mines not much better but on our next mortgage i would like my fiancee to be on it, of course the rate will be high and money will need to be put down but whats the average mortgage amount that people with scores of 590 and 630 with an income of only 75,000 can get?we just bought a piece of property which i heard is good cause it can be used as a down payment PLUS when we sell our current house we should have an additional 15,000 to put down also...this helps right? im just looking for a ballpark figure to give us an idea.
2006-11-29 07:44:38 · 10 answers · asked by toolate 3 in Business & Finance ➔ Renting & Real Estate
yes the property is BOUGHT we owe nothing on it...and we are going to build so we would need a construction loan (i think thats what its called)
2006-11-29 08:38:55 · update #1
yes, there are a few options you have with a credit score like that. Also, depending on the price of the house you would like to buy, the interest rates can be fair, in the range of 6.25%~7.5% if you decided to go with an FHA loan. If your debt is high, then you might be looking at a sub-prime loan where the interest rates begin in at about 8.5%+. any questions, you can email me
2006-11-29 07:49:45 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You're going to need to take a reasoned approach to this. With your credit scores you're well down into 'B' or even 'C' paper territory. The resultant interest rates are going to leave you with a crushing debt to pay off. If you can rent for less $$$ per month it would make much more sense to rent for a couple more years and work on bringing those credit scores back up and save towards a down payment and closing costs. You really want to get those scores up at least another 100 points to be looking at anything close to reasonable rates. Run the numbers with the programs that you're eligible for and compare that to your current housing cost as renters. If your monthly costs are comparable to what you're paying now it might be worth going for it. But keep in mind that homeowners insurance in FL is EXTREMELY expensive so be SURE to get quotes on that and figure that into your monthly costs as well. If you don't, you may be in for an nasty surprise at closing when you find out that your monthly cost is going to be double what you were expecting. FYI, multiple credit inquiries for the same type of loan product over a short period of time are scored as a single inquiry. Applying through several lenders will not affect your credit score any more than a single application would. That said, no lender needs to pull your credit to give you a good estimate of what you'll qualify for if you know your score and already have a copy of your credit report. They will have to pull it to finalize the deal but if you've been honest with them there won't be any difference other than the usual market fluctuations.
2016-05-23 02:44:08 · answer #2 · answered by ? 4 · 0⤊ 0⤋
With those scores, you should be able to get good financing. FHA would work, possibly even a conventional Fannie Mae loan too, especially with a decent down payment.
A good loan officer will try a few things, such as putting more money down, or leaving $10K in the bank for reserves, and see what happens.
Bottom line, you shouldn't have to get a high rate. You should be able to get a 30 year fixed rate loan under 7.00% with those scores and down payment. Anyone pushing a 2 year fixed ARM (2/28 is the typical name), find another loan officer.
2006-11-29 08:17:42 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If you can put down 20% of the home's value a mortage company will give you anything!!!!! Generally though if your credit score is low expect them to ask for more to insure themselves.
One other thing is that don't go for these new mortgage programs (upside down mortgage) they are like interest only mortgages on steroids. Every time you make a payment the principle goes up....
2006-11-29 07:46:44 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Yes, there are many programs that she can qualify for. They are generally going to have a higher iterest rate than those with better credit. My suggestion is that she take steps to raise her credit. 620 is one major cutoff line lenders use. 40 points can easily be gained in six months, and this will save you thousands in interest.
The amount you qualify for will depend more on your current expenditures than your credit. All of your bills plus the amount you will be paying on the home will need to be less than 40% of your before tax income.
If this is the case, you will be able to qualify for a 350k - 400k mortgage. That will probably stretch you, so I suggest going a little lower.
2006-11-29 07:56:33 · answer #5 · answered by Ron B 3 · 0⤊ 0⤋
You can still get a mortgage but as you know the interest rate would be high and yes you do have to put a down payment.
2006-11-29 07:46:43 · answer #6 · answered by Maji 3 · 0⤊ 0⤋
It is my understanding that a score of 580 and 630 is not POOR credit. It is considered GOOD or FAIR.(not the best mind you) but it certainly is not poor credit. There are many companies that will deal with you. Use the internet and compare compare compare ...you will find the best rate for you. Best wishes to you. I hope you find the home of your dreams.
2006-11-29 08:27:05 · answer #7 · answered by missylou 2 · 0⤊ 0⤋
You should structure your profile for success by managing credit scores (they can be improved quickly of you know what to look for), establish what you will be approved for, and know what is negotiable because this is where you can be frugal.
Here is some additional info. Hope this helps.
2006-11-29 08:04:10 · answer #8 · answered by Anonymous · 0⤊ 0⤋
with a generous down payment--yes.....
and bought?
does that mean paid for outright?
not paying monthly payments?
your best bet...
talk to leading reality in the area....
get the straight facts..............
2006-11-29 08:27:18 · answer #9 · answered by cork 7 · 0⤊ 0⤋
i did. my credit sux. shop around.
2006-11-29 07:51:56 · answer #10 · answered by practicalwizard 6 · 0⤊ 0⤋