Posted on: 04th Nov, 2010 11:23 pm
My name is Eden Bishop, and I am 22 years old. I paid cash for my house 2 1/2 years ago, when my husband died in Iraq. My home was appraised at 204,000 when I bought it, and I want an 80,000 loan, which should'nt be a problem, right? Well, I cannot get financed because I really don't have any credit, and all that is on my credit is medical collections that should'nt be on there, because I have been 100% covered by the Government for the last 5 years! I get paid 3000 a month for life from VA, so I can afford the payment, so I would think that surely I could get this loan somewhere! My question is just that, can you tell me where I might try to get this loan? Who will finance me? Its a win-win in my book, because if I defaulted, which I would never! the loan company gets a home worth at least 204,000, in exchange for a loan for 80,000!!! So, I don't see why there would be a problem! So please let me know, thank you!
As you don't have a credit record, the lenders will not be ready to give you a loan. In order to get a conventional loan, you would require a score of 700-720. To get a FHA loan, you should have a score of 580 and for VA loan, you should have a score of 620. Unless you meet this criteria, the lender will not be ready to give you a loan. You can speak to the lenders who offer personal loans and check out if they can help you in this regard.
Thanks for the great advice! lol I know that there are other options, I just thought this website would know what those options are!! Anyone could tell me what you just did, but I was told that this site was great for offering other solutions! I know there is someone out there willin to give me a loan on my house, when I have 100% equity!! My credit score should'nt matter for gods sake, that is stupid!! How could they lose? I would be the only one that could lose in this situatuion!! So thanks for nothing!!!
Hi Guest,
You are wrong in saying that the credit score won't matter. You should remember that though you have 100% equity in your property, unless you have the required credit score, none of the lenders will offer you a mortgage. Your credit scores are a proof of the fact whether or not you manage your finances well. If you've a bad score, lenders will be of the opinion that you cannot manage your finances well and so they won't give you a mortgage.
Thanks
You are wrong in saying that the credit score won't matter. You should remember that though you have 100% equity in your property, unless you have the required credit score, none of the lenders will offer you a mortgage. Your credit scores are a proof of the fact whether or not you manage your finances well. If you've a bad score, lenders will be of the opinion that you cannot manage your finances well and so they won't give you a mortgage.
Thanks