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help!!! low credit score, have cosigner, need a lender!!

hello. my husband has a fico score of 570 and we have a cosigner that has great credit but the problem is that a couple of lenders that we talked to in getting a fha loan of ONLY $50k for a first time homebuyer has told us mixed answers as well as not trying to help us. we live in illinois and i know most lenders can lend anywhere in the states so if ur a mortgage lender that will accept a cosigner for a fha loan, even though my husbands credit score is low (he had a few collections; total of $1,700 in which he is clearing that up in 2 weeks) and a dispute for one collection as well. my husband and the cosigner makes the same income since they both work together: $25,000 each annually. can anyone please please please help us?!? email me at "kcandjr416@yahoo.com"

[size=9:ab092c58f8][color=Red:ab092c58f8][Link deactivated as per forum rules. Thanks.][/color:ab092c58f8][/size:ab092c58f8]

chrisburns's picture
chrisburns | Joined: November 13, 2007 07:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I don't see a problem getting that approved on FHA. You will have to write letters of explanation and show that the debts were satisfied but other than that should be smooth sailing.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:27 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi kcandjr!

Welcome to forums!

In my opinion, your husband will find it a bit difficult to get a loan with low credit score along with collections. However, as he has a co-signer, there may be lenders who may be ready to give him a loan. He can seek a no obligation free mortgage consultation from the lenders of this community and get to know what kind of rates and terms he may expect to get or whether he can qualify for getting a loan.

Feel free to ask if you have further queries.

Sussane

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:27 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Effective Dec 31,2008 FHA does not allow a Non-owner occupant become part of the mortgage. Is their anyone knows why? Reason is my cousin wants to [url=http://www.mortgagefit.com/refinance.html]refinance[/url] and wasn't able to do because of the new non-occupant borrower clause set by FHA.

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m.snover92571's picture
m.snover92571 | Joined: February 10, 2009 09:53 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi kcandjr, There are a ton of people here who willing to help you in ur situation. There is a guy of the name of George M Akerly. Hes a very nice guy as he helped me out in my situation. If you click on the home link on top of page there is a list of people who can help you and shows you how to contact them.

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Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi CHARLES,

According to the new rules of FHA, it is true that apart from certain cases, FHA won't allow a non-occupant co-borrower. I guess, a lender is always at a risk if he allows a non-occupant co-borrower to be on the mortgage doc. As the co-borrower does not occupy the property, the lender may not be able to recover his dues if the primary owner fails to pay the mortgage.

Thanks.

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

occupancy has nothing to do with making payments, of course. a co-borrower is equally obligated with a borrower, regardless of living arrangements.

charles...i am looking at the mortgagee letters on the fha website, having not heard of this disallowing of non-occupant coborrowers. when was this decision made by fha?

i have looked at the last several months of 2008 along with 2009 ytd to see when this policy was announced, and i fail to find anything.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

is there any hope of getting a loan with some credit collections and a score in the 6 hundreds

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

depending on the scope of the collections you cited, yes, especially if your score is 620 or higher. a lower score will cause you additional problems, though there are (apparently) lenders who still accommodate the lower scores. virtually every lender will require that collections be paid off or settled in full.

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amyk's picture
amyk | Joined: December 10, 2012 04:18 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

There are many lenders out there who offer loans to people with bad credit, but they do not always have ideal terms. If you are prepared to potentially pay higher interest rates or have a larger down payment, then you can obtain a loan with a low credit score. Your best bet is probably going to be going through a broker who can take all of your information at the same time, and then present your case to multiple lenders. This means you only have your credit run once, and less damage done to your credit during the application process.

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