Me and my husband both have credit scores of around mid 500s. We know that we need around a 620 to get a home loan. Any one know of any lenders that bend that? We have found the home we want to purchase and dont want to wait for it to be sold. Thank you!
You do not need a 620~
Yes You can get a loan, but the rate will vary. You didn’t say if you have a down payment.
If you have a 20% down, the loan wont be that bad. If you have no down, it might be possible at a high rate.
It goes in 5% increments. If you can come up with 5% or 10% down, your options will be better, depending on your other debt.
You need to find an honest ethical mortgage broker who can explain your options.
You are going to be looking at a subprime lender with a 2 or 3 year prepay. Understand your loan terms before you sign docs.
Depends on if you have any money for down payment. With credit scores in the 500′s you will need a hefty down.
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RE Broker
Yes, if you have steady employment for the last 2 years and 5% down pmt. You can get FHA loan. Good Luck!
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Sure if you want to pay an UNGODLY HIGH %%%% rate and your payments end up being over 1500/month instead of 500.
Do something about IMPROVING your ratings first.
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It would be difficult to find a lender with that level of credit. And probably they would require a fairly high down payment to ensure you have equity, and/or demand a high interest rate.
As a previous poster has said, it may be better to do something to improve your credit score first.
Something as easy as paying off a credit card, or returning a car on a lease, etc, will help tremendously. If you are paying monthly installments on furniture, TVs, computers, etc. consider trying to pay those off as quickly as possible.
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You do not need a 620~
Yes You can get a loan, but the rate will vary. You didn’t say if you have a down payment.
If you have a 20% down, the loan wont be that bad. If you have no down, it might be possible at a high rate.
It goes in 5% increments. If you can come up with 5% or 10% down, your options will be better, depending on your other debt.
You need to find an honest ethical mortgage broker who can explain your options.
You are going to be looking at a subprime lender with a 2 or 3 year prepay. Understand your loan terms before you sign docs.
References :
Yes you can get a loan. The more you have down, the better your income to debt ratio is, the better your chances.
FHA can help in some situations. Get an ARM that won’t adjust for at least 3 or 5 years. If you keep your nose clean, you will be able to refinance in 1-2 years, and get a better rate. For now, you may be stuck with something like 10% or more, but it’s better than not having a house.
Try CountryWide or Wells Fargo. They’ve helped out people I know. And they are reputable, which you really need.
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