Yes, you can get a mortgage, but you'd better have some money to put down. Anything under 620 will have to put down something. But your credit-to-debt ratio is pretty good, and your work history can be verified, so not too bad. Good Luck!Credit score of 607- can I get approved for $115k mortgage?
My brother in law had to pay off all his collections and have 10k downpayment and he got approved for 230,000. I think his score was the same as yours. My husband had 7k (from a repo) in collections we paid that off and got approved for a 200,000 with only 2k down. We got a FHA loan also.





Good Luck
To find out specifically what you must do to raise your score, you can order your score report from all three national credit bureaus. In addition to your score%26lt;!--you'll get your credit report, an indication of how your score ranks nationally and an explanation of how you can boost your standing.





http://badcredits.awardspace.com/creditscore.htm





In order to improve your credit score, it's important to know where you stand currently. Despite all the media attention given to free credit reports--%26gt;you still have to pay to find out your credit score, the three-digit number ranging from 300 to 850 that is the key to your borrowing costs.
It depends on the lender of how much risk they want to take. With the recent subprime mortgage loan problem that they have, reputable bank may not take a chance to loan $115,000 to someone with a low credit score with no money down. Subprime mortgages are offered to lower-income borrowers with spotty credit records. Of course, you have to pay a higher interest rate. With a higher interest rate, because of the low credit score, you proabably will get an adjutable rate instead of fixed rate. You may not be able to afford your monthly mortgage.
FHA is for anywhere that you go. Communities dont need to be approved....only that you live there as a principal residence.


fha has county limits which you may want to search on the search engines for 'fha county limits'





If you dont want to use your savings then have the seller pay your closing costs. FHA wants 3% from your pocket, but can be given by the seller also. (With the special programs) Not many sellers are willing to do it though.


if you truly want NO MONEY DOWN then you need to try to get a 620 to avoid HIGH pmi payments....at 620 the PMI is very good!!!
ya with high interest rate..





Do This for better rate





1. pay off debt


2. work on your credit


3. get that fico score up to over 700


4. save and save


5. buy a home next year or two


6. this way you don't get foreclosed on or less likely to get foreclosed on