How much down are you able to put? How long have you been at your job? How much is the house your buying and is there any equity in it? Hopefully no 30 day lates or more in the past year. Are you a first time home buyer? etc,etc,etc
These will be typical questions that a mortgage broker will probalby ask. Shop around and see who can quote you the best rate. Don't have them pull credit just tell them what your trying to do and your credit score andsee what they have. Somebody will have a program out there for you. If your going to live in it than there will be more programs for you.
it all depends on how expensive the house you are buying, how much you have to put down, type of ownership (OO, 2nd Home, NOO), debt to income ratio, and quality of your credit (ie. banktrupcy, charge offs, collection, liens, and etc.)
Actually 630 is not bad. Usually slash hold for conforming loan is 620 middle socre. You could get approved with lower score, but usually there would be additional fee.
If you are talking about Owner Occupied prop, you can easily get 100% financing. Assuming that you did not have any banktrupty in last two years or big charge offs in last two years. If you have charge offs other that medical bills in last two years, as long as you pay for them, you can still get 100% financing. You can even settle the charge offs. The most of 100% financing programs only require for you to put $500 into the process. The rest of closing cost can be paid by the seller, or third party (real estate broker or Mtg broker), or gift. It varies by program to program. I am only speaking in a general term.
I have to warn you though. Do not think that you can buy an investment property as a primary resident, if you don't want to go to a federal prison.
I live in Atlanta. I've been working for the past year for a brokerage making around 35K but am now unemployed about to start a new job making around 40K. I'd be looking to buy sometime next year. Any idea what kind of rate I could expect?
I have a similar situation. I have old charge offs of about $20,000 all of them at least 5 years old or more. Perfect credit for the past 3 years. At last check, my credit score was around 630, about a year ago. I want to start investing. It's been what I've wanted to do for the last 15 years. I spoke to a bankruptcy lawyer last week and am considering it but want to weigh all my options. Either way I have to do something, because I want to get on w/ doing what I've always wanted to do. REI. Are there programs out there for me at 100% for investment or should I go ahead and file and rebuild my credit?
This is exactly what I'm trying to find out. I'm a realtor, so I have quite a few connections in the lending world. The team of Realtors I work on (4 of us) close over 105 transaction sides a year. So I've watched a lot happen over the last 4 years and have learned a ton about the Real Estate Business. Unfortunately, It doesn't teach how the credit scoring system works. I've talked to a couple different lenders about my situation but just in general conversation, never asked to actually be pre-approved or anything. I guess my big question is, will those write-offs that are on my credit, ever drop off and boost my score? Will they always stay and drag my score down?
As has been said a few times. 630 is not bad and can get you 100% Owner occupied. It shouldn't have a problem getting you 90-95% financing on an investment property either. That would be a way to start, or also sub-2.
As I see above postings, I would NOT file for Bankrupcty. After a few years of having a charge off or lates, you credit score will already start to go up (from my own experience, about 5 points a months just by making monthly payments on time. If you try to settle or file, then the 7 year clock resets and starts all over again!
I had a $10,000 credit card that I just stoped paying and sent them a notice to stop contacting me. By law, they must stop and send your account to charge off.
Now, 2 years laters, I have a 648 middle score.
So, don't file, just walk away and start improving your payments on time. Need need to restart the 7 year clock.
The program does not have to be 2 loans a lot of times it can be done with one loan and no MI (mortgage insurance some know it as PMI private mortgage insurance) its all in who the loan is with and what programs they have around
How much down are you able to put? How long have you been at your job? How much is the house your buying and is there any equity in it? Hopefully no 30 day lates or more in the past year. Are you a first time home buyer? etc,etc,etc
These will be typical questions that a mortgage broker will probalby ask. Shop around and see who can quote you the best rate. Don't have them pull credit just tell them what your trying to do and your credit score andsee what they have. Somebody will have a program out there for you. If your going to live in it than there will be more programs for you.
it all depends on how expensive the house you are buying, how much you have to put down, type of ownership (OO, 2nd Home, NOO), debt to income ratio, and quality of your credit (ie. banktrupcy, charge offs, collection, liens, and etc.)
Actually 630 is not bad. Usually slash hold for conforming loan is 620 middle socre. You could get approved with lower score, but usually there would be additional fee.
Is it easier to buy if you're going to live in the property? Also, is money down necessary or are there ways around that?
Thanks.
If you are talking about Owner Occupied prop, you can easily get 100% financing. Assuming that you did not have any banktrupty in last two years or big charge offs in last two years. If you have charge offs other that medical bills in last two years, as long as you pay for them, you can still get 100% financing. You can even settle the charge offs. The most of 100% financing programs only require for you to put $500 into the process. The rest of closing cost can be paid by the seller, or third party (real estate broker or Mtg broker), or gift. It varies by program to program. I am only speaking in a general term.
I have to warn you though. Do not think that you can buy an investment property as a primary resident, if you don't want to go to a federal prison.
I will definitely be living in the first prop I buy. Do you think the rate would be too high? Any idea what it might be?
Where do you live? We might be able to help you. I cannot quote any rates without getting other facts together such as debt to income ratio.
I live in Atlanta. I've been working for the past year for a brokerage making around 35K but am now unemployed about to start a new job making around 40K. I'd be looking to buy sometime next year. Any idea what kind of rate I could expect?
Thanks.
I have a similar situation. I have old charge offs of about $20,000 all of them at least 5 years old or more. Perfect credit for the past 3 years. At last check, my credit score was around 630, about a year ago. I want to start investing. It's been what I've wanted to do for the last 15 years. I spoke to a bankruptcy lawyer last week and am considering it but want to weigh all my options. Either way I have to do something, because I want to get on w/ doing what I've always wanted to do. REI. Are there programs out there for me at 100% for investment or should I go ahead and file and rebuild my credit?
This is exactly what I'm trying to find out. I'm a realtor, so I have quite a few connections in the lending world. The team of Realtors I work on (4 of us) close over 105 transaction sides a year. So I've watched a lot happen over the last 4 years and have learned a ton about the Real Estate Business. Unfortunately, It doesn't teach how the credit scoring system works. I've talked to a couple different lenders about my situation but just in general conversation, never asked to actually be pre-approved or anything. I guess my big question is, will those write-offs that are on my credit, ever drop off and boost my score? Will they always stay and drag my score down?
630 is not bad at least in CA as long as you have above 620 you can do 100% financing with stated income/stated asset
hope this helps
Dan
As has been said a few times. 630 is not bad and can get you 100% Owner occupied. It shouldn't have a problem getting you 90-95% financing on an investment property either. That would be a way to start, or also sub-2.
As I see above postings, I would NOT file for Bankrupcty. After a few years of having a charge off or lates, you credit score will already start to go up (from my own experience, about 5 points a months just by making monthly payments on time. If you try to settle or file, then the 7 year clock resets and starts all over again!
I had a $10,000 credit card that I just stoped paying and sent them a notice to stop contacting me. By law, they must stop and send your account to charge off.
Now, 2 years laters, I have a 648 middle score.
So, don't file, just walk away and start improving your payments on time. Need need to restart the 7 year clock.
The program does not have to be 2 loans a lot of times it can be done with one loan and no MI (mortgage insurance some know it as PMI private mortgage insurance) its all in who the loan is with and what programs they have around