Where can I get a mortagage loan with credit score 500-550?

Question

I want to get a loan for a first time home, but my credit is poor.
Who will approve me for this?

Answer 1

east west will approve anyone. Your rates will be aweful though.

I would strongly recommend waiting a year until your score is better. The market may get better too as prices are dropping. Rates shouldn;t get much higher and may actually go down a bit in the next year. A 550 right now would get you a loan at about 9 or 9.5 %.

Waiting a year, your score could go up to 600 or so and with a small decrease in rates, your rates may drop to 8%. On a 300,000 dollar house that is about $400 a month.

BP

Answer 2

Well, depending on who gave you the score it could possibly be a little higher than that. Besides the mortgage company will choose the middle of all three scores.

A company that I used and that was real easy to work with was Pennacle Financial [phone] ask for Katherine Garcia. She is real nice and will run the numbers for you and if you don't qualify she will let you know what you need to do. Pennacle will resale the loan and your interest rate will not be lowest but that's just the way it is when your score is low. It's better than nothing until you can get your score back up and then refinance in 3 yrs (saying 3 because you'll probably get into a loan w/ a pre-pay penalty).

Then if that doesn't work there is this company called 2nd Chance Financial. They help clean up your credit report. They are good! It will cost you about $1000 but you can make payments and getting lower interest rates will save you a lot more than that in the long run. Everything they do can be done by you but can't we all do everything if we have the time. [phone] ask for Karen Molina

Answer 3

If you have 10% to put down, you shouldn't have a problem getting a loan, even if your score were lower. If your home is $150,000, be prepared to give $15,000 down or look for a cheaper house. Most creditors will work with you on a home loan with bad credit, you just have to have some ca$h to work with.

Lending Tree is good and reputable. I once applied for a car loan through them and was Fedexed overnight an $18,000 check to be cashed by a car dealer of my choice. They are not actually the loan company, they are a referral service and do a good job. Plus, it will be one credit inquiry.

Answer 4

Sounds like you really don't need a loan, you need to save up a good down payment (at least 20%) after paying off all your other debt or you will be worse off then you are now.

You have a bad credit score because you made bad decisions. Unless you correct you decision making process your going to end up like everyone else asking questions in the category.

Answer 5

Unless you have a 10-20% down payment saved, your best bet is to look for something that you can buy on a "rent to own" or "land contract" or "lease option".

Pay on that for a year, save every one of your checks, then you should have no problem qualifying for a loan to buy that house.

You will need to talk to a mortgage broker, not a bank because these types of programs are considered "non-conforming".

Answer 6

Dear Blondee:

Assuming you live in the US, you may want to consider an FHA loan. They are not credit score driven. However, you'll need at least 3% down and may need to cover closing costs.Those will depend on your mortgage amount and there may be downpayment assistance programs available. You'll also need to abide by strict debt to income ratios. For more information, please check out my website: annepalmerhomeloans.com

I have spent a lot of time helping first time homebuyers with less than perfect credit scores and minimal downpayments. It is possible! Please e-mail me with any questions: [e-mail] .
Sincerely,

Anne Palmer

Answer 7

Yes! I did it with a credit score of 550. Got a 117,000 loan. It really depends on where you are trying to get a loan. (What state), And more interest rate was pretty good. 6.375%

Answer 8

With that low a credit score, you'll be lucky to get a loan for a cup of coffee. Wait at least a year.

Answer 9

Work on fixing your credit score, meanwhile see if you can get a roomate to help with bills while you save up money for a down payment. When you're finished paying off debt, use that monthly payment and add it to your down payment savings.

Answer 10

if you really want the mortgage, you will probably get one, but your interest rate will be high and you will need min. 10% down payment and be prepare to write a lot of explanations letters for your credit. you will need to find non conforming lender and if you are first home buyer they will ask you for verification of rent from management company or 12 cancelled rent checks.go to the mortgage company, they will know witch lender will approve you.