L/O And Credit Score
hello all, just a quick question..how low of a credit score would be considered enough to refi on a two year L/O or bond for deed..i know this is probably a question for the lender but thought i would pose this to yall..i have four houses ready to go L/O or bond for deed and some have stated a FICO as low as 425..they definately have the financial ability, however, i dont want to put someone in that i know cant qualify for a refi..any insight would really help, if yall could let me know your expieriences with this...thanks
regards-pat
Just a suggestion - make a clause stating that if they aren't able qualify after 2 years for a loan then some penalty will occur. (if they can't get their scores up to 500 in 2 years there are some serious problems going on)
As always, check with professionals (lawyer, CPA, etc.)
My $.02
I am a mortgage broker and generally 500 is the minimum middle score to get financing. Few, if any lenders, will go below that even if the borrower has the ability, because the score shows they have not done well with their current situation. Also, at a 500 score you would be limited in finding a lender. A 520 score would allow the borrower much more choice in lenders. Hope that helps.
[ Edited by Otaymesa on Date 10/03/2003 ][ Edited by Otaymesa on Date 10/03/2003 ]
I am a lending broker as well and 500 is the magic cutoff number.
But, I have seen some lenders that don't use FICO scores at all!
I can tell you more if you want...
Thanks
Pat (nice name, eh?)