I've recently been transfered to another state, so we need to get a house quickly. My wife and I went house hunting and found a great property that's in pre-forclosure at a great price. Unfortunately, when I went to apply for a mortgage I found out that my scores are pretty low right now... between 480 and 502. I'm working with countrywide and the agent told me to pay down a card that was over the limit and gave me a few other things to do in the hopes of doing a rapid rescoring in a few days. He said if he can get me over 500 then he should be able to get me a loan. But I'm worried about my interest rate with a score that low, however. Does anyone have any idea about what rate I should expect for a subprime loan right now? If it helps, the purchace price is about 180K and I'm planning on putting about 10% down. Also, the house is seriously underpriced because it's in pre-forclosure. It's a townhouse and when our real estate agent checked the comps, he saw other identical units have sold for $220-260K in the past few months. There's no reason that this unit shouldn't appraise for that much, so I'll really be financing like 70% or 75% of the value of the home. I'm not sure if that helps or not. Finally, my wife's score was like 620-690, but the problem is that she only works (very) part time and doesn't bring in nearly enough to qualify for a loan on her income. Would it be worth trying a no-doc loan in her name? Will her scores qualify for a no-doc loan? We'll have no problem affording the home with my income. Thanks much, Brett
Try finding a private party lender e.g. a person who finances properties (for residual income) instead of using an institution (banks, loan/mortgage co's, etc). They might be more lenient with your credit situation in light of other proof of stability you can show him/her. The 10% down is an incentive as well. The fact that you have lots of instant equity would make it appealing as well, since if they had to foreclose, they would make more money that if you paid it off. If you can convince them that they would rather have the property than your money, they will give you the loan. JMHO.
