My credit score is 452 and my fiance's is 512. I know they're really low but does anyone know how to truly get them up fast or know of a bad credit option mortgage?!?!
2007-01-08 07:51:48 · 13 answers · asked by amanda_m_jordan 1 in Business & Finance ➔ Renting & Real Estate
Go to Lendingtree.com as they scout mortgages for you and give you options.
Things you can do to improve your score is to pay off all revolving debts, close unused or unnecessary accounts, get a secure line of credit and use that to build up your score.
2007-01-08 07:55:28 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Here is an honest answer: With scores that low, any mortgage you qualify for will have EXTREMELY high rates. Sure, someone will probably claim they can do it, but you will probably end up digging yourself a deeper hole than you have now - you are a first time homebuyer and for scores to be that low, you must have some pretty serious debt problems. Do you really think it is best to buy a home that will include a mortgage payment, home insurance payment, utilities, property tax, and repair costs?
There is NOTHING that will raise your scores to an acceptable level quickly. Do not get roped into any "debt repair or debt clearing" services - most are scams, and the very few reputable ones do not work instantly.
You and your fiance should make sure to make timely payments on all your current accounts, pay each balance to below 30%, do NOT cancel accounts, and do not apply for any new loans.
So, bottom line: take some time to raise your score and get in a stable financial situation. You will find another "perfect property" and your chances of foreclosure will go way down.
For general and detailed information about mortgage qualification, mortgage programs, mortgage shopping, etc.,
you can check out my site http://www.mortgagemystery.com/
It is NOT a sales site and, in my opinion, has alot of good information.
2007-01-11 18:56:25 · answer #2 · answered by robert_byrne 2 · 0⤊ 0⤋
That is pretty low, I'm sorry to say. My husband's credit score was in the 450's and he couldn't even be on the mortgage because is credit was so bad. My initial credit score was about 623 and I had a hard time getting a mortgage. You might want to talk with a mortgage broker; they usually have a few dozen mortgage companies that they work with. Just read up on "predatory mortgage lending" so you know how to avoid a shady lender. You also might want to talk with a real estate agent. For both of my houses, I found the best deal through a connection the real estate agent had with a mortgage loan officer. Another avenue might be an FHA loan (specificially for people with low income and less than perfect credit).
Good luck!
2007-01-08 15:56:52 · answer #3 · answered by rita_alabama 6 · 0⤊ 0⤋
To qualify for a mortgage, the most important consideration is the ability to make the mortgage payments. If you put 20% down and incomes are adequate, the bank has the security of the property and the 20%.
Don't put too much emphasis on credit scores.
2007-01-08 15:57:28 · answer #4 · answered by regerugged 7 · 0⤊ 1⤋
In my state they have a First time home buyers down payment assistance program. Find out if your state does. Usually it would be a housing authority. Anyways, They have specific lenders that they use for securing their mortgages. First and foremost your credit needs to be clean like no collection accounts and your payment history should reflect current. I have found that my number had rapidly improved in about 6 months of cleaning up just one collection account that was for $40.00 that I had forgotten about. You should proceed with caution with the bad credit mortgage companies. You will pay a higher percentage rate that can amount to hundreds of dollars a month. Wait to clean up your credit and then get pre-approved and then go shopping. find out about FHA loans as well.
2007-01-08 15:59:43 · answer #5 · answered by latinadiabla_1976 2 · 0⤊ 0⤋
There is no miracle way to jump your credit score up. There are however plenty of lenders who deal with less than perfect credit. The following site has links for you to get a free mortgage quote so you can know what you will qualify for. Good Luck.
2007-01-08 15:57:26 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I honestly dont know of any lender that will lend to someone with that low of a credit score. I would try lease optioning a house. If you want give my husband a call he is a mortgage broker
360-241-8970 Paul
financialevolution@comcast.net
2007-01-09 00:50:32 · answer #7 · answered by camrenalexis2 2 · 0⤊ 0⤋
I work with some lenders that don't even require a credit score for the loan. They will just look into what you make.
Your Loan to value will not be as high but it is an option to look into.
Feel free to contact me if you would like more info.
soren@c21uptown.com
2007-01-08 15:59:26 · answer #8 · answered by so3503 2 · 0⤊ 0⤋
Those are indeed bad numbers, but there are any number of loan brokers who specialize in making loans to people with bad credit. It will cost you, probably 9 percent or more, with likely a lock-in of a couple of years, but it can be done. Pay everything on time, and after a couple of years you can re-finance into something more reasonable.
2007-01-08 15:57:04 · answer #9 · answered by Anonymous · 0⤊ 0⤋
I can help. 516 538 5800 ext 239. Mortgage Consultant.
2007-01-08 16:08:02 · answer #10 · answered by Jeff 1 · 0⤊ 0⤋