A Dude With Bad Credit Trying To Get A Mortgage!
Hi, I got a a score of 607 (Transunion) 516 (Equafax) & 507 (Experian) How can I still get a mortgage with such terrible credit? What is the best financing for me? I got 1K cash for a DP. [ Edited by 20352035 on Date 07/22/2004 ]
[ Edited by 20352035 on Date 07/23/2004 ]
You have a few choices. You can put 20% down. There are lenders that will loan 80%LTV with your scores. Your other choice is to find a seller that is willing to carry a second mortgage. Even then, most lenders will not let the CLTV be above 95% so you will still need 5% down plus closing costs. You can also start disputing negative accounts on your credit report in hopes that you FICO will increase. If you can get your middle score to a 580 or better there are many subprime lenders out there that will loan 100% LTV.
start working with a mortgage broker - not a bank. let them help you build your credit. there are many legal and ethical ways to improve your scores - the 607 must have something significantly different from the others - figure that out and your score will greatly improve.
this will open many doors for you.
the other thing you can do is try to buy on a lease option or seller financing. the deals won;t come to you, but if you put in the effort, you CAN be successful!
Yes it sounds like you are on the deck. But never fear, we live in a land where even C average scholars can rise to high position. And so shall you.
8-)
First examine the three reports and from the high one note the good parts and then query the others to try and raise it.
So far as buying a house. You my dear friend will have to "Play the Edge" You will have to find someone who is about to change position in the financial ladder. He has just lost his job and before he hits the full dirt, perhaps you can take over his position in his small house. Save his credit and give him a small second mortgage for his equity. Smaller the better. Thats the easy way.
Or you might be able to rent a house and tell the nice man you would like to buy it and can he give you a option to buy this house and perhaps, sigh sigh apply a small portion of the rent onto a further purchase downpayment on the house.
What I am saying is, when lacking money one goes to work with ones hands. Also one goes to work with their mouth. You look for deals you can insert.
For Example: In lovely downtrodden Sunland just north of here. We just got one of my ex employees, great digger of ditches and lacer of steel. a small house that looked like it was about to change zip codes on the next wind change. It was a dump, but it did qualify as a house. We got him in for $400 a month. $200 goes toward a future downpayment of $2,000 which means in 10 months. Owner will then take back a wrap around for the balance which is about $24,000.
In the meantime Juan and his wife and his two kids will be working on the house. Every night when he leaves the construction site his truck will be full of little parts, like a new toilet, 2 by 4's nail machine etc. etc. etc. His wife is painting. Oh god was she terrible. But now she is pretty good. Still leaves brush marks like railroad tracks but we have faith.
When the time is up this house will look like something. The doors will actualy shut and windows open. We will either get the owner to take back a long term loan or I will work a refinance and get him one from the friendly bank.
So you see, its just a work out. Use your hands and your mouth. Sort of fun actualy.
Cheers. Lucius
or look for a fsbo or a l/o to get into.......kenmax
Tks a million the suggestions were all golden. I will rise my score this month by paying off all credit card with a loan I just got. Then I will remove all inquires addresses and name www.variations.This should help me get a better interest rate. I want to buy many houses and make many www.Dollars.Money is www.good.God wants us all to be rich.
what is a fsbo or a l/o to get into.......kenmax?
fsbo: For Sale By Owner.
l/o: Lease Option.
Thanks,
OTW
Tks
Ok. I read about the purcahse option and I am interested. What should I do If I found a home and did the purchase option and the first payment is due. I pay rent also can't afford both. Until I find tenant I must pay both. I have a vision of leaving my job next year after I master this good stuff on TCI.
Quote:
On 2004-07-25 03:05, 20352035 wrote:
....... I will rise my score this month by paying off all credit card with a loan I just got. Then I will remove all inquires addresses and name
God said "ask and you shall receive"
Here is a secret that worked for me.
Write letters to the companies who put the inquires there asking them to remove it. If it was unauthrized they should. Call eqifax and ask them to reomove the inquries if it was unauthirized they will. If it was authorized they don't check any way it's not worth the www.time.In both cases it was removed.
Secrets of the millionairs-
Success principle # 3 learn to Ask others for what you need.
Be cautious asking for inquiries to be removed as "unathorized" if you actually obtained credit from the company pulling the inquiry, especially if you want to keep using the credit. A lot of companies take inquiry disputes as symptomatic of identity theft, and immediately close the associated account.