Mortgages For People With Fair Credit

So you have a 605 credit score and want to get a mortgage to buy a house? You may be saying that "I know my credit isn't bad, but I know it isn't great either," and also asking "Who Will Give Me A Mortgage If I Have A Credit Score of 605?" Although you may be nervous about having slow credit or what is called "fair" credit, there is no need to worry because you can still buy a home even with a 605 credit score.  Your chances of getting a better mortgage loan increases as your credit score increases, but never-the-less it can still be done with a 605 credit score.  Even if you cannot get a loan through conventional mortgage lenders, there are too many options available for you to not realize your dream of homeownership.


So, Is A Credit Score of 605 Good Or Bad?

Frankly speaking, it depends on what you are applying for.  Some people can get a good car loan with a 605 credit score with no problems and a decent interest rate.  Some people can also get a small personal loan also with no problems and a decent interest rate.  Getting a mortgage with a 605 credit score can be done, but it is best to try and raise it a little. Right now, at 605, your credit is really considered "fair" which is only one step up from "bad." So although you are not in the dungeon, you are not exactly in the Penthouse neither.  If you want a good deal on a mortgage, it's best to try to get into the 670 to 700 and above credit range. If you can't get there, you may have to pay higher interest depending on the mortgage lender you go with, but you can still get a mortgage with your current credit score.

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Why Would Lender Lend To Me When My Credit Score Is Low?

Simple! They are in business to make money.  Even though your credit may not be perfect, you are still someone who needs a place to live who is willing to pay thousands of dollars in interest monthly in order to do it.  Your interest rate, and thus "cost of loan" is going to be higher and these lenders may make more money off you for taking a great risk.  It's never personal with mortgage lenders or personal loan lenders or loan lenders of any kind. It's always business.

What Can I Do To Raise My Credit Score above 605 Into Good Credit Range of 670 to 700 and above?

You can raise your credit score yourself by ordering all three of your credit reports separately and disputing all items that are not correct.  Dispute items that you are also not sure of and let the company verify it. Many times, the companies themselves don't have the records to verify the data and have to remove the item.  If something comes back "verified" that you know is not correct, keep writing and ask the credit bureau to remove this information from your credit report until the company sends the actual documents to verify the alleged data. 

Get help from a law firm to clean up your credit report.  Companies like Lexington Law Firm will help you clean up your credit and raise your credit score.  They do charge a small monthly fee, but if your goal is to raise your credit score so you can get a better mortgage loan term, then the small fee they charge is affordable.

Raise Credit From AverageCredit: Google images


What Other Options Do I Have If I Can't Get A Conventional Mortgage With A  605 Credit Score?

Get A Personal Loan

Get A Personal Loan For People With Bad Credit-You can get a personal loan for people with bad credit and then buy a home off eBay or or another real estate bidding site.  You can also get homes from public auctions right in your city.  Getting a personal loan if you have bad credit is much easier for you because your credit of 605 is fair and not really bad.  So you can easily get a loan, buy a home or get a down-payment on a home and fix it up as you go along.  Many homes you get from public auctions, eBay or Bid4Assets are in "move in condition," so you don't really have to spend too much money fixing them up.  With a bad credit personal loan, you will be paying higher interest, but if you get a loan with no pre-payment penalty, you can do things from home to make extra money to pay the loan off faster.

You can also use the bad credit personal loan money to buy a mobile home.  You can get mobile homes and the land to put your mobile home on from eBay and  Some mobile homes today look like luxury homes, but they are still at a mobile home price.  These are cheaper options to get you into a home right away. 


Save Until You Can Buy Your Home Outright

Instead of getting a bad credit personal loan as suggested above, you could save your money over the course of years and then buy your home from an auction, either online or right within your community outright. If you use this option, also save enough to cover expenses of repairs and tax bills for at least 3 to 6 months as a part of your emergency cash fund.


Ok, Who Will Give Me A Mortgage If I Have A Credit Score Of 605?


NACA (Neighborhood Assistance Corporation Of America) is a HUD certified neighborhood counseling agency that helps you get a mortgage to buy your home.  This program is for first time homebuyers who have good credit, bad credit, fair credit or no credit.  With the NACA program, you can get good quality home loans at interest rates that are as low as or even lower that those offered to prime credit or excellent credit borrowers. This is because this program is designed to give those who have been disadvantaged in this society a fair shake at owning a home and living the American Dream.

Hud Federal Housing Programs

Through Hud's Federal Housing Program you may qualify for a home loan even with a 605 credit score. Through FHA loans, you can have access to loans to buy homes that have easy credit qualification process, low down payments and low closing costs.  You must first contact Hud Counseling Agencies, who are trained to help you understand and recognize different options available to you.

Local Home Buying Programs

There are goverment sponsored Local Homebuying Programs all over the United States. Through these local home buying programs you can get all the help you need in order to prepare properly for the home buying process.  Through these home buying programs you can also get Homeownership Vouchers to buy your new home. You simply go to the website and click on your state and follow the directions given to you about your state's local home buying programs.