How should I get a mortgage loan with low credit score?

Posted on Aug 19, 2024 in Stated Income Loans

Question by bambam: Does anyone know of mortgage bankers or direct lenders who do low FICO purchases in Maryland?
I am looking to purchase a home in Baltimore County Md. and I am in the process of cleaning my credit . I have limited funds, sale pills therefore I’m looking put as little down as possible.

Best answer:

Answer by unisberkensap
http://www.naca.com

100% financing
5.25% 30 yr fixed rate
credit scores don’t matter
No closing csts

What do you think? Answer below!

A few good mansion pictures I discovered:

Mansion Hotel
mansion
Image by feldpress
Mansion Hotel Grand Opening Could 12, there 2007
Porsche

A lot more fantastic houses click here…

Pittock Mansion | No. 1
mansion
Image by PhotoAtelier (Glen)
I wanted to shot 3x exposure HDR in Pittock Mansion in Portland, price Oregon, but I was told tripods were forbidden. (We’ve all heard that prior to.) Of program there have been stylish ladies wobbling about in higher heels and even an elderly lady creeping along with a walker and that was viewed as just routine stuff. But a tripod, stabilizing device that it is, was an instrument of disaster!

I pressed them on the concern telling them (truthfully) that I shot photographs for regional news e.g. Salem-News.com. The lady told me with a completely straight face that they would let me in before hours as extended as I could offer proof of a million dollars in insurance. So, you happen to be going to see a series of not-so-great photographs shot hand-held at 1600 ISO. Not the greatest setting for my Canon Rebel XT. One particular day they will be sorry they missed the opportunity to have me shoot their museum for free.

If you would like to see a lot more properties click right here…

Mansion Hotel
mansion
Image by feldpress
Mansion Hotel Grand Opening May possibly 12, 2007
Wang Xiaohui

A lot more excellent houses click right here…
Question by unknown11233: How should I get a mortgage loan with low credit score?
Ok here is my situation.
I am trying to get the no income verification loan to buy my first house.
I have 10% of the price of the house to pay for down payment.
About my credit: I have everything paid off in full. All debts are paid off in full. but this was recently so my credit score didn’t go up yet it still at 515.

Now my question: Can I get a no income verification loan with my credit score this low?

Also How long does it take to update my credit score?

Best answer:

Answer by jwilliams22mn
Ok, and wait a few months. Your credit score will go up dramatically. It will be worth the wait. Then, you do NOT use any of your money for a down payment. If you are a first time home buyer there is absolutely no need for that. Wait until you have the ball in your court with a good credit score and excellent savings. We bought our house recently with a credit score of 650, and major past problems.We got a zero down loan at 6.1% 30 year fixed. You can do this too! Good Luck!

Add your own answer in the comments!

5 Comments

  1. The short answer is “no”, your score is way too low for a no income loan, especially at 90%. Hard money lenders may not care what your income is, because they will just as readily take the property if you should default, but they want to see a 65% loan-to value (65,000 loan on 100,000 property).

    Unless you have a high score of say 660 plus, you will not get this loan type. A score from a 515 to this level will take a lot of time – just paying everything off does not erase your history.

    Why not verify your income? Probably because it is not real, especially with sketchy credit – the risk is too much for lenders right now.

  2. It may take 60-90 day’s for you to notice a change in your scores. I’m guessing you can’t go FHA because of verifiable income. You should contact a mortgage broker still with a subprime program. Ask if they can do an 85/10/5 or an 80/10/10. Those two scenarios show your ten % ino the deal the 10% and 5% represent a second mortgage or a seller-held carry back that you’ve asked the seller to carry. The rate will be much higher than you might expect. In the lending world it’s all about risk, people in the investment, banking, and credit world took a ton of risk in recent years and we’ll pay now. In times such as we are currently in, the financing has to be lined up before the house becomes a consideration. The house that you think is a great deal today will be replaced by a house that’ll be a better deal down the road. Down the road when you’re ready and your scores are up. Not having accounts with monthly balances will hurt your scores in the long run. You need to demonstrate responsibility and credit card balances that are at about a third of what they could be will benefit you.

  3. The current mortgage crisis is making it very difficult for first time home buyers.

    1) Try to qualify for FHA (see an FHA advisor) These interest rates are much lower.

    If you don’t qualify,

    2)Try to qualify for a loan called “ACORN” provided by B of A and Citibank. They help with downpayment and below market interest rates.

    If you don’t qualify,

    Get your credit score to above 680 (speak with a credit repair company who has seen your credit report).

    Try as much as possible to get 20% down (you want to have only one loan. 10% down, you will still need two loans)

    Make sure you purchase in an area that retains value (prices are going down due to mortgage crisis and the real estate market.

    Keep in mind that there is no need to rush into a purchase since the market is in it’s current state. It’s not like a couple years back where if you didn’t buy now, the prices will jump again next week. Take this opportunity to improve your credit score and save more down payment. Speak to a Realtor that you trust to keep you posted on the current market. When the time is right, you will be equipped to purchase at the best interest rate available.

    FYI (don’t get into a short term ARM unless you are going to sell within that ARM timeframe)

  4. You will have a hard time getting a no qualified loan as i don’t know where everybody on this sites been but we have a sub prime mess unless you bought a house here in the last couple of months all the lending rules have changed banks aren’t lending money like they used to.
    Try finding and buying an owner financed home until this mess is over. Or try buying a home buy advertising you buy homes and take over a home in good condition where the owner can’t afford it. Your helping them out and you’ll be getting a good deal.

  5. “YES”…”U”…can get a no money down mortgage…”BUT” u have 2 pay a premium up-front[in points%] & a higher rate 4 the first, second, & third mortgage:
    #1. 60%…@….8.2
    #2. 20%…@….7.8
    #3. 20%…@….6.8
    30yrs.fix…or …adjustable….baloon