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Can I Get A Mortgage With A 600 Credit Score in NC?

http://listings.realbird.com/Real_Estate/In-Ground-Pool-to-Enjoy-/Cary/NC/C9I7L9R4/187635.aspx?tab=photosWe talk to people everyday who want to know if they can get a mortgage, a home loan, with a 600 credit score in NC – the answer is POSSIBLY!  In North Carolina we have a program backed by the State, that allows people who meet the minimum household income for their county, and who are purchasing a home that is under the maximum sales price to buy a home if at least 2 of their 3 credit scores are a minimum of 600.

The NC First Time Homebuyer Program is not just for first time homebuyers!?  That’s right! The program is for ANYONE who has not owned a personal residence for the last three years - there are some unique caveats, so if you think you might qualify for the program, call us at 919 649 5058

Here are some of the most Frequently Asked Questions:

  • What’s the minimum Credit Score I need for a USDA Loan? If you are using the USDA Home Loan program, the NC State First Time Homebuyer Program requires that at least 2 of the 3 credit scores be above 600.  Remember, the Maximum Income Limit is LOWER when you are using the NC First Time Home Buyer Program than the limits set by USDA.  There’s also a Maximum Sales Price for new or existing stick built homes of $225,000. (the house above is listed for $215,000)
  • What’s the minimum Credit Score I need for a FHA Loan?  If you are using the FHA Loan Program, and you either have the 3.5% down payment, or you are getting a gift for the 3.5% downpayment, then you need at least 2 scores that are at 600 or above.  Again (I sound like a broken record) the NC First Time Homebuyer Program has income limits at a per county level.  The maximum sales price is either the maximum set by FHA for the County (it could be as low as $217,750) or $225,000 – whichever is LESS.
  • What’s the minimum Credit Score I need for the $8000 Grant? If you need the $8000 Grant from the State to use as your downpayment – then you’ll need 2 of your 3 scores above 650.
  • What’s the minimum Credit Score I need for a VA Loan?  If you qualify for a VA Loan, and you meet the NC First Time Homebuyer Program, you will need at least 2 of the 3 credit scores above 600.  There’s also a Maximum Sales Price for new or existing stick built homes of $225,000.
  • Does the MCC Program give me a Credit Score Advantage?  No, the Mortgage Credit Certificate does not vary based upon your credit scores.
  • Can I use the NC First Time Home Buyer Program if I have a Repossession on my Credit Report?  It’s a difficult question to answer, but in general, if you have a large outstanding balance showing from a repossessed car or truck, it’s going to be difficult to get a home loan. If, on the other hand, the repossession happened over 5 years ago, and it’s not showing as a $5000 outstanding balance… AND you’ve established other GOOD credit ratings, we might be able to help you buy a house. Again, you need at least 2 scores over 600.
  • Can I use the First Time Home Buyer Program if I have Collections on my Credit Report?  If the collections on your credit report are under $1000, and they are medical collections – then you will generally be okay, without paying them off.  If the collections are from Verizon, and an apartment complex, and a credit card – those need to be settled before you apply for a home loan.  In General, you need at least 3 open credit lines, and 12 months of “clean” credit to obtain a mortgage loan.  2 of the 3 credit scores must be over 600 to qualify for the 1st Time Home Buyer Program.
  • Can I use the First time Home Buyer Program if I had a Bankruptcy?  Guidelines for the First Time Home Buyer Program Mirror those established by the Government Underwriting Agency (READ depending on the program you are applying for there are WAITING PERIODS!), the exception being that you can qualify with 2 credit scores over the 600 minimum credit score mark.  HERE ARE ALL Bankruptcy Guidelines for ALL PROGRAMS

Meet these guidelines?  We’d love to help you buy a house in NC!  Tired of Renting and ready to buy a home in NC, please call Steve and Eleanor Thorne 919 649 5058 we offer today’s best mortgage rates, and we know what Underwriters in NC are looking for! Connect with us on Facebook!

Comments

  1. says

    Hi Eleanor, Im a first time home buyer, well hopefully soon to be. I would like to purchse a home above the limit. It is 230,000. If I pay the difference can I still get the first time buyer benefits?

  2. says

    It will depend on the amount of cash you have. The NC Program is looking for “needy” first time homebuyers. That’s not to say it won’t work, only that it would be best for you to call us so that we can get the full picture and give you the best answer! If it’s a gift – then YES, otherwise, I’d say MAYBE? :)

I try and answer all questions :)