Want mortgage with low credit score

My credit score is 502 and i am trying to either do a 2nd mortgage or refinance my house to get caught up on bills so that i will not have to fill bankruptcy ...... i am having a hard time finding someone who will work with me with a 502... i have never been late with my house payment and i have had the house around 5 years now.....

Samantha · Posted: Tue Oct 11, 2005 10:00 am Post subject: RE

Hi,

Its good that you have been regular in paying your bills.

Dont worry about your credit score, signup with us at www.mortgagefit.com/signup/

We have a community of lenders who also specilizes on all types of credit score.

After you signup with us, some of the necessary information will be passed to the lenders and they will be approaching you with their loan programs and you will be able to choose the best option as per your suitability.

We have a community of Mortgage Mentors who can also help you in taking important decisions during your mortgage process.

Hoping to see you as the member of MortgageFit Community.

God Bless you

For MortgageFit
Samantha

Niicss · Posted: Tue Oct 11, 2005 10:12 am Post subject: RE

Hi

Getting a good loan program depends on good credit score. Try to improve your credit score.

Even the new law has come into being which states that if your past payment history is not good but your recent payment history is good , then on the basis of the past 2-3 years' payment, you can have the credit report and with that credit report you can get a good loan program.

Thanks

Niicss

[Edited by Jessica, made minor changes. Thanks.]

Guest

i'M in the middle of a short sale, ow will this affect my ability to get a home loan in the future?

Samantha · Posted: Thu Oct 13, 2005 8:15 pm Post subject: RE:

Hi Tomeka Burton,

Welcome to the MortgageFit Forums.

I can very well understand your situation. But do not worry. I know many people who have come across such situations but they have made every efforts to overcome such problems. A short sale does affect your credit score but then there is every possibility of getting loans in future.

In case of a short sale, on your credit report the loan will be mentioned as paid but it will have a notation that states "Settled for less than originally owed" or something like this. It is better for homeowners to have short sale than to have a foreclosure listed on their credit report because foreclosure has a negative effect on the credit history of an individual.

A short sale implies that a foreclosure has once been called by the lender. This may affect your credit history but even then you can get loans from sub-prime lenders. These lenders offer mortgages that are specially meant for people having poor credit score and therefore they charge a high interest rate. But apart from subprime loans, you may qualify for other loans depending on the credit rating offered by different lenders on the basis of your credit history. Lenders have different standards for evaluating the credit rating of a borrower and hence without a very good credit score you may still qualify for loans other than subprime mortgages.

May God Bless You.

Thanks,
Samantha

Guest

Does anybody know about what rates i can get with credit scores ranging from 560-600. Two scores are 600 and one is 556.

Samantha · Posted: Thu Oct 20, 2005 10:09 am Post subject:

Hi Wondering,

Welcome to MortgageFit Forums.

Actually lenders do prefer a credit score of 650 and above where you are going to get the best loan options with low interest rate. But don't worry there are options available for persons with credit score in the 500 to 600 range, but you may have to pay a higher interest rate.

Under this condition one option may be sub-prime loan where interest rate is slightly higher than normal conventional loan. You can certainly shop around for the best rates within this range and see what best rates you can get.

As a friend I would suggest you to take a slight care on your budgets so that you can improve your credit score somewhat and bring it in the range of 650. There are a lot of people who faces problems with their scores but improve considerably with time and a little effort.

Normally if you have a 700 FICO score, you are going to get rates in the range of 2.9% - 3.9% for short term and 7.9% for a long term.

For the range 600 to 619, that rate may be in the range of 17.99% and for 550 - 600 it may start around 19.99%.

But this rate varies from lender to lender and with different loans. So, you may get a lower rate even judging your other conditions which may come to your favor. Lenders do give preference to your score but also looks at some other points. So, don't lose hope of getting a better rate.

You may sign up with us at http://www.mortgagefit.com/signup/, and post your query absolutely free of cost, so that we may forward it to some efficient lender who will discuss with you and suggest some affordable rates for you.

God bless you.

For MortgageFit,
Samantha

Guest

I won't loose hope! Since I am young and don't trust credit cards and don't need a car I have limited credit, which puts me at poor credit. But I hope a home can be the first big thing to get on my credit report.

Samantha · Posted: Thu Oct 20, 2005 10:55 am Post subject:

Hi Wondering,

It's good to see you are so matured at a young age. With a specific plan to your budget you can always keep on improving your credit with time.

It won't be a problem for you to live up to your expectations of getting a home loan. Try to maintain your payments regularly and that will help you in increasing your credit score within a short period.

For more specific help you can always sign up with us, so that we can put your query in front of an appropriate lender to help you.

God bless you.

For MortgageFit,
Samantha

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