what are the chances of qualifying for a mortgage with a credit score of 547 and no money for a down payment? have any of you qualified with worse? what was your situation?
2007-08-08 09:03:31 · 6 answers · asked by omama 3 in Business & Finance ➔ Renting & Real Estate
I am a loan officer for many years. I will be frank with you, as of today, there are probably NO chances of qualifying for a mortgage loan with this low score and no down payment.
Those used to be the Sub Prime loans that everyone is now talking about and banks are dropping those programs like crazy. Also, nowadays you are probably better off renting and saving money for down payment. Even if you did find a bank that will give you a mortgage, the payment will be by far greater than a rent on a similar property. So, my advice, relax, start saving money and work on your credit score.
2007-08-08 09:09:55 · answer #1 · answered by Alexander K 3 · 0⤊ 0⤋
The only other option would be to see if you could qualify for a Fannie Mae My Community or Expanded Approval loan. I'm closing one next week with a 536 middle score and no down payment - but the Private Mortgage Insurance is ugly.
Have someone competent in the mortgage industry (fair disclosure, I am one) analyze where you are and lay out what can and can't be done. If you can't do it now, work with them to lay out an action plan whereby you WILL be able to do so.
2007-08-08 16:51:59 · answer #2 · answered by Anonymous · 0⤊ 0⤋
A year ago you probably could have qualified. Now, you're not going to be as lucky. It's possible, but it's not very likely.
Work on getting your credit score up and in a year or two the market will be in a good place for you to buy. Or if you can get a cosigner, that might help.
2007-08-08 16:07:07 · answer #3 · answered by J P 4 · 0⤊ 0⤋
In the last few months (and even in the last few days), getting a loan with lowish scores (and no down payment) has become much harder. With some many loan defaults, lenders are getting pickier. And more likely to demand a down payment.
That isn't to say you can't get a loan. But you're going to face more rejection that was once the case.
2007-08-08 16:08:15 · answer #4 · answered by Jay 7 · 0⤊ 0⤋
You may try to get a foreclosure property and take over payments.
2007-08-08 16:08:48 · answer #5 · answered by ZoeGA 2 · 0⤊ 1⤋
FHA, if you have cleaned up your credit and been good for 12 months.
2007-08-08 16:28:20 · answer #6 · answered by ? 4 · 0⤊ 0⤋