Mortage time!

Some one plase throw me a bone here! Which mortgage companies are going to give a loan with a median score of 580? Please help me out here!

Nascar, what's the mortgage rush? You've been discharged 2 1/2 months and have credit scores in the 500s. Chances are good that the only lenders who will even look at you are lenders you don't want to have (in other words, predatory scumbags).

Can you hold out long enough to increase your scores into at least the mid-600s first so you won't get totally ripped off on a mortgage APR that could send you right back into financial disaster?

Nascar, what's the mortgage rush? You've been discharged 2 1/2 months and have credit scores in the 500s. Chances are good that the only lenders who will even look at you are lenders you don't want to have (in other words, predatory scumbags).

Can you hold out long enough to increase your scores into at least the mid-600s first so you won't get totally ripped off on a mortgage APR that could send you right back into financial disaster?

Thank you for your concern, but you have no idea what I pay in rent! Even the worst rate would be better then what I'm into now! Plus there are developing circumstances...

As lrprn has said, you'll get stuck with a sub-prime, predatory lender. These types of lenders will most likely base the loan on the equity of the home (because they usually have rediculously high appraisals), rather than your ability to repay......and when you miss payments for whatever reason, they'll get your house and you'll have no protection from the deficiency because you can't file BK for another X amount of years. Therefore the lender wins big.

Just be patient NASCAR. Your time to buy a home will come.....and sooner than you think if you work at hard enough.

Nevermind.... Please close! I'll figure it out

Thank you for your concern, but you have no idea what I pay in rent! Even the worst rate would be better then what I'm into now! Plus there are developing circumstances...


That's the Rental Market here Nascar. For what we pay, we could be living in a $250K house. Rents are just outrageous!

As others have told you, so soon after BK, you'll probably wind up borrowing from a sub prime lender. Outrageous interest rates that will force you to buy less house than maybe you want or need.

BUT on the flip side,......... If this is something you need to do sooner rather than later, you know what you're getting into. AND you can refi in a year or so after a good payment track record and get a better rate.

Maybe MTG_BANKER_OH can offer some suggestions for you. You might try and PM him.

see what the folks at creditboards suggest...

Some one plase throw me a bone here! Which mortgage companies are going to give a loan with a median score of 580? Please help me out here!



I just refinanced to get out of BK, and I agree with the others...WAIT. I am already a home owner, and although you may be able to afford the mortgage, there are very steep expenses that come with being a homeowner. None of the repairs or emergencies that come with the "pride of ownership" are ever forseen... Everything that can go wrong seem to go wrong when there is no extra money to pay for it.

Again, my advice is to wait, BUT, if you are dead set on buying a house, then I would recommend using a local mortgage broker. I used one here in Arizona, and I submitted one application at their office, and they called me a couple of days later with 5 different loan appovals.

The good thing is that they only pull your credit one time, you will know exactly what companies are willing to finance you, and at what rate. They may advise you to wait, depending on your overall file... But, at least they can tell you where you need to be and what you need to do to be approved later on. Good luck!!

All other things being equal (income, employment, etc), you can expect to get a 100% single loan with a 580 middle score at 11-12% interest rate. Yes - this is a very high rate, however, if the payment fits your budget and you really want to own property, loan programs are available. All other applicable closing costs would apply.

All other things being equal (income, employment, etc), you can expect to get a 100% single loan with a 580 middle score at 11-12% interest rate. Yes - this is a very high rate, however, if the payment fits your budget and you really want to own property, loan programs are available. All other applicable closing costs would apply.


Actually, an 11-12% interest rate, I feel is VERY high.

8.5-9.5% is more accurate, I would think.... that is of course, if you are dealing with an honest broker, who isn't charging you for points on the back end by giving you a higher interest rate, so he/she can make an exorbitant commission....

8.5-9.5% is more accurate, I would think.... that is of course, if you are dealing with an honest broker, who isn't charging you for points on the back end by giving you a higher interest rate, so he/she can make an exorbitant commission....

If you can find an interest rate for 8.5-9.5% less than one year from a bankruptcy, 100% financing, with a 580 middle score...go for it! And then let me know so I can get my mortgage there!

2 years ago, a 575 middle credit score could get you a 6.75% on your first and a 9.5% on your 2nd doing an 80/20 loan. As rates go up and the market slows, lenders tend to toughen guidelines and raise rates and restrictions on the lower end credit scores and seasoning from a bankruptcy.

Paying an 11.75% interest rate on a mortgage is appropriate for some borrowers. Your other options are to wait or raise your credit score to get a better program.

If you can find an interest rate for 8.5-9.5% less than one year from a bankruptcy, 100% financing, with a 580 middle score...go for it! And then let me know so I can get my mortgage there!

2 years ago, a 575 middle credit score could get you a 6.75% on your first and a 9.5% on your 2nd doing an 80/20 loan. As rates go up and the market slows, lenders tend to toughen guidelines and raise rates and restrictions on the lower end credit scores and seasoning from a bankruptcy.

Paying an 11.75% interest rate on a mortgage is appropriate for some borrowers. Your other options are to wait or raise your credit score to get a better program.

You shoud be able to get a loan in the 9%-10% range, your options improve drastically if your scores are over 600 and then more options open up to you over 620. Many lenders have gotten out of doing loans at a 580 with a recent BK, there are lenders with rates in the 11-13% range but you need someone that knows where to look to get a better rate.

You shoud be able to get a loan in the 9%-10% range, your options improve drastically if your scores are over 600 and then more options open up to you over 620. Many lenders have gotten out of doing loans at a 580 with a recent BK, there are lenders with rates in the 11-13% range but you need someone that knows where to look to get a better rate.


is there a time limit also you should be in,

if your score is 628 7 months after discharge, would you still get a good rate, even if it is less than a year of discharge?

thanks

dan

Some one plase throw me a bone here! Which mortgage companies are going to give a loan with a median score of 580? Please help me out here!

If you have a decent down payment, say 10 grand or more, most n e one will finance you, even if u have very bad credit. The problem is that u will need to shop and get the best rates.

If you can find an interest rate for 8.5-9.5% less than one year from a bankruptcy, 100% financing, with a 580 middle score...go for it! And then let me know so I can get my mortgage there!

2 years ago, a 575 middle credit score could get you a 6.75% on your first and a 9.5% on your 2nd doing an 80/20 loan. As rates go up and the market slows, lenders tend to toughen guidelines and raise rates and restrictions on the lower end credit scores and seasoning from a bankruptcy.

Paying an 11.75% interest rate on a mortgage is appropriate for some borrowers. Your other options are to wait or raise your credit score to get a better program. It really depends, also, where u are trying to get the financing from i.e. which state, some states offer better deals than others.

danohio2831, if you have over a 620 and you are less than 12 months from your BK, your rate will only be about .25% higher than someone who has been morethan 12 months since discharge.

is there a time limit also you should be in,

if your score is 628 7 months after discharge, would you still get a good rate, even if it is less than a year of discharge?

thanks

dan


I am not saying the rate is great but it is not all that bad considering the circumstances, you can get a loan in the 7's on the first and around 11-12 on the second or around 9% with one loan. Your better rates are come about 2 years out of the BK then you should be able to get close to conforming rates or an FHa loan.