I live in Michigan and want to purchase a home. My recent credit score is 564 (not good at all). 6yrs on the job. 32500 a yr salary. Also what kind of interest rate?? I am married and have 2 kids I am 25yrs old. I only want to borrow about $80,000 or less.
2007-01-23 00:04:32 · 9 answers · asked by jason_k_kelley 2 in Business & Finance ➔ Renting & Real Estate
If your debt/earning ratio isn't too bad, and you can make a decent down payment, you should be able to work something out with one of the "off brand" mortgage companies. I'm sure you know you'll not be getting much of a break on rates.
2007-01-23 00:08:26 · answer #1 · answered by wizjp 7 · 0⤊ 0⤋
You can definitely buy a home. But I wouldn't advise it. Give yourself some more time. Allow your credit score to move into the 600s. Then you should get yourself an FHA loan. You will need a 3% down payment (plus taxes and costs you will need 5%). Then you will be able to get a 30 year fixed loan with a rate below 6.5%.
If you try to get a loan now you will have much higher fees and you will get an adjustable interest rate, probably with a pre-pay penalty and the rate will be above 8%.
Do yourself a favor, save up some extra money, wait 1 more year, and you will be glad that you did because your payment will be about $300 less per month!!!
2007-01-23 00:12:14 · answer #2 · answered by MR MONEY 3 · 0⤊ 0⤋
Just because you can do something doesn't mean you should.
Your credit score is going to put you in the sub-prime market, where the cards are stacked against you. The interest will be high, and the terms will include prepayment penalties, high costs, and very strict late fee terms. Once you are in the sub-prime market, it is very hard to get out. The lenders have their hooks in you and want to do everything they can to lock you into this higher profit market forever.
Your better course of action would be to rent, pay your bills on time for a year, and get your score over 620. You'll qualify for an A-paper loan and be much better off in the long run.
There are two exceptions to this you might consider. One is an FHA loan. There is room for the lower credit score and its terms are akin to an A-paper loan. Also, call your state housing authority and find out about what are called CRA loan programs. There also have more leeway on the credit without the onerous terms of sub-prime.
But don't let anyone talk you into a sub-prime loan! Good Luck!
2007-01-23 00:52:55 · answer #3 · answered by BluntTruth 1 · 0⤊ 0⤋
You can buy a home, but you won't get a decent interest rate...There are companies out there that offer a subprime rate to those with an imperfect credit scores. Remember, every time you apply for a loan your credit history will be review and will lower your scores each time it viewed...Decide which company you want to go with before you authorized the company to pull your credit..
I think you should check out this website http://www.lifeafterbankruptcy.com/backissues.php(you'll have to register to be able to and some of the articles on how to buy a home after bankruptcy. It will show you what question you should be asking the mortgage companies. And it will also show you how to build up you credit scores. You should check out the website before contacting the mortgage companies...
Good luck, I've also includes some of the mortgage companies that offers Subprime Rate mortgage for you..
2007-01-23 00:31:31 · answer #4 · answered by stiletto 4 · 0⤊ 0⤋
Well...you can probably get a loan if you haven't many other loans outstanding. Do you have a car loan? Add that monthly payment to a list then. And add all other credit outstanding and your monthly payment to a list and get your total of all the monthly payments. Then take your annual income and divide it by 12 and then divide that number into the amount of monthly payment to existing credit. So you divide in your case $2708 into your monthly payment. Then add in the monthly payment to new loan. You will avg around 8-9% most likely and if your loan amount is $80,000 then your monthly pay ment for princaple and interest will be $615 at 8.5%. Not to shabby! You are at a 22% debt ratio with this mortgage payment. Well within the parameters.
2007-01-23 00:22:15 · answer #5 · answered by fade_this_rally 7 · 0⤊ 0⤋
Spend the next 6 months paying all of your bills on time. Then pull your credit with your Loan Officer. From there, he will be able to determine if you qualify or if you need to keep your credit clean for a few more months. You are fighting too big a battle if you try to purchase now.
2007-01-23 02:13:24 · answer #6 · answered by Anonymous · 0⤊ 0⤋
do all you can to stay away from the high interest lenders,,,,
after 2 years with no problems, and a fair score, even lower .. the fha is a good way to go ,,, in most cases fha will not even consider the bankruptcy.... i have been there done that,,, the best thig that really helped me was a book wrote by stephen snyder,,,called life after bankruptcy,,, i did follow what he said and in my case it turned out ok.
it appears that from what you have said,, ,,,,you have your heart and soul set upon takeing care of your family,,, super good for you.... do not get discouraged if you are denied for a loan....
the very first thing you need to do is to get your credir report and make sure there are no mistakes on it,,,,,,
now every american is entitled to one free credit report per year , from all 3 credit agencies,,,, free,,,,
do not wast your money on buying you score ,,,that is useless,,
experian is the only one that gives a true credit score...
good luck to you.
god bless you and your family,, and keep fighting for the american dream...
2007-01-23 00:26:42 · answer #7 · answered by RED WHITE AND BLUE 4 · 0⤊ 0⤋
shop it around thanks to the internet, we can do all kinds of things. I think we got a loan before with a not so good score. Try a credit scrub? do those work?
2007-01-23 01:54:57 · answer #8 · answered by swimmyfishy 4 · 0⤊ 0⤋
My husband is a loan officer and might be able to help you out. If interested email me at angeljre@yahoo.com
2007-01-23 01:52:11 · answer #9 · answered by Anonymous · 0⤊ 0⤋