how can a person get a home mortgage with a low credit score get a100% finance and 0 down?

Question

my father has never owned anything and this will be his first time purchasing a home but he is having problems because he has no credit just minor medical collections and we really want him to stop paying rent and start paying his own house,he already raise his children i think is time for him to get something back.

Answer 1

Have spend a year cleaning up his credit first. The interest rate he would have to pay would be really high and make it harder for him to get it straightened out.

The alternative would be for you to co-sign with him on property.

Answer 2

You can build up tradelines and get reference letters from electric/utilities, car insurance, cell phone, items that do not appear on your credit report. I know of lenders that will give 100% financing without a credit score but obviously you need some compensating factors.



Just remember, you are most likely not going down in payment when going from renting to owning. I would speak with a mortgage broker and see what can be done for your father.

Answer 3

I have to ask. How is this his way of "getting something back?"

Is this going to be a financial burden on him? The mortgage is just the start of the expenses in home ownership. Not to mention the yard work and other maintenance chores that he will now be faced with.

How old is he? Will he ever have the ability to sell the house and actually profit from it? Or would his money be better if it weren't tied up where he could use it?

Answer 4

Not necessarily a raw deal. Payment of points buys down the interest rate, not the payment of a loan origination fee. Unfortunately, the loan origination fee is either because 1) you utilized the services of a broker who arranged the loan through another lender, or 2) you "just didn't know" that this was negotiable. The origination fee is for just that . . . originating the loan; i.e., causing the loan to happen. With your numbers, I'd contact the loan officer and ask for a reimbursement of this amount, if they wish for any referrals from you - and, since most people have friends who are similarly situated, they should want your referrals. Good luck!

Answer 5

Maybe if he is a veteran there may be some program that he could tap into but other than that I don't think you will find anyone willing to give you a mortgage under those circumstances. There is not enough history or collateral and he really needs to have a down payment.

Answer 6

If he has zero credit scores, then he can go FHA. They will need 3 alternative lines of credit (car insurance, cell phone bill, heating, gas, electricity) with a 12 month history and of course a solid rental history. Assuming his income supports it, he should be able to get qualified this way.

Answer 7

You can't. You either have to have a good credit score or money down. The lowest they go down to 100% financing is a 580 score. Lower than that he will need money down.

Answer 8

Hi ,

If you provide me the details of your case along with the state and location etc then i might be able to find you a good lender .Normally , the rates are now in the higher fives and lower sixes .
Provide the case details to [e-mail]
or call at 480.751.4125 ...
regards...
kish

Answer 9

He'd have to go to a credit consultant but the interest late will be real high.

Answer 10

Have him talk to a trusted, experienced Loan Officer to help with a game plan. don't have one? talk with friends and family to see who they trust.