no money down home mortgages for low credit scores?

Question

we are looking to finally purchase a home. but we have no money to put down.. our credit score isnt severe its between 530-575 .. but how do we find a mortgage loaner in our area that will help.. we live in southwest florida and prices are still a little high on a 4-5 bedroom (what we need 3 kids and mil)

Answer 1

I have a 560 full doc 100% purchase

Matt

http://www.diversifiedlender.com/

Answer 2

Take a deep breath...and do nothing. Housing prices are dropping, so there's no need to feel like you're missing something. You don't want to face the outrageous fees/costs of the kind of mortgage you're talking about. Save at least 5 % as a down payment over tthe next year or so (cut back, take a second job if you need to, but the money can be saved) - with 5% you can get a conventional mortgage...then, whatever you do, don't let them sell you an ARM with a low introductory rate the starts to fly down the road...get a 30 yr fixed..... Buying a home isn't a quick and easy thing like buying a TV - it's probably the biggest investment you'll ever make...don't go into it from a position of weakness....save your money, find a place that you can afford, then buy it.

Answer 3

Nobody does 100% financing below 560 credit score, and few below 580, even if you can prove you make enough to justify it.

Your options are

1) Improve your credit score: always a good idea
2) Save up a down payment: ditto
3) Get a seller carryback for the difference. I don't know any of the Florida markets, but here in San Diego this is pretty easy right now, even though you can get a better price and have more selection without.

Right now the sellers here are desperate, at least locally. For prospective buyers, the time is *NOW*. Once more people figure this out, the ratio of sellers to buyers will drop and your bargaining power will be diminshed. Of course, this doesn't apply to markets that are still going up rapidly. Talk to a good buyer's agent in your area (also always a good idea).

Answer 4

Lender will give you money for sure. Probably charge you a higher interests rate and extra insurance on the loan for not having the down payment or good credit.

Would you consider delaying your plan? Professional investors are careful in choosing each investment that would be near or immediately cash flow positive. With overpriced housing market, that is not possbile.

For example, it costs $500,000 to $550,000 to buy a two bedroom units in Sunnyvale California. Mortgage monthly payment with nothing down is $3500 to $4000 a month with 7% APR. The rent one can collect from such unit would be $2000 a month. Therefore, for each unit you buy, you would lose $1500 a month.

* We assume tax benefits would cancel out with tax and maintenance fee. Please consult your CPA.
**If you have large down payement, the rate may be lowered.

Another important factor to consider, home price may not appreciate as much anymore. In most area of the U.S., housing price stopped going up as inventory continues to build up. It is normal to see a correction as a boom that lasted for several years.

If you are investing new money in to real estate, this may not be a good time as the potential return on investment is small compare to the high risk of lower home price.

If you are doing a side way move, meaning you are selling one to buy another one, then it is acceptable.

Nothing is absolute, but housing market is very likely undergoing a correction and this is only the beginning. Some say this would be a soft landing (0 to 10%). Some say a big crashing is coming (10 to 20%).

http://money.cnn.com/2006/09/08/real_estate/caught_in_the_bubble/index.htm?postversion=2006090814
http://money.cnn.com/2006/09/05/real_estate/Ofheo_home_prices/index.htm?postversion=2006090514

Answer 5

Contact a Mortgage Broker (not an individual bank)
They will run your credit once and check with many different lenders to see if it possible. They will tell you what you need to do to get approved if you can't.

With a score that low, it isn't very likely that you will get one for no money down. And the interest is probably going to be very high as well.
My score was 649 and I still had to put a 10% down payment on our house.

You could look into any owner financing options(Contract for deed) in your area. That is how we bought our last house. The previous owner carried the note and we paid them.
Too bad you are not in Alabama, we are selling our 6 bedroom on land contract.

Good Luck to you.

Answer 6

You should try to raise your credit score and save a down payment. There are people who will say they can get you a loan but most of them will scam you out of money and get you nothing. FHA has loans available but you have to have a score of at least 580. Save money and pay off bills then try to buy a home.

Answer 7

You will need at least a 580 to possibly get 100% financing. If you would like I can look at your information. Please contact me at [e-mail]

Thanks