I started this credit repair journey mainly to be able to get a mortgage that wasn't fha. Finally I have all my scores up between 613 and 660. Recently while window shopping for houses a mortgage co loan officer told me that I could get a mortgage loan with my current credit situation and fico scores. I have only an Amex charge off that is unpaid for 5k. I have disputed it ad-nauseum including OC disputes and all I get is verification from the CRA's but no proof of debt from Amex. I have mailed them ITS letters and requested them to send me a fraud affidavit to no avail. They just send me the cookie cutter letter saying that the tradeline is mine. Can I really get a loan under these circumstances? The debt is not in collections. Thanks
yes you can still get a loan but probably not the best rates... the mortgage companies take the MIDDLE score (not an average of all three but the actual median)... so if you have 613, 645 & 660, they will take 645. anything above a 640 (and even in some cases a 620) will most likely receive a mortgage with most lenders, but you won't get the best rate... for that, they are looking at scores that have a minimum of 680 (in some cases, 700, 720 or higher).... so, if the going rate is 5.5%, you will likely get 6.5% or higher... (it's just like credit cards, you won't get the best deal til your credit is better). they typically don't care about the bad items, as long as they are at least 2 years old and you have had positive credit lines for the past two years. however, those bad itemsdo affect your score... if you want to buy a house now, you can, but i would recommend you try to get those scores up a little higher first so you can get a better rate (however, you never know these days since the rates are pretty low---lowest in the past 40 years---and all they can go is up.... you may be better off settling for 6% now, then their lowest in a few years which could be much higher). good luck....
kalinka, DH just got a mortgage thru Wells Fargo, Emerging Markets program. They really worked with us, as he only had EQ that would score. His only score was at 639. They accepted the 1 score, all we had to do was put outside sources on his mortgage report. Such as, utility bills, etc. We locked at 5.875% almost 2 months ago, then two days later they went down to 5.4%. So, it can be done.
Re: Re: Mortgage people pls advise I forgot to add that he also had 1 or 2 collections on there that they didn't even ask about.
thanks a lot everybody. I really don't mind paying a couple or 3 points more right now. If rates remain low I could re-fi when all my derog falls off next year. If the rates go up big time. then I'l count my blessings and won't. I'll let board know what happened.
Re: Re: Mortgage people pls advise Good LUCK!! I wish you the best... I'm sure you will get something good!
Re: Re: Mortgage people pls advise ma_bear, What do you mean by "EQ that would score'??? Where are you guys located? I am in Calif and EQ is my best report and I am hoping I can use this Wells Fargo program to get a house. Thanks.
Re: Re: Re: Mortgage people pls advise Were the collections open or paid? Also why does adding outside sources (utilities) mean and why did you have to do it? Thanks!
kalinka Your scores normally would allow you to get a conventional mortgage under some of the expanded qualifying that is available through some of the national lenders such as Wells Fargo's Emerging Markets Program. However, the open charge-off most likely will cause you to be declined. There are other types of mortgages available to you, though their rates will be a couple of points higher. These are your sub-prime mortgages. Good luck to you. fla-tan
does anyone know of a sub prime lender? I am beginning to look, but I am having trouble. My FICO scores are in the mid 500. I have low debt now and can put down 15 to 20 percent, and am willing to pay a higher interest rate. Any info would be appreciated.
Maggie, With 15 to 20 percent down, you should be able to get financing. While every lender is different, for most in the sub-prime market, 550 is an important cut off point in terms of rate and LTV. If your middle score is less than that, you might want to concentrate on that one to see if you can get it up some. I wouldn't recomend a specific lender for this deal. There are just too many variables involved in a deal like that. Rather, I'd recomend a broker experianced in sub-prime loans. Heck, if you live anywhere near Kansas City, I'd do it myself.
Re: Re: Mortgage people pls advise MaggieQ There are many lenders and options open to you when you are putting that much down. However, without knowing what causes your credit scores to be in the middle 500s a I can't really provide you with real advice as to which way to proceed. Good luck to you. If you wish to, you can email me and I can then ask you the types of questions that will allow me to provide more specific information. fla-tan
Re: Re: Mortgage people pls advise Thank you all for the info. I feel alot better now. I will be contacting some sub-prime lenders soon.
