Posted on: 26th Dec, 2008 07:46 am
i am looking for a small mortgage to finance a hud foreclosure. my credit is not good as i have been a single parent for 12 years. i have no foreclosures or bankruptcies and i have kept my head above the line, but that's all. i get no response on my inquiries and am starting to feel defeated. any suggestions?
lebryden
lebryden
lebryden, in order to provide a more detailed and better answer to your query, more information is needed.
you indicate your credit is "not good." what we need to know to suggest anything is just how not good it is. also, what other factors exist that would make a lender look more favorably on you? do you have long-term, stable employment? do you have a few dollars in the bank, or the opportunity to obtain gift funds? are there collection accounts that remain unpaid, or judgments against you? these are all critical items.
it's odd to me that you "get no response to your inquiries," since any lender with any sense at all will have the decency to let you know what, why, when, etc. concerning your inquiry.
don't feel defeated until such time as you've actually had the opportunity to plead your case to someone who will provide you a reasonable explanation for denial, or who will make suggestions as to how you might improve your chances.
you indicate your credit is "not good." what we need to know to suggest anything is just how not good it is. also, what other factors exist that would make a lender look more favorably on you? do you have long-term, stable employment? do you have a few dollars in the bank, or the opportunity to obtain gift funds? are there collection accounts that remain unpaid, or judgments against you? these are all critical items.
it's odd to me that you "get no response to your inquiries," since any lender with any sense at all will have the decency to let you know what, why, when, etc. concerning your inquiry.
don't feel defeated until such time as you've actually had the opportunity to plead your case to someone who will provide you a reasonable explanation for denial, or who will make suggestions as to how you might improve your chances.
Thank you, George, For your reply.
I don't know exactly how "not good" it is other than I was in a bad car wreck a couple of years ago and things got out of hand. I have no revolving accounts, no car loans, I just have my utilities and home payments.
I have filled out many loan inquiries on-line and thought that I would at least get a feel for what my situation would be, but really have gotten no response.
The House I am chasing is important to me. It is a foreclosure that I have been watching go through the system and is finally where I can bid but they want a financial letter. It is a modular home on a permanent foundation and land of its own, at 50,000. We want to bid less.
I have stable employment, no money in the bank, I have no clue what gift funds are (except my family help with the down payment?), no judgments, but medical bills unpaid.
My children are on their own and I am finally looking to do something for me. This house will actually save me $400.00 a month.
Thank you again for your time.
Lenore
I don't know exactly how "not good" it is other than I was in a bad car wreck a couple of years ago and things got out of hand. I have no revolving accounts, no car loans, I just have my utilities and home payments.
I have filled out many loan inquiries on-line and thought that I would at least get a feel for what my situation would be, but really have gotten no response.
The House I am chasing is important to me. It is a foreclosure that I have been watching go through the system and is finally where I can bid but they want a financial letter. It is a modular home on a permanent foundation and land of its own, at 50,000. We want to bid less.
I have stable employment, no money in the bank, I have no clue what gift funds are (except my family help with the down payment?), no judgments, but medical bills unpaid.
My children are on their own and I am finally looking to do something for me. This house will actually save me $400.00 a month.
Thank you again for your time.
Lenore
lenore, if you have a credit score of 580 or more, you'll stand a decent chance of being approved for an fha mortgage. the reason i state that score as a minimum is that most lenders use automated underwriting - a fancy term for computerized analysis that gives us a decision to approve or decline a loan.
with a score of 580 or greater, and other factors being favorable (percentage of monthly payment in comparison with income, for example), you may receive an automated approval. honestly, there are many lenders who will still look at lower scores, but the approval process is more difficult in those cases.
that you have no existing debts is not necessarily a hindrance. that, of course, leads to the next question: are you lacking in credit in general? by that, i mean, do you have no experience with revolving or automobile debt at all? if that's true, you may have no score whatsoever. in those cases, you can generally qualify by providing alternative sources of credit, such as a landlord, utilities, phone usage and other similar types of credit.
