A friend has a very low score but has an opportunity to purchase her new home for a very very good price. where can she apply?
2007-08-21 07:52:56 · 5 answers · asked by Optimistic 4 in Business & Finance ➔ Credit
It depends. Most lenders are really tightening up the criteria needed to get a mortgage. Just look at the news or the stock market lately and you'll see what a mess the subprime market has been. the lower price of the home could EASILY be offset by the long term extra costs of borrowing (i.e. the higher interest rate he/she will pay from the low credit score). It's worth cleaning up the credit score and saving for a bigger down payment. Bigger down payments also make it much more likely that you can get approved.
2007-08-21 08:05:34 · answer #1 · answered by CSUflyer 3 · 0⤊ 0⤋
Do you watch the News? Currently, the whole mortgage industry is having a very hard time with people making mortgage payments and defaulting on home loans, who did not have either the income or the credit history to quailify for more traditional standards. In other words, it is proably going to be several weeks or months before anyone with a credit score of less than 700 is going to get their paper bought. Sorry, I will offer a suggestion, besides the credit score, the finance institutions that your friend applies to will also want a very good idea of the debt to income ratio that she has. So, tell your friend to start paying off her bills.
2007-08-21 09:01:44 · answer #2 · answered by sfcjcl 5 · 0⤊ 0⤋
you would be wanting an somewhat tricky time. Banks do no longer think of lots of synthetic housing and the credit rankings at the instant are not likely to help. i could think of you like a score above 650 as a manner to get the own loan. or you're dealing with a tricky money form own loan at a intense interest fee. an somewhat intense double digit fee. solid success Rob
2016-10-08 23:35:55 · answer #3 · answered by ? 4 · 0⤊ 0⤋
With the industry in the shape it is in without 20% down plus closing costs she basically cannot. The subprime market is gone and is now moving up to the Alt-A (between subprime and prime) even credit for the prime lenders is getting tougher.
2007-08-21 10:54:11 · answer #4 · answered by Pengy 7 · 0⤊ 1⤋
She should call a subprime lender, any broker should be able to help. Minimum credit score depends on how much they are putting down.
2007-08-21 08:24:57 · answer #5 · answered by Thomas K 3 · 0⤊ 1⤋