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Can I get mortgage at bad credit?

Posted on: 29th Sep, 2005 04:32 pm
My credit score is very poor, below 300. I had to file bankruptcy last year. Now my earning is pretty good. Can I apply for a mortgage? Is the rate of interest going to be very high for me? Plz suggest. Any advice is appreciated.
Hi Sophia

Welcome to MortgageFit Forums.

Seeing your comment, the first thing that comes in my mind is that you should focus on improving your credit score. Credit score is a big factor when it comes to taking a mortgage loan. The first thing that lender looks is the credit score of the borrower.

At this credit score you will get a loan from a lender who specializes in poor credit but I am sure the interest rate charged will be very high. I would suggest you that if you can put aside the idea of mortgage loan at this point and concentrate on improving your credit score. Credit score can be improved by doing some good planning of budget and by making regular payments against your bills. Once your credit score improves, you can get the best deal in the market.

You also mentioned that you had filed a bankruptcy last year, so if you can tell me that it was under which chapter i.e. chapter 7 or 11.

So, dont worry too much about your poor credit score, just sit down and do some homework to plan out your expenses, soon getting a mortgage loan at a lower interest rate will be very easy for you.

God Bless You

For MortgageFit
Samantha
Posted on: 29th Sep, 2005 10:19 pm
hi,

what samantha said is absoloutly right, all you nned is to build the credit.

you can get the subprime loans, as this type of loans are made for poor credit people, but subprime loans typically require a larger down payment and a higher interest rate.

but this option should be used as a short term solution, say 2-4 years so that durinmg that time you can improve your credit and qualify or refinance into a lower risk and low rate loan.

thnx
Posted on: 30th Sep, 2005 10:23 pm
thanks for your response. i filed chapter 7 bankruptcy last year and my credit is nasty now. i contacted few lenders, they refused to lend me. but i need a house badly.

never heard of subprime loans. how to apply for it? i cannot pay a lump sum down payment even! should i go for some payday loans?
Posted on: 01st Oct, 2005 01:17 pm
Hi Sophia,

I really feel for your problem. But don't worry. I strongly feel you will come out with a solution. I shall try here to ease your problems and clear your queries.

Sub prime loans are meant for people with bad credit when they are unable to qualify for a conventional loan or low down payment loans offered by FHA and VA. But as higher risk is associated with lending to borrowers having poor credit history, so, sub prime loans typically require a larger down payment and a higher interest rate.

Most sub prime lenders are mortgage or finance companies, although lenders can also be thrifts, banks, or affiliates of banks.

Several factors like your debt to income level, employment history, type of property and assets are taken into consideration when determining if you qualify for sub prime loan.
So, if you wish you may contact some mortgage or finance companies regarding a sub prime loan.

But if you are unable to make a lump sum down payment then again it may not be the right one for you.

I think you can opt for a pay day loan considering your situation. The main benefit of a payday loan is that it's there whenever you require.

Although the interest rates on payday loans are high, but it is quickly available to people who are employed but experiencing a cash flow crunch for some reason. So, for you pay day loan can be a good alternative although it is expensive. Only thing to remember here is that you have to pay back the loan when it comes due?or sooner if you can. You should not continue to roll the loan, as the fees will mount to levels that you will be unable to pay.

Hope this information will help you.


Regards,
Blue
Posted on: 01st Oct, 2005 02:20 pm
Hi,

I will suggest you not to go for payday loans as for these type of loans interest rates are too high.

Can you tell me that why you need a house so badly, as you you said that you already have been denied by few lenders.

See Sophia, please take this suggestion as a friend. Try to analyse the situation which demand that you should move aside the idea of mortgage loan.

Still I will try for you as I know some of the lenders personally, I will talk to them about you and see what best i can do for you.

God Bless You

Samantha
Posted on: 01st Oct, 2005 07:39 pm
Thanks Samantha, I do appreciate your concern. How can I contact those lenders? Can you give me their address?

Best,
Sophia
Posted on: 04th Oct, 2005 03:39 pm
Hi Sophia

I can very well understand your situation. But do not worry. I have come across several people with bad credit and most of them have been able to recover from such situation. It seems a tough job to improve the credit score especially when you have been through bankruptcy. But believe me; a little effort on your part can help you overcome this situation.

All you have to do is to try and pay your bills in time. If your credit report can display regular and timely payments towards all your debts for a certain period of time, then it will be easier for you to apply for loans. So please don't lose hope just because your credit history isn't fair. Our community consists of a variety of such lenders always willing to help people with poor credit and that too with affordable rates of interest. I had a discussion with the lenders in our community as to how they can help you under this situation and I feel it will not be difficult for you to get a mortgage loan.

Our system is designed such that if you sign up with us, we shall forward only the required details to the lenders we know. In this process we shall take special care of your privacy and send only those details which you feel are necessary. The lenders will in turn go through your details and then contact you with loan offers as per your requirement. So please sign up with us at http://www.mortgagefit.com/signup/ so that we can proceed further.

Regards,
Caron.
Posted on: 05th Oct, 2005 03:27 am
How much do you charge for signing up?
Posted on: 06th Oct, 2005 05:56 pm
Hi Sophia,

This is a free service. We don't charge you anything for signup. Feel free to sign up with us and place your query so that we can help you in the best possible way.

Regards,
Caron
Posted on: 06th Oct, 2005 06:04 pm
Credit score around 475-500
Posted on: 23rd Aug, 2007 02:58 pm
Posted on: 23rd Aug, 2007 05:57 pm
Hi Papabrk,

With your low score around 475-500, you may get a loan, but with a higher interest rate.

Rather than bearing the higher rate, it is better to improve your score first and then go for a loan. To know how you can improve the credit score, you may refer to http://www.mortgagefit.com/credit-rating/improvescore.html
Posted on: 23rd Aug, 2007 10:03 pm
I believe my credit score is around a 520. Maybe slightly lower but what I gather here in this thread is that it is possible to get a mortgage only with a higher interest rate correct?

If only I didn't have a problem with having 2 houses on one property lol.
Posted on: 24th Aug, 2007 09:32 pm
Hi Wildstorm,

It's not that you cannot get a mortgage with poor credit. When you consider the FICO score and the like, it is quite impossible at least in the current market scenario. But you might want to check out with alternative credit scores. Such scores are based on utility bills, expenses on rent, cables etc.

You can just refer to the section on Alternative credit scores. I think if you can get an alternative score, then it will help you get a home loan.

Hope this helps.

God bless you.

Samantha
Posted on: 27th Aug, 2007 05:00 am
Thanks Samantha. I didn't even know there was alternative credit scoring. Man, can't they just stick with one thing? lol.
Posted on: 27th Aug, 2007 06:24 am
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