Questions about credit score?

[troyes]

This is my situation: I would like to purchase a house within the next few months. I am recently out of bankruptcy 2 years (which is the new law for purchasing a house when you filed bankruptcy). I have $1200 saved, a first time homebuyer. I just looked at my credit score, it says 610. I just payed off 2 collections and they said they would file that these collections were paid on july 30th to the credit bureu. I do have student loans on my credit report but they are defferred until i graduate college which will be next spring. my report says that i have 76.13% of my credit available. My questions are: how long will my credit score take to come up after my paid collections get reported? how much do you think it will come up? any adivce about my buying a house? Thanks

[leonie36]

On the surface, you sound like a great candidate for an FHA loan. I suggest you contact a mortgage company that does FHA.

[ned]

A credit score is based on a 12 month activity and goes up 5 to 10% per month providing you are paying to time. A fair score is 620/659 and good score is 660/749. If you're employed at least 12/18 with a decent income, you should contact a mortgage broker for your best options.

[slaine]

You may be okay on the score...except that FHA does not use scores - they go back 2 years and look for perfect credit...which means the two recent collections may hamper you. The other problem is the lack of a down payment - $1,200 is not nearly enough considering you will probably also have to pay closing costs plus have two months worth of mortgage payments in the bank extra. For a $50,000 mortgage (usually the smallest they will lend), you are talking at least $5,000.