Payday Loan Fairy

I have been trying for several month to get a loan for a new home, but I have had no success at all. Everybody that I contact or apply with give me the same answer all the time, which is " Sorry we can't help you at this time due to your poor credit rating. If no one will give you a chance then how can you fix your credit situation? I have been employed for the past five years with the same company. I don't make a whole lot a year. I make about $40,000 a year. I think I can afford a new mortgage. I would like for my children to grow up in a better situation than I did. I admit I have made some mistakes financially, but are those mistakes going to haunt me forever? I just want a chance to live the American dream of home ownership. Please don't mention credit repair, I have tried those companies and my credit sitiuation is was worse after I finished the repair program. If you do not have positive input please don't respond to this question. Rip-off artist need not respond.

I can tell you this, it is still really easy to get a mortgage, even with bad credit.

If you can't find someone to give you a loan, that means you are way too risky for a lender. That should tell you that it is not the time to be thinking about buying a home. You should continue renting, saving a down payment, and improving your credit score by paying off debt and paying bills on time. Your past mistakes will hurt you for up to 7 years.

2007-07-15 17:01:41 by Tracy C

Have a credit score of around 620-640. Past wage garnishment (a year ago) but paid off early. Past car repossession (reason for the garnishment.) Other small things charged-off. Only looking for a mortgage loan of $25K or less with $10K for down payment. With todays economy, is there any chance of finding a mortgage company? What kind of rates would I be looking at?

I won't says it's impossible - only a lender who can look at your actual data could say that - when people over 700 can't always get loans, I'd say the chances aren't great.

You have nothing to lose by checking into it though. Just go talk to a couple of lenders and find out. Having a down payment would be a huge help to you.

2008-12-18 10:40:27 by Kelly D

We need to get a loan ASAP. We are in a lease to own agreement and time is about up. We have been doing things to improve our credit. A lot of neg have come completely off and others have been paid. We thought our score had increased but today we found that after all this time it only went up about 4 points. 579 536 505 are the three scores. We have about 8900 invested in the house rt now. We still need to get a 100% loan. I know the interest will be high but we dont want to give up this house. If any one can help please let me know. Thanks

With scores in the mid to low 500 range, it will be almost impossible to find a conventional lender that will get a 100% loan for you. Private money is possible but most private lenders don't do 100% financing with whats considered risky borrowers. I see you at least took steps to improve your credit score, however I would need to know what you did. There are a lot of misconceptions about credit. Many people are shocked to find thier credit score decreasing even though they have never made a late payment in thier lives. Others close accounts or payoff collection accounts only to find out thier credit score actually went down. In the end, the only two things that can increase your credit is smart spending and time. There are several companies out there that can remove things off of your credit report but only things that are erroneous. If you owe it, you cannot legally take it off. Also, many of these companies will ask for up front fees that can be quite pricey. I had one client that paid $5000. This is also illegal under the Credit Report Organizations Act. I have had clients have one of these companies remove tradelines off of thier credit reports, only to see them reappear a few months later. There are good companies that will help you with your credit situations and they only charge $60 to $100 a month. I have attached a link for you.

You can also ask your landlord to carry a second mortgage. It is possible to get a loan for about 80% of the sales price and if your landlord is willing to become the bank on the 20% left over, then you can accomplish what you want. Your landlord would get 80% of the sales price up front and receive payments on the remaining 20%. After a year or two, you can refinance to pay him off. Not exactly the best way but it might be worth a try. I have seen people in your situation also find a new landlord that is willing to give them the same agreement as the previous landlord. The new landlord would buy the house, give you a new lease to own contract which would give you some more time to improve your credit rating. Check with a good mortgage broker in your area since laws vary from state to state. If you live in the western US then check out the link to a mortgage company I know that specializes on the subject.

Also there are several mortgage brokers that will tell you to use opt-out to increase your credit score. This does not work. There is nothing in the fico, beacon, or empirica algorithm that addresses opt-out. All opt-out does is prevent your credit file from what are called "soft" inquiries so your information is not released to other outside entities such as credit card companies. Although, this will decrease the amount of junk mail you get, it does nothing for your score. Contact the credit bureaus for more info.

Hope this helps.

2007-05-21 14:04:41 by sexyT

My rent is more than a house payment would be!! Wanting to work with a trusted company where I won't get screwed over! HELP!!!

That depends on how bad the credit and whether or not you have a down payment. Having money to put down on the home can usually offset bad credit. You still may pay a higher interest rate (due to credit scores), but you can still be a home owner.

If you are looking for a 100% LTV loan and you have bad credit you are out of luck. Lenders require a FICO of 680+ for almost all 100% purchases.

2008-03-27 09:15:51 by Becky

I am trying to apply for a mortgage loan to get a house. I just got out of the military and was deployed for 3 of the 4 years and sometimes I didn't pay bills. How do I explain that. I have already started to pay bills off and fix my credit.

I don't know if it will help to give them reasons you didn't always pay. If you think it will help explain that you couldn't get your mail out due to being in a war. If you didn't have a support system at home like parents that could handle your accounts while you were deployed explain why.
You may have to wait to buy a home until you have good credit and are out of debt.

2008-12-10 22:08:51 by Suzie

search this in google:

"down to 580" mortgage 100%

It will bring up all the lenders who are advertising 100% financing down to a 580 credit score, of which there are hundreds. Alternatively, you could search with

"580 credit score" 100% mortgage

and this will bring similair results. I say 580 because that is the minimum score that you must have to get 100% financing, no matter where you go. However, the interest rate will be high. Good luck!

2007-01-14 17:34:36 by di1913