In this environment is it possible to get such a mortgage anymore provided sufficient income?
2007-08-06 06:35:24 · 4 answers · asked by ebillar 1 in Business & Finance ➔ Personal Finance
It will vary slightly among lenders, but the average credit score for a subprime loan is about 620. So, anything below 620 is considered subprime.
There are still many lenders who will lend to borrowers with lower credit scores. The factors which may work in your favor are:
Putting atleast 15-20% down on your home, the higher the downpayment, the easier it will be to secure a loan.
Not borrowing more than 2-3x your annual income will improve your chances.
Looking for a fixed loan as opposed to an adjustable one.
Paying only 25%-30% of your monthly take home income on housing costs.
If you have low or no credit, you can also apply for federal housing admin loans or other low income housing loans through approved lenders.
2007-08-06 06:40:35 · answer #1 · answered by PK 5 · 1⤊ 0⤋
Subprime lenders are falling by the wayside in droves. Another went bankrupt today - 6 Aug.
You will have to come up with a downpayment - buy mortgage insurance if under 20% - and demonstrate that you can not only afford the mortgage payments, but also the taxes, insurance, bump in rates (if an ARM) without strain.
Even then it will be an expensive loan. It would be best to increase your score before applying. That would save you thousands in fees and interest.
2007-08-06 14:05:52 · answer #2 · answered by Anonymous · 0⤊ 0⤋
most of the time below 620. But that is just a guide. Every lender is different and you can get a Fannie Mea at 580 or higher if no negative reporting in the last year. FHA requires no score at all
2007-08-06 13:42:26 · answer #3 · answered by golferwhoworks 7 · 1⤊ 0⤋
if you can fully document your loan (show income), you still have a chance down to 580. http://www.choicefinance.net/
2007-08-06 14:42:35 · answer #4 · answered by Anonymous · 0⤊ 0⤋