Can I get a home loan with a score of 570?

Answer 1

Yes you can get one - ok - You would be going sub-prime - so the lenders you need are thru a Broker. Why a Broker? 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. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.

A 100 percent loan - is not totally out of your reach - There are FHA programs, payment assistant programs to help you. Look at your middle credit score, Is your 570 the middle score? if you do not know the rest of your credit score's - have your lender tell you, or pull your credit from the 3 credit reporting agencies - BUT the person you are working with should tell YOU.

Lenders look at your middle score, to qualify a person - and if your credit is low, than you will be going SUB-Prime, and any amount over 80 percent does not have MI - There are alot of companies I underwrite for that does NOT charge MI - normally the rate is slightly higher. Say you got qualified and your rate was 8.50 at par (Par, means that is what rate the lender quotes you, with no addon's to the rate for the lender to make pts on the back - some Lo"s add pts on the rate to make their money - instead of charging it up front). The 8.50 does not have MI included. This is a estimate only - ok -

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, Rental history for 2 years is looked at. What collections & judgements are on your credit report. Some collections may not have to be paid off. Judgements may need to be paid off - depends on the Lender and Their Underwriter. 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.

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

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 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far??

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). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out.

Go to these websites:
1. http://www.nehemiahcorp.org/

http://www.fanniemaefoundation.org/...

http://www.fha-home-loans.com/

http://www.freddiemac.com/

The above have First Time Home Buyer Guides on their sites.

Also try this site:

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Welcome to the USDA Income and Property Eligibility Site
2. This site is used to determine eligibility for certain USDA home loan programs. In order to be eligible for many USDA loans, household income must meet certain guidelines. Also, the home to be purchased must be located in an eligible rural area as defined by USDA.
To learn more about a USDA home loan program, click on the Loan Program Basics link on the left side of this screen and select one of USDA's home loan programs.
To determine if a property is located in an eligible rural area, click on the Property Eligibility link on the left side of the screen and select a Rural Development program. When you select a Rural Development program, you will be directed to the appropriate property eligibility screen for the Rural Development loan program you selected.
To determine income eligibility of an applicant/household, click on the Income Eligibility link on the left side of the screen and select a Rural Development program. When you select a Rural Development program, you will be directed to the appropriate income eligibility screen for the Rural Development loan program you selected.
To find out how to apply for a Rural Development Loan, click on the Contact Us link on the left side of the screen and then select a Rural Development Loan program.

Answer 2

It's going to be tough. The score most lenders look for is 640....that's about the minimum for a "good loan." A score closer to 600 is ok, but you'll pay more interest, and more points. I've heard of people getting loans below 600, but it's an uphill battle. Your best bet is to use your money to FIX YOUR CREDIT! It may take a while, but it's the best thing a person can do IF they ever want to own a home. Usually, the negative items on the report are small, old debts. Pay them off, but MAKE SURE you get the people you owe to GIVE YOU A LETTER in exchange for the money. The letter should say....."Mr. Soandso's credit report has mistakenly shown a debt that has been paid in full. Please remove this item on his behalf..." or something like that. Good luck!

Answer 3

Yes you can to 100%. Yes your rate will be high and yes you will have a short term loan with a prepayment penalty. But this is because you have bad credit.

Things to watch out for?
Dont pay more than 2pts max to originate the loan. Yes there are people that will charge you more stating its harder to get you these loans. These people just dont know the right lender.

If you have good income and good DTI (debt to income) than you can get possible 100% financing with little down. Buyers market again so make the seller pay the closing costs.

Answer 4

Yes you can. You would have to apply for a sub-prime loan. A mortgage broker would be the best person to help you with this. It won't come cheap, these types of loans are more expensive than a regular loan, simply because they are riskier.

Answer 5

Yes you can. Whomever said that you'd have to pay 18-20% is nuts.
You will pay more than average but it'll range from 7.5-10.55%.
Your bets bet might be to get a low 2 year mortgage and fix your credit in the meantime.
Then re fi when your credit is better.

Answer 6

Yes, but at a really high interest rate.
You are in a 'Risk" category to lenders. The rate will probably be somewhere between 18-20-plus percent.

Answer 7

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Answer 8

It can be done don't be discouraged. I work with over 250 banks I can get you help if you need it... let me know Mortgage Specialist.

Answer 9

You'll be lucky to get a refrigerator box with a cutout window...