Had a client a couple years back who bought with a 585. She was so excited to get out of her rental, and honestly, I get it—rent was climbing every year. But the payment on her FHA loan ended up being a lot higher than she expected, mostly because of the mortgage insurance and a not-so-great rate. We went over the numbers, but I think she was just focused on getting the keys.
Fast forward a year, and she wanted to refinance when rates dropped, but her home hadn’t appreciated enough and her credit hadn’t improved much. She felt stuck. It’s not that you can’t buy with a 580, but you really have to be honest about what you’re signing up for. Sometimes waiting six months to clean up your credit a bit can make a huge difference in your monthly payment. Not saying don’t do it, but definitely go in with your eyes wide open.
We went over the numbers, but I think she was just focused on getting the keys. Fast forward a year, and she wanted to refinance when rates dropped, but her home hadn’t appreciated enough and her...
That “eyes wide open” part really hits. I get the urge to just grab the keys and run, especially with rent going up like it’s trying to win a race. But man, those FHA payments with a low score can be brutal. I always wonder—has anyone here actually waited, worked on their credit for a bit, and then ended up with a noticeably better deal? Or does it just feel like you’re stuck in credit purgatory forever?
I’ve actually been in that “credit purgatory” zone for a while, and honestly, it’s tough to know if waiting is worth it or just spinning your wheels. I tried holding off for a year to bump my score, and yeah, the rates I got quoted were better, but then home prices kept creeping up anyway. Has anyone else felt like they’re just trading one problem for another? Like, you fix your credit but then the market shifts on you...
Yeah, I totally get what you mean. It feels like a game of whack-a-mole—get your credit up, but then prices or rates jump before you can catch a break. I was in a similar spot last year and ended up just going for it with an FHA loan. The rate wasn’t perfect, but locking in before prices climbed even more actually saved me in the long run. Sometimes waiting pays off, but sometimes you just have to weigh what matters more: the monthly payment or the price of the house. It’s never a perfect scenario, but you’re definitely not alone in feeling stuck between those choices.
Yeah, it’s a total juggling act. The FHA route is honestly a lifesaver for a lot of folks with credit in the high 500s or low 600s. I’ll admit, I’m a bit of a numbers nerd, so I always tell people to run the math both ways—waiting for a better rate vs. jumping in before prices climb higher. Sometimes the difference in monthly payment isn’t as dramatic as you’d think, especially if home values keep rising. Not perfect, but in this market, “perfect” is kind of a unicorn anyway.
