Desparate officer

Jeanette · Posted: Fri Oct 19, 2007 8:59 am Post subject: Desparate officer

Do anyone knows of lender who would give a program for a score of 510 and ltv 80%?

livinginnky · Posted: Fri Oct 19, 2007 10:33 am Post subject:

Are you a loan officer, Jeanette?

You need more info than that.

Is it full doc?

Do you/they have assets in reserve?

Do they have judgements or tax liens?

Do they have active tradelines? How many?

One of the best sources for current lender programs is the Scotsman Guide. Do a google search for them and you will find their lender matrixes. This only helps if you are in the mortgage business and understand how a loan is structured.

Guest

Hello Eric Matthews,
Thanks for replying

To answer your question I am a loan officer but new in the business.
It is a full doc
no judgement or tax liens
no active tradelines.

I hope I answered all your questions. Can you help me?

livinginnky · Posted: Fri Oct 19, 2007 4:21 pm Post subject:

No, unfortunately the tradelines will be your biggest concern. When you are dealing with low credit scores the only way to get the loan done is to have active tradelines (more the better) of at least 3. 1 of the trades are going to have to be over $1500.

When you get what I like to call "loan officer spam" from lenders telling you all the wonderful programs they have you often get flyers that say no tradelines required. It may be true but you will need crazy compensating factors that you probably won't have.

Now if you ever get a deal that has tradelines, maybe they just have all there cc's maxed out and that is why they have a low score, then you can look at lenders. FHA being the first choice for low credit borrowers.

So no I don't think you will find a lender. I still would have had additional questions but tradelines are always a great place to start as they will kill your deal, quick. Think about it if the lenders only really care about the last 1-3 years what does it tell them if there is no active credit? You probably guessed the answer, it is nothing. The lender knows nothing so they aren't going to give them the benefit of the doubt.

Jeanette · Posted: Sat Oct 20, 2007 6:46 am Post subject:

Thanks for your honest reply. I guess I just might have to go to the hard money lenders which is what I was trying to avoid.

livinginnky · Posted: Sat Oct 20, 2007 10:04 am Post subject:

That will open up a whole new load of questions.

BE VERY CAREFUL AND DILLIGENT WHEN DEALING WITH SO CALLED "HARD MONEY LENDERS"

I have seen from experience that most hard money is just that, hard money. I wouldn't take to much they say to be true. I am not going to name names but I have never had a good experience with a "hard money lender".

I honestly think that most of them are just "lead generation" companies looking to sell your customers info to countless other companies.

The questions you need to ask them are these...
Do you fund your own loans?
Do you guarantee my customers privacy?
Do you broker loans?

Not to be the bad messenger but I don't think it helps anyone to use these types of lenders. I know you want the deal, and your customer probably says he/she doesn't care but they will when the $%#@ hits the fan.

Take this statement as you will, but keep in mind that I mean it in the best way. YOU ARE RESPONSIBLE FOR YOU CLIENT, NOT NECESSARILY LEGALLY SINCE YOU WORK FOR THE BANKS, BUT DEFINATELY MORALLY AS A HUMAN BEING SHARING THIS WORLD WITH OTHERS.

As a loan officer it is your job to understand the whole loan, not just the rate and term. The internal terms of a mortgaqe can have just as much of an effect on value as the interest rate does. Just because some bank approves someone doesn't mean it is a good deal for the client.

Guest

Eric, I understand what you are saying about the hard money lenders. Who will I go to then if I dont go to the hard money lender since other lenders will not touch her? She will go into foreclosures if I don't use the hard money lenders. I dont know where else to turn.

livinginnky · Posted: Sun Oct 21, 2007 7:41 pm Post subject:

The question that comes to my mind is this, and take it how you will. Do you really want to help them or do you just really want a commission? I ask this in all seriousness and with all due respect. All loan officers have to make the decision at some point... When is it too much? Will refinancing someone at a 14% interest rate to prevent foreclosure really help them? Or will they still be foreclosed on 6mos.-1 year from now anyway with this new lender? Typically a hard money lender is only going to loan money on a house with a ton of equity that they know they can steal easily. And I say that in all seriousness. There is a reason they only do 60% LTV and below. They know the payments won't get made and they are on a gold mine.

You are responsible in my mind to understand the underlying contract that the lenders have your customers agree to. And they don't usually show that to LO's they only show the customer at closing(unless you are actually there at closing).

If you answer the prior question as yes you want to help and you are sincere then send me a private message of the whole scenario and I will see if there is anything I know of to help. Be as complete as possible without the personal info.

evolovik26 · Posted: Tue Oct 23, 2007 8:18 am Post subject:

FHA FHA FHA
See if they qualify, need 3-4 tradelines (phonebills, rent, utilities, club membership) try that first. Unless you cant do FHA then you are in trouble. But tell me this if they dont have tradelines how come they got 510 score?

Guest

What does the tradelines do. They have a 510 score because of 90 (5)lates. No one wants to do FHA on her.

Samantha

Hi Jeanette,

Does she has an alternative credit score either from the PRBC or any other organization which offers such scores? I'm saying this because she doesn't have a good credit score, but there are lenders who accept alternative scores. So, if she can be eligible for loans offered by such lenders, then I think that will be ok.

Regarding tradelines, they can be installment loans, credit cards, mortgages and even payments on utilities. So, when a borrower makes regular payments on these, it helps him build up a good score.

Now, considering the fact that she needs an FHA loan, you can talk to FHA approved lenders in this community. For that either you or the borrower can send the community a request for mortgage quotes, which will then be passed on to the FHA lenders. And, then if they feel they'll be comfortable offering the loan, they shall contact the person who sends the request and have further talks.

Hope this helps...

God bless you.

Samantha

Guest

Thanks Samantha.

Thanks for the explanation on tradelines and your suggestion. But can you also explain PRBC?

Thanks,
Jeanette

evolovik26 · Posted: Wed Oct 24, 2007 7:15 am Post subject:

If the lates over 12 mon old she could do FHA (the real one not the agency lender programs) with manual underwrite and LOX and 3 alternate lines of credit.

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