Posted on: 23rd Jul, 2008 08:48 am
Are there any lenders that are willing to loan money to a mid 500 score?
I have a residence already, i am looking to downsize, the value of the home is @$300,000, i owe $250,000. I am wanting to move to a house that is $125,000, but valued @160,000. I have not sold my current home yet, and have within the last year fallen behind, but have since caught up and am current on my loan. The problem is my score is 519, and i would like to purchase the new house before selling current one.
I have a residence already, i am looking to downsize, the value of the home is @$300,000, i owe $250,000. I am wanting to move to a house that is $125,000, but valued @160,000. I have not sold my current home yet, and have within the last year fallen behind, but have since caught up and am current on my loan. The problem is my score is 519, and i would like to purchase the new house before selling current one.
I don't know of any lenders for your situation. That'll be tough in today's market. Gotta work on getting that score up.
There are a couple of problems with your scenario;
1. since you are currently in default you'll have to have money to put down
2. Lenders have gotten wise to this new phonomenom called "buy and bail" where you get a new loan stating that you will sell the old one, but you really just let the old one foreclose after you get into the new one. I'm not saying this is what you would do, I'm just making you aware of the fact that this is how they will initially view your situation.
1. since you are currently in default you'll have to have money to put down
2. Lenders have gotten wise to this new phonomenom called "buy and bail" where you get a new loan stating that you will sell the old one, but you really just let the old one foreclose after you get into the new one. I'm not saying this is what you would do, I'm just making you aware of the fact that this is how they will initially view your situation.
Hello akump and welcome to the forum. I think it would be very wise for you to consider slowing down on the urge to buy another home right now. As Sweeny said you have to work on your credit first.
Another problem you might run into is your debt to income ratio. Based on the information you provided it seems you're having some troubles keeping up with your bills as it is.
Just an idea but you might consider finding someone who is will to write up an article of agreement where they would be willing to rent your home for a year and then take a loan out to buy it from you. Ofcourse you'll have to rent yourself for a year but you can find a more affordable place, and with the rental income showing this may help your d/i when it comes time for you to take out a mortgage. In the meantime you can keep hammering away at your credit so you can qualify for a better interest rate.
Best of luck to you!
Another problem you might run into is your debt to income ratio. Based on the information you provided it seems you're having some troubles keeping up with your bills as it is.
Just an idea but you might consider finding someone who is will to write up an article of agreement where they would be willing to rent your home for a year and then take a loan out to buy it from you. Ofcourse you'll have to rent yourself for a year but you can find a more affordable place, and with the rental income showing this may help your d/i when it comes time for you to take out a mortgage. In the meantime you can keep hammering away at your credit so you can qualify for a better interest rate.
Best of luck to you!
That's right Scott, Akump needs to wait till he can improve his score. A mid 550 score will take him nowhere.
Well Akump, I suggest that you stay in a rented apartment for a while and sell off your property. It will take time before your credit score improves. try paying all your bills in time and avoid being late on any of your financial obligations; just keep paying them in time. And when the score gets to around 660, you may try for a conventional loan.
However, if it's that urgent, you may look out for FHA loans when your score gets to somewhere around 550-580. To raise your score, you may check out the Credit repair tool .
Regards,
Jessica.
Well Akump, I suggest that you stay in a rented apartment for a while and sell off your property. It will take time before your credit score improves. try paying all your bills in time and avoid being late on any of your financial obligations; just keep paying them in time. And when the score gets to around 660, you may try for a conventional loan.
However, if it's that urgent, you may look out for FHA loans when your score gets to somewhere around 550-580. To raise your score, you may check out the Credit repair tool .
Regards,
Jessica.
Fix your credit.
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