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Help with financing

Posted on: 17th Feb, 2009 03:37 pm
My sister in law is trying to buy my house but needs help with financeing. Sale price is $132,000 they have about $25,000 for down payment. There credit is between 518 and 550 on experian. They have had the same jobs for over 3yrs. Can anyone help?

[size=9:2c2555579a][color=Red:2c2555579a][Link deactivated as per forum rules. Thanks.][/color:2c2555579a][/size:2c2555579a]
How much does she make a month? And you need atleast 580 to even qualify for an FHA loan. Does she have any major collections or liens on her credit?
Posted on: 17th Feb, 2009 04:19 pm
Hi Brian,

Getting a loan with a credit score between 518 and 550 is not possible keeping in mind the present market situation. In case of a conventional loan, borrowers should have a credit score of around 680 and for FHA loan, the borrowers should have a minimum credit score of 580. I think your sister in law should first try to improve her credit score and then apply for loans. To know more about how to improve credit score, check out the following link:
http://www.mortgagefit.com/credit-rating/credit-repair.html

Thanks
Posted on: 17th Feb, 2009 07:48 pm
Getting a loan with that credit score is not impossible, however you will need a larger down payment.
Posted on: 17th Feb, 2009 08:02 pm
Hi,

Yes, I agree with the previous answer by jameshogg. Those scores would have easily gotten your sis n law a mortgage pre-subprime melt down. Not only is the country going to have to change the way it operates, so are individuals. This means understanding how important maintaining your credit has become. Paying debt on time does not guarantee a good credit score, there are at least four other factors to consider.

..As a side note, she could always take the down payment and use on a smaller house til their credit improves.

[Link deleted as per forum rules. Thanks.]
Posted on: 19th Feb, 2009 09:33 am
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