We will be able to put down between 6 to 10 thousand on either property or a house. Our credit scores are both in the low 500's, I have a repossession judgement and some few old small bills but no credit cards. I have nothing that shows good payments.
If we buy property at 30 percent down could we get financed for the remaining 70 percent and how likely would we be able to get financing for the improvements and a modular home or a double wide trailer using the land for the collateral?
2007-02-11 17:31:59 · 7 answers · asked by dreamer12324 2 in Business & Finance ➔ Renting & Real Estate
Despite your credit score, you shouldn't too many problems finding financing. Although I am not a Lender, I am a Real Estate Agent in Massachusetts. I do have to warn you that each state has different laws concerning the land issues.
Most loans are 80/20, that means 80% financing and 20% down payment. If you have 30% of the loan this is only better for you. Most banks and lenders have several programs for those with not so great credit. With 30% down, this should keep your interest rate lower than it would be if you went with a 90 or 100% program. Plus, it should show the lender that you have the capability to save and change your credit.
As far as using your land as collateral, this can be tricky. As I said earlier, because I don't know what state you live in and each state has different land laws, I can't really tell you much about that. I don't want to give you false information, I would be more apt to talk to a Lender in your state about the Land Financing issue.
2007-02-11 18:23:10 · answer #1 · answered by Jenn R 3 · 0⤊ 0⤋
If you put 20% down you should not have a problem purchasing a home, if you put more down it would be better for you. Before you do anything contact a mortgage broker.
All banks just about offer the same products and loan programs with the different qualifications in each of their programs.
Your interest rate is based on your credit score and how well you have paid your consumer debt over time.
In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book.
He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate. The amount you have to put down if any
The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.
When you speak with the mortgage broker you will need the following documents to complete the loan application
#1 One month of pay stubs for each person that will be on the mortgage.
#2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.
#3 Two years of federal income tax along with the W-2 that match.
Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home.
In this pre-approval letter will be the amount of house you are qualified to purchased.
Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.
Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.
Your mortgage broker will now order an appraisal to show proof of the property value.
The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed.
After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.
I this has been of some use to you, good luck
"FIGHT ON"
2007-02-11 17:59:50 · answer #2 · answered by Skip 6 · 0⤊ 1⤋
Bad credit is one of the worst problems to have... however there exists a solution.
I will hereby talk from my personal experience.
I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :
http://umgarticles.atspace.com/debt-consolidation.htm
if it helps kindly remember me in your voting!.. cheers!
2007-02-12 21:51:19 · answer #3 · answered by gabriel jones 4 · 0⤊ 0⤋
Sounds like you may need some creative financing, but if you put down 20% then used the remainder for the improvements, that might fly. I would take a few seconds and fill out the free evaluation form at
www.totaldebtsolutionsllc.com
A knowledgeable loan officer will contact you within 24 hours.
2007-02-12 06:42:00 · answer #4 · answered by CALIFORNIA GOLD 3 · 0⤊ 0⤋
30% down payment is good eough to get a mortgage or a home loan.
http://index-go.com/debt-consolidation-refinance-loans-mortgage.asp
2007-02-13 04:44:01 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Check this site out!It helped me a lot while dealing with the same issues.
http://mortgage-loan.learnmagics.com
Hope it helps you too!
2007-02-11 22:18:49 · answer #6 · answered by rol3y2104 1 · 0⤊ 0⤋
you'll get something here http://www.wesayes.com just be honest on your application
2007-02-13 06:35:22 · answer #7 · answered by jester c 2 · 0⤊ 0⤋