Looking for a mortgage

liaoyu03 · Joined: 09 Sep 2007 Posts: 175 4.75 Dollars($)

While we don't have much saved up, we are looking for a mortgage that can work with the fact that we have no credit score. We are looking at a house that is less than 2 times our income, it will appraise for asking price. Most of the money we have set aside will go to closing costs. Anyone know where I could get a mortgage with no credit score and a low down payment.

ezmortgageloanz · Posted: Sun Sep 09, 2007 9:47 pm Post subject:

I suggest that you investigate the use of a FHA 203b loan---it allows for >97% for borrowers with no credit (the lender will accept alternative credit like utility, cell, cable, etc.).

Regards,

Scott Miller

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Liaoyu,

I agree with Scott that in your situation, you may go for FHA 203(b) loan. If you have no traditional credit and an average income, but can afford to make a minimum of 3% down payment and has sufficient cash to close the loan, then 203(b) loan is the right option for you. The main advantage of this type of loan is that the lender does not consider the credit of the borrower as an important factor for loan qualification.

But I think as you have no score, it is better if you take any small amount of loan and start repaying it. In this way your credit score will develop and you will have a satisfactory score to qualify for any loan taken in future.

ezmortgageloanz · Posted: Mon Sep 10, 2007 12:00 am Post subject:

I'd agree with Larry if it is the OP's intent to purchase a property in the next 6-12 months...

If it is your intent to purchase a home in the next 1-3 months, I'd discourage you against taking Larry's advice---the new tradeline would ultimately effect your debt-to-income (DTI) and curtail your purchasing power (the max. loan amount you would qualify for). Once you get a FHA, the mortgage will be added to your credit report and a FICO score will result.

Regards,

Scott Miller

Caron · Posted: Mon Sep 10, 2007 12:26 am Post subject: RE: low credit financing options

Yes Scott, if Liaoyu needs a home asap, then it's better not to take over another loan right now. It may affect the debt-to-income ratio. I feel it's not required if he can get a mortgage without it. More so, because once he starts making payments on the mortgage loan, he will be able to build good credit. Isn't that so?

However, an FHA 203b loan would require a monthly mortgage insurance payment as the FHA insures such loans. But the best part is that a borrower can have the premiums financed into the loan amount.

As far as other options with no/low credit are concerned, well there are loans offered by the NACA, Mycommunity mortgage offered by Fannies Mae approved lenders and ACORN Housing loans.

Good luck

domainforsale · Joined: 10 Sep 2007 Posts: 7 0.00 Dollars($)

You should find a mortgage broker in your area. let the mortgage broker find the lender for you. i work in this field in maryland, dc, and va. A few questions for you that a broker or even a lender will want to know....how much of down payment can u give, do you have seller help, do you have any assests at least 2 months reserves in the bank. As far as credit wise most lenders will let you use alternate lines of credit..like phone bills, car insurance, or anything in your name with a 2 year payment history

shiguzhen · Joined: 10 Sep 2007 Posts: 11 0.00 Dollars($)

Something you might think about is an "FHA Loan". Now I do have to tell you that there can be some setbacks with this type of a loan but, it does help people get into a home that will assist them with building both their credit scores and some equity. This may sound like a blatant advertising plug but my wife convinced me to go onto lendingtree.com purely as a lark. We were expecting to get laughed off of the website but we had three people call us within an hour after completing their application. Now I do have a credit score but it isn't a pretty one.
Atfer we got all of the paperwork done my wife(a stay at home mom) and I were approved for a $95,000 loan. So it just goes to show you that you never know until you try. let me know how everything goes and good luck on buying your home. Smile

liaoyu03 · Joined: 09 Sep 2007 Posts: 175 4.75 Dollars($)

Thanks for answers. We found a house, have 10% down, but credit is still a problem. We want to buy the house together. I have a FICO score, but I am stay at home mom, he has no FICO score, but makes a very good income. Beings that we moved just over a year ago, we have not established a 2 year history where we are and had to switch alot of services, which once were in his name or mine, and some utilities are in my name or his name, but not jointly. Any other suggestions????

shiguzhen · Joined: 10 Sep 2007 Posts: 11 0.00 Dollars($)

OH! I forgot to add that we are going with a ZERO down payment option. But seeing where you already have a decent down payment saved you don't have to go the route we have.

Guest 0.10 Dollars($)

Hi Liaoyu,

In the beginning, you have mentioned that you have no credit score and now you are saying of a credit score. Can you please explain how is it possible?

Niicss · Joined: 03 Oct 2005 Posts: 1047 156.15 Dollars($)

liaoyu03 · Joined: 09 Sep 2007 Posts: 175 4.75 Dollars($)

Guest 0.10 Dollars($)

It is good that you have a credit score, now you should start to build your credit profile slowly. It would be quite helpful for you in obtaining further credit in future.

Guest 0.10 Dollars($)

Hi Liaoyu,

It is better, if you wait for some time and do the purchase later after building a standard score. It will help you in future to borrow a larger loan amount.

liaoyu03 · Joined: 09 Sep 2007 Posts: 175 4.75 Dollars($)

ok ,thanks for your suggestions.

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