job stability is a very good thing - not sure "stability" is a word we can use here in december of 2008, though. as for no money in the bank, i presume you mean that what little is in there is already spoken for on a regular basis. gift funds are precisely what you interpreted them as - funds given to you by family for your use in the purchase of a home, not requiring payback. it is a highly favorable thing to have more than is needed for the purchase, since having a reserve fund after the purchase is not just a nice thing, but often will allow an approval rather than a decline.
the property you described is qualified for financing, so i'd encourage you at this time not to give up in your quest. i'm not certain what "inquiries on-line" entail, but what you really need to do is to have a serious discussion with a real lender to determine if you have a reasonable shot at this.
please feel free to come back with any other questions you might have.
with a score of 580 or greater, and other factors being favorable (percentage of monthly payment in comparison with income, for example), you may receive an automated approval. honestly, there are many lenders who will still look at lower scores, but the approval process is more difficult in those cases.
that you have no existing debts is not necessarily a hindrance. that, of course, leads to the next question: are you lacking in credit in general? by that, i mean, do you have no experience with revolving or automobile debt at all? if that's true, you may have no score whatsoever. in those cases, you can generally qualify by providing alternative sources of credit, such as a landlord, utilities, phone usage and other similar types of credit.
job stability is a very good thing - not sure "stability" is a word we can use here in december of 2008, though. as for no money in the bank, i presume you mean that what little is in there is already spoken for on a regular basis. gift funds are precisely what you interpreted them as - funds given to you by family for your use in the purchase of a home, not requiring payback. it is a highly favorable thing to have more than is needed for the purchase, since having a reserve fund after the purchase is not just a nice thing, but often will allow an approval rather than a decline.
the property you described is qualified for financing, so i'd encourage you at this time not to give up in your quest. i'm not certain what "inquiries on-line" entail, but what you really need to do is to have a serious discussion with a real lender to determine if you have a reasonable shot at this.
please feel free to come back with any other questions you might have.
Hi George, Again Thank you for your reply. I spoke with Countrywide today and I don't qualify for their FHA. Reason being as you stated, I don't have any revolving credit. (I had a messy divorce and didn't want to cause myself more problems).
I will take your advice and sit down with someone and figure what is needed to pull this off. It is important to me and I will work hard to achieve it.
Do you know of any Lender's that will "listen"? I know that the automated underwriting is the way now but is there any one that might listen?
Thank you again, Lenore
I will take your advice and sit down with someone and figure what is needed to pull this off. It is important to me and I will work hard to achieve it.
Do you know of any Lender's that will "listen"? I know that the automated underwriting is the way now but is there any one that might listen?
Thank you again, Lenore
Keeping in mind the market situation, the lenders have come up with strict rules. I don't think they will listen to you. You will have to improve your credit and then you can try for mortgage.
to say that nobody will listen is a little bit harsh. we've been listening on here, after all (and will continue to do so).
my guess is that countrywide actually obtained your credit report, saw a score that is below 580 and gave you essentially the same answer that i had above. automated underwriting looks for a specific score and anything less is much less likely to work. is that what happened, lenore?
if so, you'll need to boost your score to get a lender to consider you for an approval. those medical bills you mentioned would need to be paid no matter what, so it's a good idea to attack them as quickly as you can. call the creditors and try to negotiate a settlement for less than the balance owed. if the score is, indeed, below 580, it's going to take some time to bump it up.
you also mentioned that you have no open revolving accounts, etc. this is not helpful, actually. what you'll be smart to do is to seek out a secured credit card (do not go online looking!). see if there's a credit union near you that offers you membership and see if they offer a secured visa or mastercard. what that means is that you deposit $300 or so in a savings account, and they will put a hold on that amount to cover themselves in the event you don't pay the credit card bills (which of course you will). then, begin using the card - very rarely and only in small amounts - and pay it back each month. this is going to take a little time and won't be of much help in your efforts to buy the modular home you mentioned. however, having this card and paying it properly will have a favorable effect on your credit.
i'm afraid that this particular home may not work out at this time (it seems) but over time, you'll build your creditworthiness and be ready in the not-too-distant future.
let me know if i'm wrong about my analysis about countrywide and what they know and what they told you.
