My credit score is poor, non-prime & I want to buy a home. Any lending agencies that will work with me? Ideas?

Question

Trans Union score is 526 Very Poor (the worst rating)
Experian score is 658 Non-Prime (the worst is High Risk)

I make good money now and most everything has been paid off or will be in a couple months. My bankruptsy due to ex's business venture failing comes off in December. Thanks for any help!!

Answer 1

You have some good answers here, however with a bk you do not qualify for a government loan and you are missing a score. Sometimes a credit score can be zero, thus you would use your lowest reporting score to qualify. Paying things off are great but keep lines of credit open to help increase your credit score. Credit scores are based on many things but revolving credit and showing the ability to repay is a major factor. With both the price of homes and interest rates rising, you may want to purchase before the bk falls on your credit report. Whatever you decide good luck but if you need any help or have any questions feel free to email me [e-mail].

Answer 2

All is not HOPELESS - ok - take a deep breath. If your middle credit score is 500 or higher, anything is workable.

You mentioned 2 scores 526 - 658 What is the other score?

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.

There are other factors to consider, besides credit. Medical Bills are Over looked buy underwriting (since medical is a un-forseen event), where as credit cards, are looked at (since you purchased items on a credit card.) Also, Job time of 2 years, what collections are on your on credit report - judgements on credit report. All of these are taken in as a factor on getting a home loan.

Decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok -

It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 2-6 percent of the selling price, and you ask for 4-5 percent toward closing cost -assistance) Follow me so far??

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.

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

It's actually easier, now. The government, by way of Fannie Mae, has opened the market to first-time homebuyers and those with poor credit or no credit. You will probably not get the lowest rates available, but will get a fair deal. Most lenders will allow you to pre-qualify so that you will know how much money you qualify for, giving you a price range, which will narrow your search. The thing about financing a house is, if you don't pay the note - the bank gets the house. It's not like you can pick it up and move it. It's a stationary asset with little risk of loss, barring damage caused by neglect, purposeful destruction or fire. Make sure you pay off those outstanding bills first, though.

Answer 4

For Finance and credit solutions I visit this site where you can find all the solutions. http://INSURANCEANDFINANCETIPS.INFO/index.html?src=BTYrfz47DVR

RE :My credit score is poor, non-prime & I want to buy a home. Any lending agencies that will work with me? Ideas?
Trans Union score is 526 Very Poor (the worst rating)
Experian score is 658 Non-Prime (the worst is High Risk)

I make good money now and most everything has been paid off or will be in a couple months. My bankruptsy due to ex's business venture failing comes off in December. Thanks for any help!!
Follow 11 answers

Answer 5

Go to a mortgage broker. They usually work with between 20-30 different mortgage lenders. you can probably get a loan, but because of your credit score, you will be paying a high interest rate.

You should not rush into getting a mortgage ASAP. Take a year to pay off all your debts and to save for a down payment. The extra time will also help you to build up a better credit score.

Good Luck!

Answer 6

Don't be in a hurry to jump into a house contract. Save up a bigger down payment and that really helps. More than once, I have been self employed (bad) and had poor income (bad) and the banks would still talk with me because I had 25% down. It gives them a really good leverage on the house and their position is covered. You might also consider getting yourself prequalified at the lender, for the amount they will loan you, then go to auctions, like forclosures, etc. and you get the house much below market, buy it, do a little fixing and you are in. You might also just ask the bank direct if they have any houses that they have foreclosed on they want to get rid of. If they do, they might want to make you a good deal...if you have a down payment. Not all of them will talk with you, buy you only need one.

Answer 7

Lenders look at the middle score. if your middle score is like your experian score you will have no trouble getting a loan. Most lenders like myself pull a tri-merge report. Your missing Equifax.

If you have questions about your credit score check out this website: http://www.firstmeridiancapital.com/GettingYourCreditReport , there's a link to receiving your free credit report.

If your in need of a Home Loan Consultant give me a call Frank 909-489-4692

Meridian Capital Mortgage

Answer 8

Go to your Library and get this book.
How to buy a home with no or poor credit
by Thomas K Masters

It will be a big help for you and good luck!

Answer 9

I am not sure of any that would.. its not that bad actually your score .. yes it is low but there has been worse I have seen. Why don't you try to finish paying off what you owe and wait a few months and make your payments on time and try to start applying?? Most of the time if you go to a real estate agency they will try their best to get you approved.

Answer 10

You don't need a bank!

Check the classifieds. There are many owner-financing options available where the seller would take back a note. You'll also see plenty of lease-option opportunities for people exactly in your situation.