Posted on: 29th Aug, 2007 07:03 pm
Score of 504, how hard would it be to obtain a mortgage?
Hi Jflowerstn,
Welcome to the forum.
It seems that your credit score is very low. But nowadays, there are many organizations who offer loans even with a low score. You may go for loans from FHA or Fannie Mae. These organizations provides loan for people with low FICO scores.
But before considering a loan, you must try to improve your score. For this, you must make all your payments on time. To know on how to repair credit, you may refer to http://www.mortgagefit.com/credit-rating/credit-repair.html
Welcome to the forum.
It seems that your credit score is very low. But nowadays, there are many organizations who offer loans even with a low score. You may go for loans from FHA or Fannie Mae. These organizations provides loan for people with low FICO scores.
But before considering a loan, you must try to improve your score. For this, you must make all your payments on time. To know on how to repair credit, you may refer to http://www.mortgagefit.com/credit-rating/credit-repair.html
I thought that with the way the market conditions are it would be hard to get a mortgage with a low credit score?
Yes Wildstorm, it won't be that easy to get a mortgage with bad credit. Even good credit borrowers are being denied loans just because they do not fulfill all criteria (debt-to-income ratio etc...).
Lenders all over US are tightening rules and more laws are being enforced to get control over the credit crunch. But mere laws won't help, these need to be implemented at all levels of the industry - among the borrowers, lenders and all professionals so that frauds and scams can be prevented.
It's important at this moment to get rid of scams committed by borrowers as well as lenders. I mean if borrowers are using false documents, aren't the lenders that aware enough of such a fraud going on? At least, those who've been in the industry since a long time must be. So, that's the scenario here with some big companies getting bankrupt and this has affected the entire financial market. So, if someone has low score, he may be denied loan and that won't be surprising enough.
I hope this information helps..
Regards,
Jessica.
Lenders all over US are tightening rules and more laws are being enforced to get control over the credit crunch. But mere laws won't help, these need to be implemented at all levels of the industry - among the borrowers, lenders and all professionals so that frauds and scams can be prevented.
It's important at this moment to get rid of scams committed by borrowers as well as lenders. I mean if borrowers are using false documents, aren't the lenders that aware enough of such a fraud going on? At least, those who've been in the industry since a long time must be. So, that's the scenario here with some big companies getting bankrupt and this has affected the entire financial market. So, if someone has low score, he may be denied loan and that won't be surprising enough.
I hope this information helps..
Regards,
Jessica.
"I thought that with the way the market conditions are it would be hard to get a mortgage with a low credit score?"
Yes not many would be listening to borrower. Even if someone is willing to finance they are going to ask for quite high interest rate which can make the payments difficult for the borrower.
Miller
Yes not many would be listening to borrower. Even if someone is willing to finance they are going to ask for quite high interest rate which can make the payments difficult for the borrower.
Miller
As Larry said fha is one option to look at for people with bad credit.
But for fha loans also there are other requirements that applicant should fulfill.
Another option that Larry was talking about is the MyCommunityMortgage from Fannie Mae. They allow for flexibility on credit histories and also accept nontraditional credit.
But for fha loans also there are other requirements that applicant should fulfill.
Another option that Larry was talking about is the MyCommunityMortgage from Fannie Mae. They allow for flexibility on credit histories and also accept nontraditional credit.
As Larry said fha is one option to look at for people with bad credit.
But for fha loans also there are other requirements that applicant should fulfill.
Another option that Larry was talking about is the MyCommunityMortgage from Fannie Mae. They allow for flexibility on credit histories and also accept nontraditional credit.
Does the Fannie Mae thing also look for equity in the home?
But for fha loans also there are other requirements that applicant should fulfill.
Another option that Larry was talking about is the MyCommunityMortgage from Fannie Mae. They allow for flexibility on credit histories and also accept nontraditional credit.
Does the Fannie Mae thing also look for equity in the home?
Any lender would require that wildstorm_films
Hi Wildstorm,
To qualify for a loan, you must have equity in your home. Most lenders consider it as an important factor.
To qualify for a loan, you must have equity in your home. Most lenders consider it as an important factor.
Hi Brat,
Did you ask the lender why he is denying you a cash out refinance? How is the real estate market in your neighborhood? If the real estate market in your neighborhood has declined, then the lender may think twice before giving the loan. He may doubt whether you will be able to pay off the loan or not. Moreover, you should opt for cash out refinance when you find that the current market rate is lower than the current interest rate of the mortgage.
Thanks,
Jerry
Did you ask the lender why he is denying you a cash out refinance? How is the real estate market in your neighborhood? If the real estate market in your neighborhood has declined, then the lender may think twice before giving the loan. He may doubt whether you will be able to pay off the loan or not. Moreover, you should opt for cash out refinance when you find that the current market rate is lower than the current interest rate of the mortgage.
Thanks,
Jerry
brat, your best bet is to find an fha lender. currently, you can do a cash out refinance up to 95% of the value of your home. based on the numbers you've provided, your ratio would be 91%. adding in your closing costs, if you need to do that, would raise the ratio a bit, but if you're a qualified borrower, this scenario ought to work out for you.
