Posted on: 24th Nov, 2007 11:28 am
I need to obtain financing for a property recently bid on in a auction. It went a little higher than I expected. I need to close this deal by mid December but my credit is not so good. Please help with any suggestions.
Hello and welcome to Mortgage fit.
You are absolutely correct. To obtain financing the borrower needs to have good credit. Most lenders will not offer any financing to borrowers with credit score 500 and below.
With a 500 score you should consider a co-borrower with good credit to obtain the loan.
A year ago when there were sub-prime lenders, people with scores 500 to 400, were able to get financing. But, with the crack down on subprime lenders, they have become obsolete. Now, most lenders have closed down there subprime lending department.
Hope this helped.
Thanks,
Jean
Loan Officer
You are absolutely correct. To obtain financing the borrower needs to have good credit. Most lenders will not offer any financing to borrowers with credit score 500 and below.
With a 500 score you should consider a co-borrower with good credit to obtain the loan.
A year ago when there were sub-prime lenders, people with scores 500 to 400, were able to get financing. But, with the crack down on subprime lenders, they have become obsolete. Now, most lenders have closed down there subprime lending department.
Hope this helped.
Thanks,
Jean
Loan Officer
Define bad credit.
If you have scores below 600 and no late payments within last year (or in some cases one or 2) you might still be qualified for FHA mortgage.
If you have a sizable downpayment and assets this may help as well.
Basically i would contact areputable lender that can do FHA to see if you qualify for anything.
If you have scores below 600 and no late payments within last year (or in some cases one or 2) you might still be qualified for FHA mortgage.
If you have a sizable downpayment and assets this may help as well.
Basically i would contact areputable lender that can do FHA to see if you qualify for anything.
Below 500 scores can still be done through some banks considering there is no score requirement. Although rare, they are available. Understand also, non traditional forms of credit can also be used, such as cell phone bills, utilities, home phone, insurance, ect. You will also need to write explanation letters on collections, poor history, and so forth. There are also still non prime programs available is needed to offer you assistance but know they are much higher in rate and points. Also requireing more $ down.
Hi Olhill,
Welcome to this forum.
The above posters have given some very good information and suggestions. You can try out FHA loans. FHA loans are not score driven. These loans depend more on debt to income ratio. You should have around 41% debt to income ratio to qualify for the FHA loan. You can also consider trying out programs offered by ACORN Housing and MyCommunity Mortgage.
Hope this will help you. Feel free to ask if you have any further questions.
Thanks,
Larry
Welcome to this forum.
The above posters have given some very good information and suggestions. You can try out FHA loans. FHA loans are not score driven. These loans depend more on debt to income ratio. You should have around 41% debt to income ratio to qualify for the FHA loan. You can also consider trying out programs offered by ACORN Housing and MyCommunity Mortgage.
Hope this will help you. Feel free to ask if you have any further questions.
Thanks,
Larry
"I need to obtain financing for a property recently bid on in a auction. It went a little higher than I expected. "
I have a question? Did you bid on an auctioned property without having financing first?
I have a question? Did you bid on an auctioned property without having financing first?
It really just depends on how bad your credit is and how much of a down payment you have. Contact a mortgage broker to discuss your options.