2007-03-22 12:59:23 · 7 answers · asked by Kevin M 1 in Business & Finance ➔ Renting & Real Estate
If you fall into the category of a sub prime borrower, the market has changed almost daily. The guidelines are getting more strict and many programs are going away along with nationally know sub prime lenders. Unless you can verify your income, you will not be able to do 100% financing as a subprime borrower. As an FYI, sub prime rates are not "rip off" rates, however they are not the "A" paper rates you will hear people talk about who have more stellar credit. Subprime rates are high and get higher with the less you put down. If I were you I would concentrate on what your payment will be and what it will take to improve your credit during your prepayment penalty period which subprime loans have tied to them. This is a period of 1, 2, 3, or 5 years that if the loan gets paid off you can pay an amount equal to 6 months interest as a "penalty" for not honoring the terms of your mortgage note. There are also interest only options, 40 and 50 year ammortized options that allow slight relief payment wise. Good Luck!
2007-03-22 14:47:46 · answer #1 · answered by loan_wzrd 2 · 0⤊ 0⤋
If you are concerned about the interest rate you will get on a mortgage perhaps you should go to a credit repair company, repair your credit so your credit score will be higher, thus giving you a better rate.
You are the custodian of your credit, and it is what it is. So now you have to pay the piper for your discretion.
So you either want to get a house now with higher interest rates or wait until your credit score is better.
If you purchase your house now in one year, provided you pay your mortgage on time you may refinance to a lower rate just using your mortgage payment alone as the sole qualifier.
To find out the interest rate you are qualified for you should contact a local mortgage broker. You will find one in your local telephone book unless you have a referral from a friend or relative.
Before you call have the following documents available
#1 Six months of your current bank statements to include any statements from your 401K program at your place of employment.
#2 Two years of federal income tax along with the W-2
#3 One complete month of your current paystubs.
The mortgage broker will complete a mortgage loan application, afterwhich he will then run a credit check to find out what your credit score is.
Once this has been done he will be able to tell you your interest rate the loan programs you are qualified for, if you are able to get a 100% mortgage and issure you a pre-approval letter to purchase your home.
You may now find a real estate agent or get a referral for one, find you a house that you are pleased with and want.
A sales contract will be written for you and the seller to sign, an appraisal will be ordered to prove the value of the property.
Your mortgage broker will walk you through the final steps untill loan docs are signed, a closing has taken place and you are in your new home.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-03-22 13:52:54 · answer #2 · answered by Skip 6 · 0⤊ 0⤋
http://www.fivestarsmortgage.com/bad-credit-mortgage/. You can find some info there. If your looking for 100% financing your going to need a mid score of 580 or higher. Either that or a score in the low 500's and a seller that is willing to contribute some funds toward a downpayment and closing costs for you.
The subprime market has experienced some very hard times lately and it's become difficult for someone with poor credit to get 100% financing anymore. I still have some lenders that are doing some aggressive programs though.
2007-03-22 13:58:15 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Get real. Why would any lender take you on with no money down and crappy credit? Maybe if you had great credit and no down payment they would, or even crappy credit and at least 10% down, but it is totally unrealistic to expect them to take a chance on you when you don't have anything invested and you have proven to be a poor credit risk in the past.
2007-03-22 13:45:51 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Usually a 580 score will get you zero down at reasonable rate. FHA and VA loans have super rates and are non -credit driven.
2007-03-22 13:09:20 · answer #5 · answered by ? 5 · 0⤊ 1⤋
Yea, if some of these predatory lenders that usually spam here- below me, and say they can, they are full of it, this isnt possible...
2007-03-22 13:19:28 · answer #6 · answered by Mark P. 5 · 1⤊ 0⤋
Buddy, I don't think that's possible.
2007-03-22 13:02:24 · answer #7 · answered by Anonymous · 1⤊ 0⤋