My boyfriend and I are trying to buy a house from his parents for $80000. His credit score is 550 and mine is 450 due to our divorces. We have tried 2 mortgages already and have been turned down. Does anyone know of any company that can help us????
2007-10-12 06:04:23 · 6 answers · asked by chellebeth75 2 in Business & Finance ➔ Renting & Real Estate
have you tried FHA financing?
If you had lates in the last 12months then you cant do FHA....
there may be other programs, but will require a down payment. I would suggest you clean up you credit first
2007-10-12 06:33:53 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I don't know of any mortgage companies that will help with credit scores that low. Here is a quick suggestion. If you bank at a local bank and have a good relationship with them, try and apply for a mortgage through them. The industry is not taking risky credit right now so I think this would be a good solution for you. The downfall is that with your credit ratings you will have a higher interest rate. The good out of this is that after a year or more of making payments on time, every time, you can re-finance your loan for a lower interest rate.
2007-10-12 06:09:40 · answer #2 · answered by Kelly 3 · 0⤊ 0⤋
I'm afraid you may be hard pressed to find a loan company today. What I might suggest is you work out a "seller's financing" agreement with the parents for a couple of years. A contract for deed is often used and it needs to be recorded.
Then work hard the next two years to improve your scores so that you can then go for a mortgage and pay the parents off.
2007-10-12 06:12:27 · answer #3 · answered by Alterfemego 7 · 1⤊ 0⤋
Well in todays market that score is way below the line. You also have to take in consideration you income, and your debt to credit ratio, in other words can you afford the house? My guess is with those scores you cannot afford the bills you now have, much less the addition of a mortgage, taxes, upkeep etc.
2007-10-12 10:20:22 · answer #4 · answered by Pengy 7 · 0⤊ 0⤋
It may be possible to qualify for a mortgage if the $80,000 is below appraised value. I've done several. If the price you are paying is at least 20% below appraised value, contact a mortgage broker who does loans for people with credit issues. There are plenty of them hungry right now. Be sure and tell them what the value of the home is. Again, if it's below appraisal, tell them you are trying to do a "Gift of Equity" purchase. Good luck.
http://www.alabama-mortgage-specialists.com
2007-10-12 06:33:10 · answer #5 · answered by Rono 2 · 0⤊ 0⤋
you need to get credit repair to be able to clean your credit ... go to annualcreditrport.com and you can dispute any errors. 9/10 people have errors on thier credit reports.
2007-10-12 07:15:27 · answer #6 · answered by SUPER WOMAN! 2 · 0⤊ 0⤋