Posted on: 05th Mar, 2012 11:59 pm
I have bad credit but I have taken steps to improve it and it’s on the way back. However, it is presently under 600. I bought an owner finance house and I am 3 years into a 5 year deal. At the end of the contract I want to pull the equity out and buy another multi family home with the cash. And I would like advice on how or where to go. I expect my credit to make it close to 700 by that time.
If you have equity in the property and if you have improved your credit score, then you will be able to buy another home using the owner financed property as the collateral. You can contact the local lenders and apply for loans when your credit scores are improved. This community also has a large number of lenders. You can seek a no obligation free mortgage quote from them and get to know whether or not you can qualify for a loan.
After your credit score is over 620, you can start looking at cash out refinances on your present home with an FHA mortgage if your present home is an owner occupied 1 to 4 family house.
When you look at buying another multi-family, are you buying a 1 to 4 family? Over that is a commercial mortgage.
If you will be looking for an investor residential mortgage, you need a 660 or higher score and 20% to 25% down payment. You need credit score over 740 for best interest rates.
When you look at buying another multi-family, are you buying a 1 to 4 family? Over that is a commercial mortgage.
If you will be looking for an investor residential mortgage, you need a 660 or higher score and 20% to 25% down payment. You need credit score over 740 for best interest rates.
