Posted on: 11th Mar, 2011 03:22 pm
I am a first time home buyer (potentially). The house I have in mind is a foreclosure at 37,000 (asking price). It needs work (heat pump, cosmetic, and some shingle work). A high estimate to have all of this done by a contractor is 9,000. I'm trying to stay at or below 40,000 if possible.
I've been to my bank and a mortgage broker and was denied pre-approval both times based on the fact that I only have one current line of credit at 2 months and one complete line of credit at 25 months. My credit score is okay (600's). My problem is that I keep running into problems with the amount of credit i have(not the score). What I would like to know is, is there any loan out there for somone like me. we tried conventional (bank) and 203k(broker), but couldn't get approved based on that. Even in it's current condition I would think the value of the property is ver 40,000. Most of the work I could do myself at minimal cost. It is an option to include the cost of a professional contractor in the loan cost to get the work fixed, or not.... It really doesn't matter to me. I just need a loan... where should I go or look?
I've been to my bank and a mortgage broker and was denied pre-approval both times based on the fact that I only have one current line of credit at 2 months and one complete line of credit at 25 months. My credit score is okay (600's). My problem is that I keep running into problems with the amount of credit i have(not the score). What I would like to know is, is there any loan out there for somone like me. we tried conventional (bank) and 203k(broker), but couldn't get approved based on that. Even in it's current condition I would think the value of the property is ver 40,000. Most of the work I could do myself at minimal cost. It is an option to include the cost of a professional contractor in the loan cost to get the work fixed, or not.... It really doesn't matter to me. I just need a loan... where should I go or look?
Hi Guest,
Welcome to Mortgage fit,
If you are employed and can show some good employment history then I do not think that you will have to face any problem securing a loan.But As far securing a loan with low down payment is the key.So In my advice you should wait for some more time till the time you reach a minimum required score of 620 for a FHA loan.It may take 2-3 months but it is advisable to wait for that period.Apart from this all the other loans could be available but surely not advisable to opt for due to high interest rates...
DIPA
Welcome to Mortgage fit,
If you are employed and can show some good employment history then I do not think that you will have to face any problem securing a loan.But As far securing a loan with low down payment is the key.So In my advice you should wait for some more time till the time you reach a minimum required score of 620 for a FHA loan.It may take 2-3 months but it is advisable to wait for that period.Apart from this all the other loans could be available but surely not advisable to opt for due to high interest rates...
DIPA