Home loan for first time home buyer 560 credit score and very low money down?

Question

Please answer the question and don't tell me to wait a year and all this other things. My problems was in the past and it has just stuck with me. Stupid credit cards and things like that nothing major. I paid my car off I haven't been late on 900 a month rent in 3 years I've been renting. I need a house. Who should I go to for help. What companys or agencies offer help for people like me. Thanks alot.

Answer 1

With a 560 credit score, I could do financing up to 95% of the purchase price. This means you would be coming in with the 5% down (but depending on your area - county and income - you may qualify for a down payment assistance program). Your rental history being current is really good, that will help you qualify for a better rate. In the meantime, I would suggest you opt out of pre-screened offers (this improves my buyers credit scores in less than 60 days). It's free and only takes a few minutes. Opt Out Electronically for 5 years:
https://www.optoutprescreen.com/?rf=t
You are considered less of a credit risk to other lenders because you don't want to receive those pre-approved offers, etc.

Answer 2

Get out your phone book and look up mortgage brokers who have ads that say, "Challenged Credit" or something similar.

At 560 you can PROBABLY get a loan-- but it will be an 80/20 (two loans for one house) with HIGH rates (probably equal about 8-10%) and a prepayment penalty-- you have to pay THOUSANDS if you refinance within a 0-5 year period.

Every 20 points or so you can get your MIDDLE SCORE up, you'll move into a better loan bracket. A good mortgage broker can tell you what to do to get that improved-- and often times they are QUICK fixes-- pay down a balance on a card to below 35% and you might get quite a few points added.


Also-- pull your credit reports. DISPUTE EVERY BAD ITEM. Even legitimate stuff can be removed!!! I went from 6 collection accounts to ONE. I had 4 accounts with one or more late pays-- and now i only have one. They were all 'correct' but I'd been doing well and payig everything and the companies just didn't disagree with my disputes. I jumped almost 100 points and have been doing reallyw ell for a long time-- and just got a mortgage with the best available rates.

Give yourself 60 days to do the disputes. If you order your reports online you can dispute them online and get the results within 30 days-- and hten dispute any bad ones again that didn't get deleted. I got mine thru www.Truecredit.com becuase I can get all 3 bureaus reports for $14.99 a month-- AND i can renew the reports daily.

Answer 3

a 680 credit score will qualify you for 100% financing with most companies. Check with your local bank or a mortgage broker. Most likely they will give you and "80/20" which means you'll have 2 loans, one at 80% of the purchase price, the other at 20% of the purchase price. Most often, the seller will concede a portion of the sales price towards closing costs to help with "no money down." However, you still need to come up with an earnest money deposit of $500-$1000 once a purchase agreement is reached. You friend's loan is a "Pay Option ARM." The payment rate is 1%, though the interest rate is higher. That particular loan is not offered at 100%. You'd have to have at least 5% down to qualify for that loan. Good Luck!

Answer 4

yes u can purchase a home it is possible like some one said u might have to get two loans, (thats what i have and its not bad) u need to find a good mortage broker company, that will be willing to help u. i guess the phone book would be a good place to start. dont let them check ur credit everytime as it goes down everytime its checked. u may ask for ur credit copy.

Answer 5

try a little known company called NACA - www.naca.com
they will fix your credit score and give you debt counseling for free and then fix with up with a little or nothing down loan with a really good rate. I've heard about them from a few friends, I don't know if it's available in your area, but it's worth a try! Good luck :)

Answer 6

While your credit score is pretty low, Im sure you can find someone to help....


Go to www.lendingtree.com

You put all your info in & at least 5 banks will contact you with what they can do for you. Then you pick who you would like. I have a friend who was in a similar situation & she was able to get a loan like that.


GOOD LUCK!

Answer 7

Pretty sure that you must find all financial answer at= loandirectory.info-

RE Home loan for first time home buyer 560 credit score and very low money down?

Please answer the question and don't tell me to wait a year and all this other things. My problems was in the past and it has just stuck with me. Stupid credit cards and things like that nothing major. I paid my car off I haven't been late on 900 a month rent in 3 years I've been renting. I need a house. Who should I go to for help. What companys or agencies offer help for people like me. Thanks alot.

Answer 8

You are going to pay KILLER INTEREST on any mortgage you MIGHT be able to get. My advice is to read Dave Ramsey's book The Total Money Makeover. www.daveramsey.com

Good Luck

Answer 9

sure you can .The interest rates will be in the higher fives and lower sixes .write to me at [e-mail] and i will provide you the detailed information.

regards,
kish