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Buying a house? Not with your credit score.....

Posted by Debbie Marable on Friday, January 6th, 2012 at 4:24pm.

By Don Taylor of Bankrate.com

The good news is you can turn your credit score around. All you have to do is
get current and stay current on your bills. Negative information, other than a
Chapter 7 bankruptcy filing, stays on your credit report for seven years. A
Chapter 7 bankruptcy filing stays on your credit report for 10 years. Once you
get your credit score back up into the upper 600s or low 700s, you can consider
applying for a mortgage.

Your income will limit how much house you can afford. In general, mortgage
lenders don't want their customers spending more than 28 percent of their
monthly income on principal, interest, taxes and insurance. The lender will have
underwriting standards concerning how they count child support payments. In
general, you have to have been receiving payments for the past year and expect
to continue receiving payments for the next three years for the child support
payments to figure into how much house you can afford.
 

Aside from income, you must also consider how you will come up with a down
payment. When you have your credit in shape, approach your local housing
authority about grants and down payment assistance programs to see if you
qualify.

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