Posted on: 03rd May, 2007 02:57 pm
Hi
does any one have names of lenders that will offer a mortgage loan to people who have scores under 500 and is willing to work with them? Alo, what about hard money lenders? How do you rate them and should we use them? Has anyone used them yet? How does all this mortgage work anyways?
does any one have names of lenders that will offer a mortgage loan to people who have scores under 500 and is willing to work with them? Alo, what about hard money lenders? How do you rate them and should we use them? Has anyone used them yet? How does all this mortgage work anyways?
Hard money lenders offer loans with quite higher rates than normal for people with poor credit profile and other negatives. You should not go for hard money loans and first look for options you have like fha loans with do not consider scores as the main important factor.
In your situation when your credit score is not good you need to look for mycommunitymortgage from fannie mae or fha loan. These have maximum loan and income limits but do not factor in the credit score as THE most important factor to qualify you for a loan. Avoid hard money lenders if possible as then rates will be higher.
BTW, how much loan are you looking for and your other details like income, total monthly debts, how much down payment you would be able to make?
Miller
BTW, how much loan are you looking for and your other details like income, total monthly debts, how much down payment you would be able to make?
Miller
Hi Miller,
well, it is close to 250,000, we have the income to cover the mortgage every month and can actually breathe somewhat freely. We were hoping to down the 5%. We can make about $2500 a month for mortgage including all the goody stuff like ins. and all that.
well, it is close to 250,000, we have the income to cover the mortgage every month and can actually breathe somewhat freely. We were hoping to down the 5%. We can make about $2500 a month for mortgage including all the goody stuff like ins. and all that.
I will also say the same thing as others that you can get a mortgage in spite of a low credit score but then for an fha mortgage you will have to make 3% downpayment.
Good thing is that you can also avail downpayment assistance programs which are available to fha borrowers.
Good thing is that you can also avail downpayment assistance programs which are available to fha borrowers.
Hi Midgel,
well, unfortunately, our house amount is past that limit, so we cannot use the fha. I wish, it would have made things soo much better!!!
well, unfortunately, our house amount is past that limit, so we cannot use the fha. I wish, it would have made things soo much better!!!
Hard Money requires a max loan to vaule of 65-70% or 30-35% down. What is the credit history over the last 12 months how much are outstanding collections.
mycommunitymortgage of fannie mae can be helpful for you, and allows for extra flexibilty on credit histories..
There is no way that a mycommunity or Fannie mae loan will work......because there isn't a PMI company out there that will insure the loan and if they do the PMI will about as much as the mortgage payment. Sorry to be so blunt but FHA,ACORN and NACA are about the only programs available....
But Cedric I had heard that this fannie mae program can have ltv of 100%, if it is true then pmi will not be necessary. does that option has changed now? I might be having old info
"well, unfortunately, our house amount is past that limit, so we cannot use the fha. "
Which state are you in? Did you check the fha loan limits for your state?
Miller
Which state are you in? Did you check the fha loan limits for your state?
Miller
"Hi Miller,
well, it is close to 250,000, we have the income to cover the mortgage every month and can actually breathe somewhat freely. We were hoping to down the 5%. We can make about $2500 a month for mortgage including all the goody stuff like ins. and all that.
_________________
Thank you,
DiMpLeS =)"
Well NACA loan limits are similar to what FHA loans have, so it is also not suitable for you as it will be over the limit as you had said the fha will be. But you can still check to know if your loan will be below the maximum limit or not. However, you can go through the acorn Homebuyer's Program to see if you would qualify- http://acornhousing.org/TEXT/homebuying1.php
Colin
well, it is close to 250,000, we have the income to cover the mortgage every month and can actually breathe somewhat freely. We were hoping to down the 5%. We can make about $2500 a month for mortgage including all the goody stuff like ins. and all that.
_________________
Thank you,
DiMpLeS =)"
Well NACA loan limits are similar to what FHA loans have, so it is also not suitable for you as it will be over the limit as you had said the fha will be. But you can still check to know if your loan will be below the maximum limit or not. However, you can go through the acorn Homebuyer's Program to see if you would qualify- http://acornhousing.org/TEXT/homebuying1.php
Colin
Hi Miller
no we are not eligible our house costs more
no we are not eligible our house costs more
"Hi Miller
no we are not eligible our house costs more"
If the house costs more then you have check the programs other members have suggested and let us know what happens.
Miller
no we are not eligible our house costs more"
If the house costs more then you have check the programs other members have suggested and let us know what happens.
Miller