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100% financing with bad credit

Posted on: 14th Dec, 2005 01:05 pm
my score is poor and is below 600. Can I get a loan with 100% financing as I don't have sufficient money for down payment currently?
Hi Boyle,

Today there are various options for people to get a loan even with a bad credit. You can check in with the sub-prime lenders who in many cases even include the closing costs as part of the loan.

So, I shall advise you to proceed with your plans and with the options available today, you will have your dream achieve success.

Regards,
Blue
Posted on: 14th Dec, 2005 01:12 pm
Hi Boyle,

Your concern is understandable. Lot of people amongst us face similar worries with shortage of money for down payment and also having a poor score. I shall advise always to try for an improvement in your credit score gradually which will help you to qualify for the traditional loans.

In your case if you require a mortgage immediately, then you can go for a sub-prime loan. Today there have been a lot of bad credit financing options opened in the competitive market and it is possible to get 100% financing even with poor credit.

This may demand some requirements -

  • a minimum score of 580
  • there should not be more than one late payment in the last 12 months
  • You should have sufficient income to make your monthly mortgage payments

But one thing is certain, that you will have to pay higher interest rate and fees for this type of loan. You should shop around to see that you are paying the lowest cost that is possible.

In any case you should plan for a long stay in your home so that some equity builds up on your home and you can cover up the initial loan costs.

Hope this information will help.

God bless you.

For MortgageFit,
Samantha
Posted on: 14th Dec, 2005 01:31 pm
Hi Boyle,
Yes you can get a loan with your score. Blue is correct that you will be in the sub-prime arena. Which does mean a higher interest rate.
Do you have collection accounts? If you do how recent are they? If you could bring your score up it does help alot. But you should be able to get a loan. Make sure you shop around for a good lender/broker.
Posted on: 15th Dec, 2005 03:54 pm
Hi Boyle,
580 middle fico = 100% financing
you need a 2 year credit history and 3 accounts (trades) that have been opened for 6 months - they can be opened or closed. Any collections that are over 24 months we do not look at. Any collections that are with in 24 months, you can have up to $5,000 cumulative. Lates on your tradelines (car, credit cards) are also ok with us. The lates are already calculated in your FICO score.
Happy house hunting!!
Natalie
Posted on: 15th Dec, 2005 05:58 pm
Hi Natalie,

Welcome to MortgageFit Forums.

I think the explanation you gave have enough clarity to help people understand in similar problems.

I appreciate your approach and willingness to help our community. Hope we can have more suggestions and advice from you in future.

We are here to help each other in this community through discussions and your participation will definitely boost this effort.

Hope to have a long and successful association with you.

God bless you.

Thanks,
Samantha
Posted on: 16th Dec, 2005 08:30 am
My wife and myself are looking for a program to buy a home with 100% financing but we have poor credit. Is this possible 8)
Posted on: 11th Apr, 2006 09:50 am
Hi Junelyn

Why not, but may be you have to bargain well and the interest rate will be bit high.
Posted on: 11th Apr, 2006 10:00 am
Hi Junelyn,

Today's competitive market has opened up various options for consumers even with bad credit. I would like to know your score.

Normally with a poor score your may get approval from a sub prime lender for 100% mortgage loan financing by doing a 80/20 mortgage loan.

James
Posted on: 11th Apr, 2006 10:11 am
Hi Junelyn,

Welcome to MortgageFit Forums.

As James and Mac said you will be able to get approval for 100% financing but may be with a sub-prime lender. The interest rate will be high. You didn't mention your score. Also I would like to know if you have any collection accounts, then how old are they?

You need to do some shopping in order to get a good lender or a broker but there are definite chances to get a loan.

Feel free to ask if you have any more queries.

God bless you.

For MortgageFit,
Samantha
Posted on: 11th Apr, 2006 10:27 am
Credit scores.......Do not matter with an FHA loan and you are allowed to have open collections......Your best bet is to speak with an actual broker to see if you can qualify for an FHA loan or a program like fannie flex 100.....your only option may not be subprime.
Posted on: 15th Apr, 2006 11:15 am
My husband and I have been trying to purchase a home for 4 years now no one will touch us, we have also been trying to re-establish our credit no one will give us a chance about three years we paid all are collections off brought our score (there exact my husbands and mine) to 560 I have been trying to bring it up to 580. We purchased are car through a in-house loan we have 2 payments left and then it will be paid off. Ever payment was made on time but we get no credit for it because it is a in-house loan. We lived in the same house for 4years every payment made on time we just want to buy a house any suggestion to help buy our first home
Posted on: 12th May, 2006 09:26 am
DJENNINGS

You should not feel dishearten about your situation, many people face these kind of problems.

What I can suggest you it to become strong and work out a plan that how you are going to proceed to build up your credit score.

Don’t do anything in hurry, if required take someone’s help, like your friend or relatives discuss your situation with them. They will surely help you.

But never go to any company who says that they will improve your credit within few days, those will put you in more trouble. For the house, try to build your credit 1st. Try to reach that magic 600 number. Please refer this article http://www.mortgagefit.com/credit-rating/credit-repair.html it has got some useful tips on building credit.

Please fell free if you need any further assistance, we are all with you.

Good Luck

Adonis
Posted on: 12th May, 2006 09:38 am
Hi,

Welcome to MortgageFit Forums.

I appreciate you for the efforts put by you in lifting your credit. Now although it is possible to get a home loan with a poor credit but a minimum score of 580 helps.

There are sub-prime lenders in the market whom you can approach for a loan under these conditions. You will be able to get mortgage, perhaps the rate will be a little high.

If you want to have home loan with convenient rates then, I would suggest to for some more time and let your score reach near 600 or above. This can be done with a little effort and by maintaining a proper budget.

But if are in a hurry at present to go for a mortgage loan then you can look for some good brokers in your area to get a loan as per your requirement. A little bit of shopping around is required to get a lower rate.

You may also take the help of MortgageFit if you want. We maintain a good network of lenders throughout the country and can put forward your request to the appropriate department.

Feel free to ask if you have any more queries or facing any more problems. We will try to help you in the best possible manner.

God bless you.

For MortgageFit,
Samantha
Posted on: 12th May, 2006 09:42 am
hi,

you can look for sub-prime lenders for 80/20 financing with seller carrying the second mortgage. you need to make sure that you quote as many mortgage lenders as possible to get assured of finding the lowest rate and best terms within the prevailing conditions.

blue
Posted on: 12th May, 2006 09:52 am
is it possible to buy a house with a judgement that's 4 years old? we have been trying to buy a house and got pre approved but lender says we have to pay that off or title company won't pick up the loan which we were going to do asap since we are able to pay it off..now we have another collection agency suing us for a credit card 4 yrs old and are seeking a judgement so it is double whammy for us as we have been working hard to hear we can get a house then this.
Posted on: 29th Nov, 2007 02:09 pm
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