So I have this friend.... She wants to buy a house.?

Question

Her credit is not the best, maybe just under bad. She has a good work history, good rental history, good income. How can I get her pointed in the right direction. She applied to a mortgage place a few months ago and they just sent her her credit report. Well I didn't think that was a good sign. So she got online and fixed a couple of things. What can she do? She got a realator and he just emailed her so much, but made no steps or suggestions to get her pre approved. What does a person do?
Thank you for your time, I know this is not a quick one!
G

Answer 1

Well Tell your friend not to feel bad, there are plenty of people in similar situations as her. The great news is she may still be able to qualify for a mortgage. She can log onto http://www.justgetaloan.net and get assistance with getting approved. Repairing her credit was a good step, now its our job to get her approved. We pride ourself in assisting clients with less than perfect credit find competitive low rate loan programs. Also you may have her contact me at 866 530 7300 ext 7305 or by email at [e-mail]

Answer 2

You don't say why your friend has a bad credit report. Assume it's because of late payments or too much credit. She may have to wait a couple of years and religiously pay her debt down on time. She did right to fix any errors and she should continue to order and review her reports quarterly to see if her rating is improving.

I wouldn't hesitate to take the credit report to a loan officer or mortgage broker and ask him or her what are the alarm bells that would keep your friend from getting a loan.

There are loans available for people who have "B" or "C" level credit. They have a higher interest rate but can be renegotiated after a year or so of reliable payments. Ask the realtor to recommend some mortgage brokers to talk with. Many hungry brokers will be able to find your friend a loan - if not right away, then ultimately.

Another idea might be for your friend to find a "lease to own" type of property. These haven't been available for awhile but due to an increasing "buyers market" they may be coming back. In that way, she can prove her worth to the seller by consistently making rent payments. Usually a part of these payments will apply to purchasing the house. These properties may not be the best in the world (usually there is a reason why a house won't sell outright) but it's a place to start. Sometimes sellers are willing to "float the note."

Good luck.

Answer 3

All your friends credit score will do is determine her interest rate and limit the type of mortgage she will qualify for. The quickest way to build good credit is concentrate on current accounts, they weigh more heavily on your score than older accounts.

I would recommend that she get with a good adviser and lay out a life plan that covers not just mortgages but all her financial goals and assets. They can help put her on track a gives some things to concentrate on so that she would be less likely to wander off on a detrimental course.

Answer 4

She needs first to find out what her actual scores are, and then once she knows, talk to a creative mortgage broker. Assuming she has enough income to support payment, then as long as her FICO is above 500 she can find a loan no problem and anyone telling her otherwise doesn't know what they are talking about. The loan may be expensive (higher interest rate) but there are plenty of programs lending on 500 FICOs. She may also find her credit is not that bad. Knowing the FICO would be important here.

Answer 5

Hi!

I am a mortgage loan consultant. I can give you a free no obligation prequalification on how much you can qualify up to. I am a loan consultant in ohio. Been in the business 3 years and of course licensed by the state. I can do government loans for first time homebuyers with really low fixed rates and 100% financing. I can also do 100% financing on conventional loans and non conforming. Ask your realtor about seller consessions too, you can use up to 6% seller connsessions on our programs as well. Call me for a free no obligation quote on how much you can afford and rate. 888-526-5001 ext 772 toll free or if you are local to ohio reach me direct at 440-832-7772. Thank You for your time and good luck! Lindsey!!!

Answer 6

Your friend is in a position many people are in. As a loan officer, it sounds to me like the only issue on the loan is her credit. Some lenders just do not have programs available for people with credit issues. With a 580 credit score, she can do 100% financing. With a 500 credit score, she will need a 10% down payment.

If her credit score is lower than 580, here a couple of easy things she can do to help boost her score. First, open a couple of secure credit cards. You can get a secure credit card from some of the major banks.

Second, pay down open account balances to one third of the account limit. Your credit score measures the ratio of the outstanding balance to the credit limit. Pay open accounts down to one third of the balance. If she cannot pay them down to one third, pay them down as much as possible. Make sure to pay down any account balance that is over the credit limit.

Third, make sure all credit cards are reporting your credit limit. If your credit limit does not appear on your credit report, it will effect the credit score. I have seen people do a few small things and have their credit score go up significantly in a short amount of time. If you have any questions, just let me know. I hope this helps.

Answer 7

I don't recommend that bad credit buyers get into properties, as there are many predatory lenders that will take advantage of them and charge crazy points and interest.

My suggestion is to fix the credit first, then try to get qualified again.

The folks at Creditboards.com have great systems to repair your credit, and can get her score back in year or so. And they're a free community, so you won't get hit with fees or anything. Just advice!

Answer 8

Well it sounds to me like your friend will need help with her finances so give her these links from our research department and tell her to research them and then talk to her realtor about what he or she can do with the programs she chooses. If he or she won't help her tell her to get another licensee.
FHA Federal Housing Administration loan programs: http://www.fha.com/
FHA Rural Housing loan programs: http://www.rurdev.usda.gov/rhs/common/indiv_intro.htm
US Government Housing assistance grants all areas:
http://12.46.245.173/pls/portal30/catalo...
US Government Grants page: http://www.grants.gov/
US Federal Domestic Assistance catalog for all Federal Programs available to State & Local Governments & the Public
http://12.46.245.173/cfda/cfda.html
All government Benefit Programs http://www.govbenefits.gov/govbenefits_en.portal
Department of Veteran Affairs – Home buying programs for Veterans:
http://www.homeloans.va.gov/veteran.htm
Federal Reserve, pamphlet on acquiring the best mortgage: http://www.federalreserve.gov/pubs/mortgage/mortb_1.htm
US GOVERNMENT CONSUMER TIPS ON HOMES: http://www.consumer.gov/yourhome.htm
Low Income Home Purchase Assistance (Private): http://www.nehemiahcorp.org/
AFFORDABLE HOUSING CONTACT LIST FROM REALTOR.COM US GOVERNMENT AND ALL STATES: http://www.homefair.com/homefair/servlet/ActionServlet?pid=187&art=contlist&cid=homefair
Low income housing assistance (private) Habitat for Humanity: http://www.habitat.org/
And there are more but that should do and give her direction.
Buena Suerte

Answer 9

In order to get a mortage her credit score has to be at least 620 she'll need to pay off old bills & work her way to buying her house it took me a year now I got my home.Good Luck

Answer 10

She should first position the credit profile to represent the best possible qualifying status. That will open more doors and better financing.

Here is some additional info. Hope this helps.