I am loking to move to another state and am looking to buy a townhome. I would like to get a no money down loan. My credit score is 550 and my wifes 650. What options are there to get a no money down loan? Please only respond with usefulle knowledge. thanks
2007-08-24 03:53:58 · 9 answers · asked by diego M 1 in Business & Finance ➔ Renting & Real Estate
I'm sorry, but with such low credit scores, and with the subprime mortgage market collapsing, I think it's very unlikely you will find a reputable lender to give you such a mortgage. No money down means there is no protection for the bank if you stop paying because you've borrowed the entire price of the house.
2007-08-24 04:07:23 · answer #1 · answered by AnOrdinaryGuy 5 · 0⤊ 0⤋
With todays credit crunch, which by the way is only going to get worse in the next few month slim to none, and if you do the payments will kill you . Read the financial news not what you want to hear but it is reality. Credit has tightened up subprime is gone, Alt-A is going down, even those with good credit are having trouble finding 100% financing. There are 12 million ARM's coming up for adjustment in the next 6 months and many more are going to be joining the foreclosure market. Countrywide the largest mortgage company just has to take out a 12 billion dollar loan to remain solvent with investors running away from the mortgage industry, making credit harder to get. Add to that if moving to another state do you have jobs lined up? Part of the rating for loans is time at a company. Good luck
2007-08-24 11:05:02 · answer #2 · answered by Pengy 7 · 0⤊ 0⤋
Investors require the lender use the middle score of the lowest scoring borrower as the assigned credit score so your 550 is what they will be using to qualify you.
Finding a lender in this environment who will do 100% financing with a 550 score is going to be very challenging if not impossible.
The only option might be if you can qualify for your purchase using only your wife's income and even that is going to be a challenge as score requirements for high loan to value purchases have dramatically increased in the last few weeks.
2007-08-24 04:11:29 · answer #3 · answered by Anonymous · 0⤊ 0⤋
no money down will increase the interest rates because of the increased risk; the mortgage companies are not giving out as many at risk loans due to the increasing foreclosures ; there will always be people who will take your name and rating and charge at outrageous interest rate if someone is looking for such; they have teaser rates and then increase i.e. variable rates; once your name is on the dotted line, your credit is at risk as well as your future; there are common charges that can run sometimes as much as your mortgage and you have no control over those fees; you don't pay or in arrears and they foreclose; they are not forgiving ; be careful and think through circumstances , loss of job, divorce, sickness etc; it gets old after awhile if your only fun is the mortgage payment and 30 days comes by quickly at payment time.
2007-08-24 04:05:33 · answer #4 · answered by sml 6 · 0⤊ 0⤋
I WAS TOLD THAT THE LOWEST SCORE TO GET A LOAN IS 530 AND THAT IS WITH 10-15% DOWN.
2007-08-24 04:36:30 · answer #5 · answered by amberjohn123 2 · 0⤊ 0⤋
I'd have to say its not going to happen, my broker said zero down would require high 700's and the look at the lowest score.
2007-08-24 04:06:50 · answer #6 · answered by sarah W 4 · 0⤊ 0⤋
I t wil depend upon the organization in which you are applying for loan
2007-08-24 04:06:15 · answer #7 · answered by Anonymous · 0⤊ 0⤋
I believe the answer you're looking for can be found on this site. They've got lots of info about the subject.
2007-08-24 17:57:26 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Your wife must qualify on her own.
2007-08-24 04:10:47 · answer #9 · answered by ? 4 · 0⤊ 0⤋