Posted on: 28th Nov, 2008 06:12 am
i need a mortgage for 42,000.00 I found a house that was foreclosed on, the home value is 125,000.00. my score is 500, i have already hired alawyer to correct repeated errors on my report and items that were caused by 911,no work and got typhoid 2 weeks later unable to work for 4 years and credit that is not mine, 10 items have already been removed by me but the score did not change(why)thats when i decided to get the lawyer, i have good home and auto credit(i do not have the home ,however i was joint on the loan for 33 years it has been paid with 0 late for 33 years. I need this loan now or lose this home,the lawyer said he could get most removed, i can't wait a month
Hi msbattlingboop!
Welcome to forums!
Keeping in mind the present market situation, it will be difficult for you to get a mortgage with a low credit score of 500. Even if you want to get a FHA loan, you will need a credit score of 580. So I think you should patiently wait for a month and let your credit score improve.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
Keeping in mind the present market situation, it will be difficult for you to get a mortgage with a low credit score of 500. Even if you want to get a FHA loan, you will need a credit score of 580. So I think you should patiently wait for a month and let your credit score improve.
Feel free to ask if you have further queries.
Sussane
Hi msbattlingboop..welcome to Mortgagefit!
Remember that FHA doesnt have a credit score requirement, but FHA lenders may impose a minimum score like Smithsussane has indicated.
I would try to work with a credit repair specialist before applying for a mortgage. In the meantime I would look to save at least 3% for the down payment.
With FHA you can't have any credit lates i nthe last 12months.
Make sure to clean up your credit file before applying.
Otherwise you'll just have a bunch of lenders pulling your score, and telling you no
Please tell us how things workout
thanks
Robert
Remember that FHA doesnt have a credit score requirement, but FHA lenders may impose a minimum score like Smithsussane has indicated.
I would try to work with a credit repair specialist before applying for a mortgage. In the meantime I would look to save at least 3% for the down payment.
With FHA you can't have any credit lates i nthe last 12months.
Make sure to clean up your credit file before applying.
Otherwise you'll just have a bunch of lenders pulling your score, and telling you no
Please tell us how things workout
thanks
Robert
I would like to know if I will qualify for a loan to purchase my home which will cost at least 235,000.00. While my credit score is 589 I am working on paying two of my credit cards and perty soon my debt for my current mortage loan will be paid off. will I still qualify for FHA if I am going through EMINENT DOMAIN (Property taken to be used for bulding school)
hi leticia ,
Its ok that your score is not that good but can you tell me that you had any past history of debt which is not paid on time??
Are you employed full time? Most of the lenders do go for the appraisal on the sole basis that the person should have at least 20 yrs of his service remaining.Nobody gives a fresh loan without mortgage to the person who is of 45 yrs old.
So age is also a main criterion while deciding the loan amount. :wink:
Its ok that your score is not that good but can you tell me that you had any past history of debt which is not paid on time??
Are you employed full time? Most of the lenders do go for the appraisal on the sole basis that the person should have at least 20 yrs of his service remaining.Nobody gives a fresh loan without mortgage to the person who is of 45 yrs old.
So age is also a main criterion while deciding the loan amount. :wink:
leticia if the property you are interested in buying is being taken by eminent domain for the building of a school, why in the world would you want to purchase it? am i missing something?
as for the credit score, you might find a lender who can work with 580, but more likely they'll all want at least 600, and the predominant new number is 620 for fha financing, as well as for conventional.
manoj - what you describe in your post is blatantly discriminatory. there is no lender in the united states who would deny a loan to a person based on age. age is NOT a criterion in lending. please get your facts straight before you spout off.
as for the credit score, you might find a lender who can work with 580, but more likely they'll all want at least 600, and the predominant new number is 620 for fha financing, as well as for conventional.
manoj - what you describe in your post is blatantly discriminatory. there is no lender in the united states who would deny a loan to a person based on age. age is NOT a criterion in lending. please get your facts straight before you spout off.
That is simply umbelievable. Posts like that ruin Mortgage Fit. People are coming here for legitimate advice. When the see ridiculous posts then they will go elsewhere for mortgage solutions.
I'd like to purchase my first home. I want to apply for a loan, but do not want an inquiry on my credit report unless I know for sure I will qualify. My question is can I qualify for a loan in the range of $100,000-$115,000?
