Do I have a decent shot at approval for a mortgage during a credit crunch?

calendar October 26, 2008
credit crunch
Chessmistress1000 asked:


FICA score around 600 (I’ve been working to repair it)
2 1/2 years steady employment at the same job.
I’m only looking for a starter condo in my area.
I can come up with a few grand for a down payment.
My Mortgage Broker says I’ve got a shot, but that was before the economy took a dump!
I could stay in the places I’m looking at for a few years comfortably.

Should I even bother filling out the application?

admin Renting & Real Estate

3 Responses to “Do I have a decent shot at approval for a mortgage during a credit crunch?”

  1. flatfootfred Says:
    October 28th, 2008 at 11:33 am

    600 is not very good, going to be tough.

  2. Sweetness Says:
    October 30th, 2008 at 3:17 pm

    I would say wait until you have extensive knowledge on what to do. I would do research on types of loans and try to find article about loans/mortgages gone bad to get an idea of what you want to stay away from. I say this because my economics professor says that some brokers sometimes trick first time buyers into somethings where they cant make their monthly payments and have to refinance which ends up costing the person more money. So I would say research, research, research.

  3. Eyes2302 Says:
    November 1st, 2008 at 9:23 pm

    You’re a perfect candidate for an FHA loan. If you can put down at least 3% and have a good rental history, you would most likely qualify for this type of loan program. FHA is about the only option left for consumers with low credit scores as sub-prime lending has pretty much disappeared. You can rest assured when seeking this type of financing. It is government insured and the guidelines are strictly regulated so as not to allow you to get into something that you can’t afford. Most banks will offer FHA financing. Your best bet is to go to a lender, let them pull your credit and sit down with you to determine how much you can qualify for, but more importantly, how high of a payment you’re comfortable with.