Credit Score Too Low

Expert, localized Los Angeles answers provided by Heather Roy

Credit Score Too Low
	My domestic partner has been trying to get a home loan for us. We are living in a 14x70 mobile home with our 5 kids. It's getting a bit cramped to say the least. His credit score is between 540 & 580. We can't seem to get a loan. I was wondering if we'd have more luck applying for less $ and getting a duplex with 1 unit already rented? Or maybe you know of another way to go about this? Any help would be greatly appreciated at this point.

	You'd have just as much trouble qualifying for a mortgage loan for a duplex as for a single house. Your partner should concentrate on bringing up his credit score. If he can get it just to 580, he might be able to qualify for an FHA loan. Here's what to do: go on a real drive to straighten out your finances. Give up extras for a while, till you get things where you want them. From now on, pay every bill on time. That matters a lot, and you don't have to do it for very many months to make a difference in your score. Cancel any recent credit card, keep old ones. Try to gradually pay down cards with the highest interest rates. After a few months of careful money-handling, talk with a mortgage broker.
	Edith Originally published on August 3, 2007

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