Does anyone know of any fiance companies that would give 100% financing for a low credit score?

Question

Thank you for your answers.I did try lending tree but the company they sent me to wants 10,000 down.

Answer 1

Some mortgage companies rely more on the items in your credit report than the score itself to make lending decisions. If you haven't had and Bankruptcies, Foreclosures or mortgage lates, you should be able to get 100% financing.

This most likely applies to those who have lower credit scores due to missed car payments, missed credit card payments, high utilization rates (the % of your total credit that is currently being used), etc.

You should contact a broker in the area and ask them to help you by identifying the different companies that might fund your loan for you.

Answer 2

Depends on what your credit score's are. A lender looks at the middle of the 3 scores. One company I underwrite for will look at the highest score and qualify you on that....or there are score averaging - add the 3 up and divide by 3 to get a score....

There are other factors to consider, besides credit. Job time of 2 years, collections on credit report - judgements on credit report. All of these are taken in as a factor on getting a home loan. Credit can be worked on, by adding alternative credit. If you are paying regularly on a cell phone, auto insurance, rent, etc - these are called alternative credit.. All is not HOPELESS - ok - take a deep breath. If your credit score is 500 or higher, anything is workable, with a seller second - etc the higher the credit score the better. But remember, the Lenders look at the middle score...of the 3 scores. If you only have 1 score or 2 scores (have seen it), it is still workable....but unless a lender sees the whole picture - credit - income - job time, etc - than you will not have a "true" picture of what you can afford - Hope this helps - There are also Government programs out there, but they too are looking for job time, etc.....They are not so much looking a credit - but the other factors are taken into consideration. With a government loan - collections and judgements will have to be paid (most ppl do not know that) but for FHA it is true....


Another thing to remember is: Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only - not the final - but it does help you figure things out.


Good Luck, and if I can help in any way check out my web site, for links to all the credit reporting agency's and other useful information

Answer 3

I also work in Mortgages but I will not offer you something that I dont know if I cant give it to you.

I do agree with bostonian, be prepared to pay a VERY high interest rates, specially in the second loan to cover the 100% financing.

My advice to you would be fix your credit first, its easy and you can do it on your own if you get educated. THEN and ONLY then think about buying a home. Homes are not going anywhere, the market is slow anyways so take some time to think it through, fix your credit and save some money for the down payment or at least the closing costs. Even if it was in my financial interest to help you get into a home right now I would tell you that its in YOUR best interest to fix your credit and save some money.

Like I said homes are not going anywhere for a while. Real Estate is the best investment you will ever make in your life.

If you want to learn more about credit, mortgages and Real Estate you can read many useful articles here: http://jrealestate.blogspot.com

Good luck

Answer 4

I had a similar difficulty. my credit status became 590 and that i merely offered a house that became $one hundred fifty,000. I went to a private loan specialist company and advised them that i'd like 100% financing. the way it worked for me became to bid the asking value of the homestead, on the situation that the supplier pay 100% of the remaining prices. There are merely some lenders that enable that, yet they are available. also, see if any costs you could acquire contained in the acquisition will be extra to the non-public loan. It prices somewhat extra contained in the destiny, yet once you've terrible credit and no reachable money, thats about all you'll be able to do. strong success! The call of the palce I used to stumble on a private loan became observed as option Lending. look them up on the internet.

Answer 5

It depends on how low the score is. Lots of lenders will do low scores though. The rates won't be great but you can get the loan. Check with a Mortgage Broker. They have access to lots of lenders and lots of programs.

If you're buying in CA, contact me... [e-mail]

Answer 6

Ask the mortgage professional who turned you down what steps you need to take to qualify for a loan without at down payment.

A good mortgage broker will not just turn you down and tell you to have a nice life. They will work with you until you are able to secure the financing you need.

Answer 7

nope, never heard of them. low credit score usually equals high risk, and most people with low scores cant afford the payments or interest rate, much less qualify for a 100% loan. and if it's a mobile home you want to purchase, forget it!

good luck though!

Answer 8

Many companies available for you. and you could get a loan for a short time to fix your credit and then you could refinance into a lower int. rate.
You could e-mail me with any questions. I am a Mortgage broker. and can finance just about anyone.
Info is always free.

Answer 9

Someone out there will, but be prepared to spend a fortune in interest payments. Also be prepared to have the phone ringing off the way the day after payments are due.

Answer 10

http://575nomoneydown.com

You can also try FHA w/a gift for 100%

You must have a good payment history, low credit score okay with FHA.

We do 100%LTV with a 575 FICO score.