My credit score is 644 (equifax)/651 (TU)/unknown (experian), annual income is $24,500 with current employer for past 2 years. I have about $9,000 in my savings account. I know I can more than likely qualify for a loan, but does anyone know if I can qualify for a loan in the range I want above? Thank you for any replies.
My credit score is 644 (equifax)/651 (TU)/unknown (experian), annual income is $24,500 with current employer for past 2 years. I have about $9,000 in my savings account. I know I can more than likely qualify for a loan, but does anyone know if I can qualify for a loan in the range I want above? Thank you for any replies.
st, it's very difficult to know for what you qualify based on that information. what's critical to know is how homes are taxed in your area, and we'd have to try to intuit monthly payments for homeowner's insurance and mortgage insurance as well.
if you borrowed $100K at 5% interest, your monthly payment's going to be $500 on the loan. if adding taxes, insurance and mi brought you up to as much as $750 per month, you'd have a ratio of about 37% and that's too high.
one inquiry on your credit file from a mortgage lender isn't going to kill your scores. you get nowhere by getting vague answers to vague questions about what you may or may not qualify for. you're far better off actually speaking to a lender who can sit down and run your numbers through his own calculator.
if you borrowed $100K at 5% interest, your monthly payment's going to be $500 on the loan. if adding taxes, insurance and mi brought you up to as much as $750 per month, you'd have a ratio of about 37% and that's too high.
one inquiry on your credit file from a mortgage lender isn't going to kill your scores. you get nowhere by getting vague answers to vague questions about what you may or may not qualify for. you're far better off actually speaking to a lender who can sit down and run your numbers through his own calculator.
I am currently looking to purchase my first home and my credit score was 695. I applied for a loan of $265k with a co applicant. Our annual income is $101K. I apllied for said loan and was later denied, now I have a hard inquiry on my credit. What can I do about this. I am currently working with another lender who has suggested that my co applicant clean a couple things off of their credit. Or if possible become an authorized user on someone's credit card who has excellent credit, is this true?
Hi wade,
You cannot do much to remove the hard inquiry from your credit report. You can definitely dispute the hard inquiries which are unauthorized. But this hard inquiry was made for permissible purpose as you had applied for the mortgage. You will have to wait for it to be taken off your credit report. Generally, it will stay on your credit report for about 2 years, but its negative impact on your scores will reduce with passage of time.
Your co-applicant should remove the negative items from his credit report. He needs to have good credit score in order to qualify co-borrow or even co-sign on the loan. Your credit score is good. What are your co-applicant's credit scores? He can also become an authorized user on someone else's credit report. If that person makes his credit card payments on time, it will help your co-applicant improve his credit scores. Similarly, if that person has late payments, it will also affect co-applicant's credit scores adversely. Thus, he needs to make sure that the person has good credit scores and payment history.
You cannot do much to remove the hard inquiry from your credit report. You can definitely dispute the hard inquiries which are unauthorized. But this hard inquiry was made for permissible purpose as you had applied for the mortgage. You will have to wait for it to be taken off your credit report. Generally, it will stay on your credit report for about 2 years, but its negative impact on your scores will reduce with passage of time.
Your co-applicant should remove the negative items from his credit report. He needs to have good credit score in order to qualify co-borrow or even co-sign on the loan. Your credit score is good. What are your co-applicant's credit scores? He can also become an authorized user on someone else's credit report. If that person makes his credit card payments on time, it will help your co-applicant improve his credit scores. Similarly, if that person has late payments, it will also affect co-applicant's credit scores adversely. Thus, he needs to make sure that the person has good credit scores and payment history.
you absolutely cannot eliminate a hard inquiry from a creditor to whom you applied for credit. i didn't see any notation of such an inquiry that was unsolicited, so i'd have to think that a dispute is wasteful. a mortgage inquiry isn't going to have such an adverse impact on your score that you'll see a precipitous drop in any event.
we've been told that becoming an authorized user on someone's account isn't all it was cracked up to be, and that credit agencies are in the process of eliminating that from consideration in calculating a credit score (if they haven't done it already). though it may be helpful, what's really needed is an analysis of what is causing your coborrower's score to be low. you never claimed it to be low, but from your description of the loan denial, i guess we must surmise that was the case.
we've been told that becoming an authorized user on someone's account isn't all it was cracked up to be, and that credit agencies are in the process of eliminating that from consideration in calculating a credit score (if they haven't done it already). though it may be helpful, what's really needed is an analysis of what is causing your coborrower's score to be low. you never claimed it to be low, but from your description of the loan denial, i guess we must surmise that was the case.