Just remember you need to have compensating factors. For example if you have a 600 credit score or lower, be sure you have a sizable 25-30% down payment even if you have had a bankruptcy in the last 2 years you can still buy a house but now you are looking in the 40% down payment range and an interest rate at about 12-15%. The more things you have working for you, the less you have to give up. If you have a credit score of 700 or more and you put 5% down, it is a good possibility you can qualify without having to prove income or assets and your loan can be backed by the government. Also, if you can’t make a down payment, be sure (as was mentioned earlier) to calculate what you make and what you can actually pay. Many government programs right now are flexible as long as you can document income and assets.

There are 3 things.

1. Income
2. Bills you pay each month
3. FICO scores

1. Income As a rule you want to be earning (gross before taxes) 3 times the amount of the payment. ie: House is $1000 a month you need to earn $3000 a month

2. Bills
But now we get into bills and this will subtract from that $3000 you make per month. See, if you have $500 a month in credit card bills they are not going to look at it as you earn $3000 rather they will look at it as you owe $2500 So in most cases its good to pay off monthly credit card bills so it improves the way you look in the lenders eyes.

3. FICO is important. There are 3 major credit agencies and you can find out what your fico score is through each one. Most credit reports can be improved just by looking at them. You may have old old old stuff on there that can be taken off by writing a letter to the credit reporting agencies.

Think of a 3 legged stool. Even if one of the legs is missing the stool falls over.

Likewise, if any of the 3 listed above falls below the limits the loan falls out.

The only way to eliminate the 3 legged stool way of buying is money. With 20% down payment you can basically qualify for almost anything as the risk factor for the bank is practially nill.

They’re looking for at least 620 credit score, no lates for the last 12 months, definitely no repos or foreclosures.

Ex: $55,000 gross income a year and no other debts qualifies you for a home that’s ~$130,000-$150,000.

Bankruptcy is bad, foreclosure is really bad

re pos foreclosures hurt income credit score are very important the overall ability or liklihood you can repay the loan