Hi, I was wandering if anyone can give me some advice on a loan.Here is our situation.We own a 1999 redman doublewide on 1.52 acres and we owe about $85,000 on it.We haven't had it appraised yet but we hope it would at least appraised at $95,000.My husbands fico is between 580 and 620 depending on credit report.We need at least $8,000 for dental work that I need done but we would like to borrow more if we could for home improvement.My first question is, What kind of loan should we try to get? Could we even get a loan with cash out for our home? Most of his problems on his credit report are more then three years old.Alot of chargeoffs and 120 late pays and two repos.However he has never been late on our mortgage.And last year in Feburary we purchased a car and have never been late.We are paying a high interest rate but are planning to pay off early.We have learned from our past mistakes and we no longer even use credit cards.He has a good paying job now with income above $50k and he has been with this company for 4 years. Do we have a chance to get a loan? And if so can anyone point me to a company who might give us a loan?Thanks for the help!
I would go with a Home Improvement type loan that can actually lend you up to 125% of your Home's Value (LTV). However, to get that type of a loan, your bank will require contractor's bids to see the type of work done. (Because of your residence, you must have it PERMANANTLY fixed or grounded to the lot.) Based on your post, you have 2 positive TL reporting: Mortgage & Car loan. More positive tradelines USUALLY equal better credit. But that doesn't mean more TL with BALANCES! To build your credit, I recommend that you get at least 2 more CREDIT CARDS to help you build your credit file of good credit references. Your credit is currently "damaged", so I recommend applying for the Chevron Gas card as another step. You may get the Credit Builder card for a $30 annual fee, but the positive tradeline will be worth it. http://www.chevron.com
Thanks for the reply! I live in NC.After I looked at my credit report closer I think I am going to wait another year or two.Most of the bad stuff will fall off then and that will help get a better interest rate.I'll just have to save harder or borrow from family for the dental work I need now.By the way the home is on permanant foundation.And I know that having a credit card in good standing will help my credit but I will never have a credit card again.I know it might come a day when I wish I had one for example if my washing machine needs replacing or some other high ticket item.But the way I try to look at is ,is I would probably use it on something I really don't need and if I can't save for it or buy it now or put it on layaway I don't really need it!My mother's friend help me realize this.If you think about you really can get by without a credit card.She is 52 years old and has never had a credit card and is very well off with a good credit rating because she has auto loans and two mortgages that have never been late.I really don't like the idea of borrowing on my home but I see this as an investment plus I have to have the dental work.Sorry this was long but Thank You for the advice.Hopefully my attitude about credit will help my credit report improve!
OK you arent gonna be able to get a 125% loan because it is a double wide. With your scores you are going to want to look at some freddie mac programs that will allow you to get the cash back and lend high on the ltv ladder. You will find it hard to get many of the high ltv lenders to lend on the m/h properties and going with the obscure freddie/fannie programs is going to be your best..and probably only bet. Dont be suprised if a lender says no at first...not every lender has all of the products so you will need to get a couple of different lenders to shoot you a quote WITHOUT PULLING YOUR CREDIT REPORT and tell you if they even have a program in your credit range.
