I am trying to buy a house and I only have 2 credit scores. I have 0 score with Experian.?

Question

What can I do to create a 3rd score. Or does anybody know a Morgage company that will take 2. I am a 1st time buyer. I have a real good job,make good money. But i had some problems in the past (3years ago). I have a 514 and 589.

Answer 1

You will need a subprime mortgage lender. Usually any loan under a 620-620 will require a subprime lender.

But you are in luck, most subprime lenders will take 1 or 2 credit scores. They do not always need all 3 scores. Some will average your scores, others will take the lowest of the 2 if only 2 are available. If 3 are available they will take the middle ranking score.

If you do not have a score with a lender, either no credit that you currently have is being reported to them, or they do not have enough info to give you a score, or you do not rank in their scoring boundaries (350-850)

To increase your score, the easiest way without hurting your credit is to go to a local bank and open a "secured credit card" this will require a deposit - usually 100.00 minmum. Whatever your deposit is that is your credit limit. They will report on time payments to the credit bureaus but they will not pull your credit to see if you "qualify" for the credit card.

Also, even though your scores are lower, we have helped people get 100% loans with as low as a 550 Credit Score. Most subprime lenders will loan all the way down to a 500 Fico.

Check out www.dreamloanusa.com for more info about loans and credit!

Good Luck!

Answer 2

If a borrower has only 2 scores, most lenders simply take the lower of the two scores.

As you have a 514, you must have had some judgements, collection accounts, etc. Have you recently paid those off? If not, and those amounts put a drag on your debt-to-income ratio calculation, you might not be able to get a loan (or at least have a very difficult time), even if your score was 600+.

Also, with a 514 you should expect to make a significant down payment. I'm too far removed from having been a loan officer to give an exact %, but it's probably 20%.

Answer 3

Without the third score issue, 514 and 589 are very low. a 580 MIDDLE score is required by most lenders. You can speak with a mortgage broker, who knows lots of options, but you'll get a bad rate.

Write a letter to Experian, in the mean time, informing them of all the accounts that they dont have on file.

Answer 4

If you had two credit scores EVERY lender is going to take that third credit score of zero and rate it at 500 Fair Issac. Then they're going to omit the highest and the lowest scores you have and use that middle one for underwriting purposes.

And in most circumstances you'll need a score above 580 to even qualify for traditional [Subprime] financing.

Hope that helps

Malcolm Campbell
Chief Executive Officer
Campbell Technology Group Inc.

Campbell Technology Group
"Technology Based, Innovation Driven"
http://www.campbelltechnologygroup.com

Answer 5

Your scores seem to low for 100% financing. Contact a local professional mortage broker for assistance. Might want to ask your friends for a good one.

Also, if your in the Los Angeles area, let me know for a referral.

Sincerely,

Richard M. Johnston, GRI, ABR, e-Pro
RE/MAX OTB ESTATES
President's Advisory Council Member

Answer 6

I specialise in Subprime & No FICO clients. If you are in California, contact me & I can be of assistance. I work for a DIRECT Lender, not a Mortgage Broker. The advantage to that? Lower rates, Lower payments & LOWER FEES!

Our website is www.LoanApproval.com but please do NOT submit your application there, as it will go to the corporate office.

Instead, give me a call directly, [phone] is my direct line.

- Mike Noga
Chief of Staff
First Fidelity Funding

Answer 7

Contact Experian to find out why you do not have a score. There must be a reason for it. They may be able to tell you what you need to do in order to get things corrected.

Answer 8

i did not see your first question and had to pass in seek of it. First, pay off any modern-day credits taking part in cards. a huge area of your score is the ratio of credits card debt to obtainable credits cut back. donning balances of greater suitable than 30% hurts your score. Pay down the balances and you get a rapid advance. 2d, derogatory products age off your credits record 7-one million/2 years from the date of first deficiency. The older the article, the fewer effect on your score. If something on your data is previous that 7 365 days reporting era, dispute it with the credits bureaus. you will possibly even attempt to dispute any derogatory that's over 6 years previous just to verify if it would get bumped off. third, paying off previous debt won't help your score until you get the article deleted. Your terrific wager is to artwork on unmarried get entry to products like cellular telephone, application, and scientific costs. issues that basically happen on your credits record while they pass to the series enterprise. you could negotiate a pay for delete which will help your score. start up with the latest merchandise and artwork back to the oldest. If the debt is over 3 years previous, grant 25%; 2 or 3 years previous, grant 50%; below 2 years previous, grant seventy 5%. Lump sum gets the terrific deals. charge plans could be short. Get any settlement settlement in writing and shop it, alongside including your information of charge, continuously. do not provide the series enterprise direct get entry to on your economic enterprise account. you could have issues getting a loan. they seem at a brilliant number of alternative factors besides your score. a brilliant number of derogatory products exhibiting up on your record could properly be a huge concern and that they could insist which you agree all derogatory products in the previous you're authorized for a loan. Be arranged to could negotiate settlement on all derogatory products. yet wait to verify if the insist on it. Paying off derogatory products which at the instant are not deleted (and you are going to be able to't get many times reported products like credits taking part in cards or different installment loans thoroughly deleted) will surely decrease your score. previous stuff has much less effect on your score. A charge might make the debt "modern-day" and might count variety greater on your score calculation, which contains all the unfavorable area.

Answer 9

I work for a Mortgage Company.
Aegis Lending if you are interested. They have offices all over the US.

http://www.aegislending.com