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Bkegg · Aug 17, 2007, 12:00 AM

I have a credit score of 592, I am 20 years old and have only 500 in debt, I make $44,000 have a wife a 2 kids. I'm trying to get a house that costs $69,500 with Texas First Time Homebuyers trying to assist me. I can't sleep because the woman I talk to about the program and loan hasn't called me back yet.

I think I have about a 55% chance of approval. But I could always go home and live with mom until I improve my credit score.

Any good tip for a young man trying to get a house? If I'm denied should I try another lendor?

Clough · Aug 17, 2007, 12:09 AM

You could always try another lender. When I purchased my home 17 years ago, I was very disappointed in the first bank that I went to. The guy that I spoke with didn't have much faith in me at all. Even though I was and had been working full-time for awhile and had everything in place that I needed to have in place for a closing. Although, I am sure that my credit score wasn't all that good. With the second bank, there was no problem.

But, there may be others more knowledgeable than me about such things who might come along to offer their advice also.

Fr_Chuck · Aug 17, 2007, 05:46 AM

There are many lenders, and mortgage companies, some will look at your current debts and income and not just at the credit score. And look at your ability to pay the monthly payment, taxes and insurance.

Bkegg · Aug 17, 2007, 09:07 AM

I hope that is the case. I have plenty of money to make the small $600 or less payment I'm paid 790 or more at some apartment complexes with no problem and with less money per month.

DianeV Sr Loan Officer · Aug 19, 2007, 11:59 AM

You may do well with an FHA mortgage. They allow for 3% down payment and are backed by the US govt. You may also be able to combine with the Texas program you are looking into. The state programs are usually bond programs that provide a lower interest rate for first time borrowers. They can usually be combined with FHA. I would stick with this lender for now, until you get an answer. My recommendation if you cannot use that program is to try FHA elsewhere. Most of the major banks and some brokers offer it. Given the state of things stay away from any subprime. And good luck to you.