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kbgf0000 · Joined: 18 May 2011 Posts: 3 2.02 Dollars($)

Hi, I am currently selling our home because we can no longer afford it. We need a loan of only $100,000. I am currently working on my credit as it is around 590 right now. It is mostly medical bills (my wife had heart attack of age 38, I have had 3 surguries.) It is me, my wife, and my 10 year old son. I can put $15,000 down. I was looking in subprime loans, bridge loans, FHA loans, etc. I was even in the process of a scam loan that looked too good to be true. Can you help us out? Thank you

chrisgummerson · Posted: Wed May 18, 2011 10:23 am Post subject:

Hello,

First off, what state are you located in? Some states have lesser requirements for FHA loans, down to 580 credit score. Are you going to be able to get proceeds from the sale of your current home, or is it underwater? If the home is upside down, and you short sale, it will also affect your ability to purchase, as lenders will take this as derogatory or similar to a foreclosure. If you have a steady job, verifiable income, and NO lates on anything in the last 1-2 years, you might be able to get financing as is. There are no subprime loans any more, and a bridge loan would be a short term loan, which is not going to help you. FHA is you best bet with your current credit. Any one that says they can help you, beware. You could always get hard money, or private money, but you must put atleast 30-35% down. Contact me if you need any further information. I am a direct lender in CA.

gmakerley · Posted: Wed May 18, 2011 10:30 am Post subject:

Chris they just don't call them "sub-prime" anymore. There are still plentiful lenders offering less than prime loans around the country, all hungry for that continuing business.

KGBF - I recently read an article that indicated that Wells Fargo had been swayed by FHA's desires to institute (or re-institute) lending to those whose scores are as low as 500. That's not to say these would be "prime" loans, and not a guarantee for every borrower no matter what; but it would be worth your trouble to pick up the phone and call your local Wells offce to ask specifically if they an offer such a loan in your case.

chrisgummerson · Posted: Wed May 18, 2011 10:45 am Post subject:

Yes, George. I agree. I understand that FHA does go to 500 ficos. The overlays are ridiculous that most people will not qualify. I am referring to the true "subprime" loans that got us into this mess in the first place. You are not going to get a no income loan, with no money down on a 800k home, which is what I was referring to. FHA is much different than subprime, but I do agree that sub 640 ficos, is not prime. But the only channel for these loans is FHA. I also have heard many rumors about the subprime investors coming back into the market, some lenders are allowing the bank statement loans again. We will see what unfolds. I think in the above scenario, the best bet is to have someone review his file and credit, and give him the advice he deserves. A one year plan, can make you a homeowner if you stay on top of your credit and finances. You always have the option of co-borrower too!

gmakerley · Posted: Thu May 19, 2011 11:29 am Post subject:

Thanks, Chris. I get where you're coming from here. My citation of sub-prime was strictly concerning those with atrocious scores and not taking into account the no-document, no-ratio, no-nothing loans.

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