If my fiance and I have have a credit score median of about 550 and want to purchase a home for $140,000?

Question

what will we need to do to get 100% financing we do not have any money down. If we got a cosigner such as someone who owns a business would that help?

Answer 1

Jazzy Jay don't be discouraged by such talk from the first post.

You can acquire 100% financing you just need to speak to the right people and/or mortgage company.

100% financing can be obtained thru gifts and grants which is best described as monies offered to a buyer that doesn't have to be paid back. In addition you can have the excess amt rolled into the financing of the mortgage. But some reps won't tell you this first hand.

As I said - just go to the right people. And it doesn't have to be a 'rinky-dink' company. There are several well known lenders that deal with people with low credit scores. But you obtain approvals much easier when you go thru a mortgage company. A loan officer can look at your credit file and will know what lenders will be willing to finance you and your fiance for a loan.

Now I said all of this with the thought in mind that you don't have any 'recent' delinquencies on your credit file. Don't attempt to obtain any new credit until after you close on your property. Even if you are approved for a home loan and find yourself staring down the barrel of a closing date - don't run out and begin applying for extra credit for new furniture (etc) until after you close. Credit reports are always pulled the day before closing - and new excess inquiries isn't appealing to the eye. If you have any further question just send me a note.

Good luck.

Answer 2

I had a similar situation. my credit score was 590 and I just purchased a house that was $150,000. I went to a loan specialist company and told them that I would like 100% financing. the way it worked for me was to bid the asking price of the home, on the condition that the seller pay 100% of the closing costs. There are very few lenders that allow that, but they are out there. Also, see if any fees you may acquire in the purchase can be added to the loan. It costs a little more in the long run, but when you have bad credit and no on hand cash, thats about all one can do. Good luck! The name of the palce I used to find a loan was called Alternative Lending. Look them up on the internet.

Answer 3

Most lenders don't do 100%LTV most you could get is 95% and that is usually with really good credit. With a 550 you just passed the 540 mark that most lenders will deal with but if you go online and look up first time home buyers grants ($8,000 for down payment) that should help you two immensley! Being it's a grant you never have to pay it back, unless you sell the house which i am sure won't be for awhile! GOOD LUCK

Answer 4

Depending on your actual payment history over the past 12-24 months, and especially if you got a strong co-signer, you could get an FHA loan with 3% downpayment. The 3% can come from a gift, grant, all sorts of places.

Someone who owns their own business may or may not be good, since many write off so much of their income they don't have much extra capacity on paper. And many have their own debts.

Without that, you'll need to get up to a 580 score, and having a co-signer wouldn't really be any help.

Answer 5

Very uncertain you'd have the capacity to qualify for a loan with a 550 score. With an income of $a million,800 a month, in case you are able to pull up the credit, you may finally have the capacity to qualify for a loan contained in the region of $60,000. also favor to have a deposit (minimum of three.5% for FHA - it really is about $2,000) and closing expenses (which run between 3 and 5% or $a million,500 to $2,500) contained in the monetary organisation, plus some months of living price (figure yet another $a million,000 to $2,000. So, once you purchase the homestead, you'll choose $4,500 to $6,500 in money.

Answer 6

Talk to your realtor. They should be able to get you in touch with a mortgage company that does special financing if they can't approve you with the credit score you have. It IS possible to get 100% financing, you just need to shop around...

You should also get a copy of your credit reports from all 3 agencies (www.annualcreditreport.com = free!) and dispute any items that are not yours...that will increase your credit score

Answer 7

It's nearly impossible for anyone to get 100% financing unless they have lots of cash in the bank or equity in other property. Especially in light of such a low credit score, you will not find anyone who will give you any sort of mortgage. You need to raise your credit score and save at least 10-15% to make a downpayment to have a chance at getting a mortgage.

Answer 8

Check with different mortgage lenders...you don't have to settle for the first one that you speak with. You will want to make sure that they don't pull your credit until you find out what they can do for you (if they pull it, it will drop your score a little more).
You may also look for a lease-to-own. This will allow you time to improve your credit even more while saving money for closing costs.

Answer 9

A co-signer would help, but with a score of 550 you would need a large down payment. Call a professional debt counselor. They can help you get your score up by getting your outstanding bills taken care of. Good Luck.

Answer 10

Put it off for 6 months and get your credit scores up. You will save yourself so much headache, and fees, and get a lower rate... thus easier to qualify.