my credit score is 579.how is it that i cant get a lender to help me get a small house?

Question

that cost under,100,000.but i know of people who arnt legal who have one,the lender that i had told me to get a credit card all i need is 120 more points then he can help.he said with my credit like it is i should have no trouble geting one i tryed and they keep deniang me one,he also didnt tell me that for everytime i try to get one my credit score is getting worst.

Answer 1

Most banks require a 580 minimum score to get 100% financing. So I'm assuming you have zero down payment, or you should have received some type of offer already.

You don't need 120 points. You need 20. Actually 21. 41 would be better.

No idea what your credit report really looks like, but a lot of mortgage brokers have score modelling software they can use to see what it would take to raise your scores. Call around til you find someone who has this ability, and see if they'll run one for you and walk you through how to get your scores up. Then he can do your loan once you've moved up to where you need to be.

Answer 2

Your credit is very bad and until you pay off your debts and have them cleared it will more then likely prevent you from getting 100% financing and if you do get it prior obtaining a better credit score the interest will be so high it will eat you from the inside out. I know illegals that have houses to and I wont tell you how the ones I know got the houses but lets just say if the government finds out they wont have the homes very long. Back home meaning Texas, illegals can purchase fake ssn at the flea market in the south section of town as well as fake green cards and there are even some real estate agency's that hang out in these areas trying to solicit their business because most assume if they own a home they are legal and usually its illegal agents selling to illegal immigrants. And that is from personal experience

Answer 3

Well, the credit score is not everything. Any lender will base decision to extend or not to extend credit on three components:
1. Credit Score -- The most powerful component
2. Down payment;
3. Income.
If you have any two of these in good shape, and missing one of those, you will have no problems getting a loan.
Example: if you have a credit score of 721+ and a 10-20% down payment, many lenders may not even ask to verify your income, just the source of down payment.
If you don't have a down payment, but have verifiable income and decent credit score, you are still in good shape.
If you credit score is bellow 620, they can still get you financing through non-conventional lenders, those are mortgages that don't get sold to Fannie Mae or Freddie Mac.
But you need to be able to show them something! If you show up and say, hey my credit score is not good, and I don't have money for down payment, and I work for cash, so I can't prove my income, they will turn you down, since you can walk away from the property at any time and you will have nothing to lose, you didn't put anything down, and your credit can not get worse.
The “illegals” that you say got mortgages, either did something illegal and forge the papers, or they put large down payment i.e. 20-25% and then there will be plenty of banks willing to lend them money, since there are programs for non-residents. The banks are not in business of enforcing emigration policies; they are in business of lending money to creditworthy individuals. If you put 20% down, they know you've got something to lose if you fail to pay.
I hope this answers your questions.

Answer 4

A 579 score is bad, bad, bad and trying to get more access to unsecured debt (credit card) is worse, worse, worse.
You score will only get better when your debts are paid and your income is free of bill collectors.
A housing lender might finance you but the % rate for bad credit is veryyyyyy high, plus if you do not have 20% down . . . you have to pay private mortgage insurance that costs a lot of $$ too.
I got a second job and paid off ALL my debts, then ran it awhile longer to save up the 20%.
If you really want a house, I recommend you do the same.

Answer 5

Check with another lender. Some of them will allow you to get letters from your electric, phone, or cable companies showing that you have a strong payment history to boost you up if you have a low credit score. Also check in to things like Habitat for Humanity, if you qualify you will get an interest free loan. Also check with your local government to see if there are any housing programs that can help you....GOOD LUCK

Answer 6

A credit score lower than 600 almost certainly guarantees no credit. Work to get your credit improved, however I believe 700 is more than you need for a loan. Yes, he is right, each time credit is checked, it decreases your credit score. Look online for ways to improve your credit score - including pay up your bills and lay off the credit cards.