my guess is that countrywide actually obtained your credit report, saw a score that is below 580 and gave you essentially the same answer that i had above. automated underwriting looks for a specific score and anything less is much less likely to work. is that what happened, lenore?
if so, you'll need to boost your score to get a lender to consider you for an approval. those medical bills you mentioned would need to be paid no matter what, so it's a good idea to attack them as quickly as you can. call the creditors and try to negotiate a settlement for less than the balance owed. if the score is, indeed, below 580, it's going to take some time to bump it up.
you also mentioned that you have no open revolving accounts, etc. this is not helpful, actually. what you'll be smart to do is to seek out a secured credit card (do not go online looking!). see if there's a credit union near you that offers you membership and see if they offer a secured visa or mastercard. what that means is that you deposit $300 or so in a savings account, and they will put a hold on that amount to cover themselves in the event you don't pay the credit card bills (which of course you will). then, begin using the card - very rarely and only in small amounts - and pay it back each month. this is going to take a little time and won't be of much help in your efforts to buy the modular home you mentioned. however, having this card and paying it properly will have a favorable effect on your credit.
i'm afraid that this particular home may not work out at this time (it seems) but over time, you'll build your creditworthiness and be ready in the not-too-distant future.
let me know if i'm wrong about my analysis about countrywide and what they know and what they told you.
to say that nobody will listen is a little bit harsh. we've been listening on here, after all (and will continue to do so).
my guess is that countrywide actually obtained your credit report, saw a score that is below 580 and gave you essentially the same answer that i had above. automated underwriting looks for a specific score and anything less is much less likely to work. is that what happened, lenore?
if so, you'll need to boost your score to get a lender to consider you for an approval. those medical bills you mentioned would need to be paid no matter what, so it's a good idea to attack them as quickly as you can. call the creditors and try to negotiate a settlement for less than the balance owed. if the score is, indeed, below 580, it's going to take some time to bump it up.
you also mentioned that you have no open revolving accounts, etc. this is not helpful, actually. what you'll be smart to do is to seek out a secured credit card (do not go online looking!). see if there's a credit union near you that offers you membership and see if they offer a secured visa or mastercard. what that means is that you deposit $300 or so in a savings account, and they will put a hold on that amount to cover themselves in the event you don't pay the credit card bills (which of course you will). then, begin using the card - very rarely and only in small amounts - and pay it back each month. this is going to take a little time and won't be of much help in your efforts to buy the modular home you mentioned. however, having this card and paying it properly will have a favorable effect on your credit.
i'm afraid that this particular home may not work out at this time (it seems) but over time, you'll build your creditworthiness and be ready in the not-too-distant future.
let me know if i'm wrong about my analysis about countrywide and what they know and what they told you.
guess who! this was my post - neglected to login
my guess is that countrywide actually obtained your credit report, saw a score that is below 580 and gave you essentially the same answer that i had above. automated underwriting looks for a specific score and anything less is much less likely to work. is that what happened, lenore?
if so, you'll need to boost your score to get a lender to consider you for an approval. those medical bills you mentioned would need to be paid no matter what, so it's a good idea to attack them as quickly as you can. call the creditors and try to negotiate a settlement for less than the balance owed. if the score is, indeed, below 580, it's going to take some time to bump it up.
you also mentioned that you have no open revolving accounts, etc. this is not helpful, actually. what you'll be smart to do is to seek out a secured credit card (do not go online looking!). see if there's a credit union near you that offers you membership and see if they offer a secured visa or mastercard. what that means is that you deposit $300 or so in a savings account, and they will put a hold on that amount to cover themselves in the event you don't pay the credit card bills (which of course you will). then, begin using the card - very rarely and only in small amounts - and pay it back each month. this is going to take a little time and won't be of much help in your efforts to buy the modular home you mentioned. however, having this card and paying it properly will have a favorable effect on your credit.
i'm afraid that this particular home may not work out at this time (it seems) but over time, you'll build your creditworthiness and be ready in the not-too-distant future.
let me know if i'm wrong about my analysis about countrywide and what they know and what they told you.
guess who! this was my post - neglected to login