obtaing a mortgage loan without fico score

cynthiahuynh · Joined: 02 May 2007 Posts: 2 2.18 Dollars($)

can I get a mortgage loan if i do not have any fico score, but my friend has the income, but he has bad credit also...under 500

Guest 0.10 Dollars($)

Well Cynthia, getting a mortgage without credit score is possible but then the interest rate will be higher than what it might be if you have a credit score.

Leitich

colin · Posted: Wed May 02, 2007 12:32 pm Post subject:

Cynthia, both of you would face problems with getting good interest rates as you do not have score while your friend's score is also very low.

If possible you two should wait for some more time to let your friend's score improve and go up over the 630 mark. It will help you in qualifying for good rates.

Colin

ckalvesmaki · Posted: Wed May 02, 2007 1:12 pm Post subject:

Cynthia,

There are several ways to get a mortgage with low scores and even no scores. A lot depends on why the credit is so poor......Can you tell us more about the poor credit history are there charges and if so how much and how old? FHA does not have score requirements but will look closely at the last 12-24 months of non traditional credit ie rent utilities phone bills etc....to establish alt credit. There are also programs like NACA and ACORN available.......

Colin.....there are no conforming guidelines that say a 630 score is needed......Conforming loans are NOT score driven.

jameshogg

Hi Cynthia,

If you do not have a FICO score, you may still qualify for a mortgage. But FICO score proves how creditworthy you are. And, you can establish your score by taking small amount of loans and making payments at regular intervals. You can take a student loan which you may qualify for and then use a debit card to pay it off.

Thanks

Guest 0.10 Dollars($)

Thank you all for your responses. I would like to know where I can get these mortgage loans at? I know that the interest rates will be at an ugly stand point, but we have no choice right now. We are at a dead end and we need to get this loan asap!!! Please help!!!

colin · Posted: Thu May 03, 2007 5:27 pm Post subject:

Cindy, you had asked about possibility of getting the loan with low score today also and some community members have suggested a few options, please go through this page read their replies: http://www.mortgagefit.com/inprocess/loan-lowscore.html

Colin

mikeshapiro · Posted: Fri May 04, 2007 10:15 pm Post subject:

Another thing you should consider is this. Should you get a mortgage? Lenders have requirements set by their investors for a reason. Reason being they have set up guidelines to protect the investor for the borrower (you) going into foreclosure and not making payment. The realize the lower the credit score the higher than likelyhood of this happening. So you might want to consider working on your personal credit line first and get a balanced budget before jumping into a mortgage.

Hope you understand what I'm saying and don't take it personally. Smile

Guest 0.10 Dollars($)

You can still get a mortgage. If you have credit history but no score then some lenders can do a manual grade. Usually you will be rateed at the lowest level, so LTV's over 80% will be a stretch. I know off hand that Chase offers this option of manually grading should no score exist.

sara

That's right Mike, it is better that one builds up a strong credit profile and then starts shopping for a home loan to get qualified at some of the best rates available in the market.

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