Okay here's the deal...my husband and I both have crappy credit. We live in California and are not willing to move away. We live in a 2 bedroom apartment right now with our two children and there's just not enough space. We need, not only more square-footage, but a yard so the kids can actually go outside and play. What would be our best bet as far as mortgages go so we can buy a house?
2007-02-21 09:41:05 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Hi - Have you pulled your credit or have had someone do it for you? Do you know what your credit scores are?
There are other factors to consider, besides credit. Medical Bills are Over looked by underwriting (since medical is a unforseen event), where as credit cards, are looked at (since you purchased items on a credit card.) Also, Job time of 2 years, Rental history for 2 years is looked at. What collections & judgements are on your credit report. Some collections may not have to be paid off. Judgements may need to be paid off - depends on the Lender and Their Underwriter. All of these are taken in as a factor on getting a home loan. Credit can be worked on, by adding alternative credit. If you are paying regularly on a cell phone, auto insurance, rent, etc - these are called alternative credit.. All is not HOPELESS - ok - take a deep breath. If your credit score is 500 or higher, anything is workable, with a seller second - etc the higher the credit score the better. Lenders look at the middle score...of the 3 scores. If you only have 1 score or 2 scores (have seen it), it is still workable....but unless a lender sees the whole picture - credit - income - job time, etc - than you will not have a "true" picture of what you can afford - To get 100 percent financing you will need a MIDDLE Credit score of 580, but, like I mentioned there are Sellers 2nd, and FHA does not necessarily go by your credit score, but they DO look at your credit for collections, and judgements that appear on your credit report.
Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) FHA/VA approved too. If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home &/or refinancing, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.
It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realtor, and the seller has to pay the realtor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far?? You may find a For Sale By Owner, they are sometimes more willing to help you with closing cost(s) associated with your loan, since there is no realtor fees.
Also, decide on what you can afford - what are in Calif do you live in? You could find something less expensive if you are willing to commute a short distance, to get into a lower home value. Lots of factors to consider.
The Loan Process can be fun - at least I love being a Broker, getting to help my clients is rewarding to me. Find a Broker who cares and will go over the full loan process with you and be in contact with you daily. The one on one customer service is important, to you, the client, to let you know the whole loan process.
2007-02-21 11:48:26 · answer #1 · answered by W. E 5 · 0⤊ 0⤋
Credit is only a problem if you can not get a mortgage. If you find the GOLDEN DEAL - a property that if for sale well below the appraised price for the area, you will be able to get a mortgage even if the interest rate is high.
Since the conditions you told me are so, I would enter into the purchase with a bad mortgage. The payments would be as bad as staying in an apartment. But you can refinance as your credit improves because you are paying a mortgage. With the right property, a little property improvement and a better interest rate on the mortgage will make you very rich on paper.
2007-02-21 09:50:22 · answer #2 · answered by whatevit 5 · 0⤊ 0⤋
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2016-09-29 10:43:09 · answer #3 · answered by vyky 4 · 0⤊ 0⤋
Bring cash. With a huge down payment, say 40% or more, the devil himself could get a loan for the balance.
2007-02-21 09:57:21 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Maybe you can find a rent-to-own situation with owner financing. Other than that, if your credit is really bad, you probably won't be able to get a loan.
2007-02-21 09:44:35 · answer #5 · answered by Judy 7 · 1⤊ 0⤋
We offer credit repair to customers. Contact me if you're interested.
2007-02-21 09:59:07 · answer #6 · answered by Phil H 2 · 0⤊ 0⤋