Okay, believe it or not I actually got a home loan last week with our scores in the 550 range. We only have to have 5% down and we have 6 months to find our home. The bad part is that we have to pay 11% interest, I figured it and if we were able to knock the interest rate down to 8% it would save us about $150,000 in interest costs. I was told, please tell me if this is true, that if our scores improve at the time we find our house that we may get a lower interest rate. I bargained the mortgage company down from 15% down to the 5% for the downpayment. I don't want to push my luck. If anyone is interested in a new home loan and your scores are 500 and above, let me know and I will tell you who I am getting mine through. You would immeadiately recognize the name. I was so shocked when I called last week and was told they do new home financing for scores as low as 500. You will need to pay any outstanding collections before closing. I cannot believe we were approved, I contacted them on a whim, hoping they could tell me what I needed to do to get a loan and was approved.
Okay..you got me! Who did you get your home loan through? Seriously, I am looking to buy a home this summer. I would like to know which lenders are more leniant...
Did you consider an FHA loan? WIth 24 months of clean credit and, all collections paid you could qualify for conventional rates.
This is true. If you find a lender that goes strictly by FHA guidelines you don't have to have a high score. 24 months clean credit and 24 months post BK. We qualified at 7%. Kim
I'd be interested to hear who this loan is through. The APR% is a few points higher than I'd like though. My wife and I are looking to purchase a home this summer, so knowing all of the lenders who might work with us is especially helpful. Out of curiosity, what is your household income (if you don't mind sharing that), and did you apply with a co-borrower? Kim, who did you get your FHA through?
iamsamiam, if you can handle the notes right now and really want to get into a home, don't worry. Yes, right now, that's price you have to pay with your credit scores, but you can refinance in 24 months with good credit history. This high interest rate isn't a death sentence. Keller )
Who did you get the loan through? I am trying to get a mortgage and can't get approved for less than 20% down. Please tell me the lender. Thank you. Arthur mysterywalker27@aol.com
iamsamiam, Thanks for the email reply, I had a few more questions for you but the replyto address in the message caused a bounced message. Please send me another email with a good replyto address. Thanks. BTW, without speaking for iamsamiam, quickenloans.com has given good results for a few people that have been looking for mortgages.
As a new home owner myself, I offer you a big congrats. I would not worry about the higher interest rate. At least now you are paying for your home albeit a bit extra. When you were renting, all of your money was going down the toilet. When we signed our mortgage the rate was at 5.95% and the next week the rate was 4%. Damned if you do....
We went through a broker but the lender is Capitol Commerce Mortgage. It is an FHA loan. That's how you get the 3% down.
If there is any way on earth you can get conventional rates, do so. Even if it means renting for another year. The difference between current conventional mortgages and double digit rates is just one hek of a lot of money. There is no way in heck you'll build equity at 11%. Re-fi is easy to say and easy to do but, pay attention to cost. You'll pay closing cost with the orginal loan and then, on the re-fi you're looking at probably another 3% of the amount refinanced. Don't put money in a broker or mortgage company's pocket unncessarily. Get the right deal the first time even if you have to wait. You'll be dollars ahead.
If any one of you who are interested in getting a home loan are in Florida, I have an excellent person to contact. his website is www.peopleshomefinance.com We are 2 yrs post BK, we were approved for a house at 6.75 interest. No money down. Our scores at the time we started to qualify were in the high 500's, (we sat down in his office and asked what we needed to do to get on track, then 3 months later we filled out the appl) when we actually sat down and filled out the application, they were between 600-625. We are now in the process of having our house built and we move in this July. He can at least answer any questions you have to get you moving in the right direction and I would recommend him to anyone. My best friend went to him 4yrs post BK to refinance her house, was at 9%, he refinanced her at 6.5%. J
peoples home finance. He is an independent mortgage broker, and sells the loan after you get the house. You pay him nothing, he does the work for you.
Here is an example of the injustice of the fico farce at it's best. What extra value does Iamsamiam get for the extra money he's putting into the house??? *True but it's fleecing him.
It's not a bit it's tens of thousands more than it appears when you compare rates. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
