I would like to buy a condo, but my credit is bad. My score is, 567. I have no debt now, but i was stupid and had late payments, defaulted on a student loan, never had a credit card. Aside from my credit score, i'm not so bad off. I made about 45k a year, and I have 24k in the bank. I'd like to buy a condo for about 200k, of course it woudl be great if i could afford more. What are the odds that i'd be able to get a loan? Does anyone know?
2007-05-23 02:37:47 · 12 answers · asked by Anonymous in Business & Finance ➔ Credit
I already got denied for a loan by bank of america-that's who i bank with.
2007-05-23 02:44:04 · update #1
Im in boston and i cant afford a house, would have to be a condo
2007-05-23 02:45:15 · update #2
my credit score was really low also and i got a house but now i don't want my house anymore because the payments are so high. i wouldn't by a condo there not the greatest.
2007-05-23 02:43:58 · answer #1 · answered by raemarquez 1 · 0⤊ 0⤋
Your odds are pretty low at this point. A credit score of 567 is really below the point where you can get a loan or if you do the interest rate is going to be VERY high.
Here's my suggestion. Get a credit report if you don't already have one. On this report you will find any collection entry such as your Student Loan. On any and all of these that you haven't 'settled' you need to contact the owners of the debt and reach a settlement with them and pay them. Paying off any bad debt with either a full payment or a settlement agreement will make the biggest boost to your credit score.
Your credit score will not improve for at least a minimum of 3 months regardless of what you do. So.. you'll have time to shop around and find the best deal possible. I would also suggest you find a mortgage lender / loan officer that you can trust and talk to them about what you want to do and they can assist you in putting your credit affairs in order. The big plus here is that with their assistance you'll have a 'friend' to go to when it comes time to make the purchase.
good luck and I hope this helps!
2007-05-23 09:47:13 · answer #2 · answered by wrkey 5 · 0⤊ 0⤋
It does not mean that the banks are not going to give you a loan, but your interest will probably be higher. But check with different banks and also try to get a good realtor. Right now, it is a buyers market. Also, if you are thinking of buying a condo, find out what are your association payments , because sometimes they are very high, and remember that not only are you responsible for whatever brakes inside of your condo, but if they have to do any repairs outside they can make you pay on top of your normal association payments. Do your homework and Good Luck!
2007-05-23 09:54:56 · answer #3 · answered by saraiz2000 2 · 0⤊ 0⤋
There are some organizations that will fund someone with your credit history. You have a nice amount of savings and a decent income for a single person, but you really need to work on that credit score. One thing you can do is challenge the bad credit entries. They will be removed while they are investigating them and you could strategically plan your applications for the right timing.
2007-05-23 09:44:26 · answer #4 · answered by Alchemist 4 · 0⤊ 0⤋
Get on the phone and start shopping yourself around. You sound like a qualified purchaser to me. I'll never understand why the bank we deal with personally always seems to want to deny us of a loan. My experience says that talking to your bank's main competitor in the area will result in an offer. Good luck.
2007-05-23 09:47:54 · answer #5 · answered by Deano 7 · 0⤊ 0⤋
You should try to get a loan through a realtor sometimes they can pull more strings. My husband has worse credit than that and we bought a house. Go through a mortgage broker, call around, BUT when you have bad credit (our credit is much worse than yours) you can't get as high of a loan as others.
2007-05-23 09:58:57 · answer #6 · answered by Anonymous · 0⤊ 0⤋
You need 20% down, and a 15 year, fixed rate mortgage. Your total PITI should not exceed 25% of your take-home pay.
As far as arranging the financing, find a mortgage broker who does "manual underwriting". Don't pay a bunch of points for this, just explain that you aren't as high a risk as you once were.
Go to www.daveramsey.com and click ELP (Endorsed Local Providers) they'll have mortgage firms listed in your area.
2007-05-23 09:43:39 · answer #7 · answered by Anonymous · 0⤊ 0⤋
You probably will be able. Make sure you have nothing recent on your credit report that's bad. You probably will have to pay more interest, but I'd say you should be able to get a loan.
2007-05-23 09:42:49 · answer #8 · answered by scmichel1 3 · 0⤊ 0⤋
All you need to do is ask a lender and see what they say. 200K is less than 4 times your salary, and you have a good deposit, so why not just go ahead and apply. They can only say no, and will be able to tell you what you need to do to get a yes.
2007-05-23 09:42:38 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Yeah you can, might have to get a sub prime rate which is slightly higher then the others. Call a mortgage broker, and get a free initial consaltation
2007-05-23 09:41:34 · answer #10 · answered by meow_moew 1 · 0⤊ 0⤋