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We are in the process of moving from CA to AZ. We will be selling our CA home and making a large profit. We would like to buy a 4-5 Bed home for under $300K. However, we have poor credit (FICO scores 540 and 620), a bankruptcy (Discharged 09/2013) and a history of late payments (due to job losses). We are willing to put a larger down payment as long as can find a lender who will work with us. We are open to paying more in interest then refinancing in a year or two. Any suggestions??
You will probably be able to qualify for an FHA loan. Anything under a 580 requires a down payment of at least 10%. Since you should meet that requirement, I would think you would qualify.
I agree that the 10+% down FHA would work, if the lender is ok with the late pays. Depends on how old those late pays are. They usually want to see 12 months of on-time.
You will probably be able to qualify for an FHA loan. Anything under a 580 requires a down payment of at least 10%. Since you should meet that requirement, I would think you would qualify.
I'm 99.9% sure FHA will be your only option.
Not true. We were right at 580 and did not need 10%. We could have but it wasnt required. We also dont have an FHA loan either.
since one has 620 and other has 540, our mortgage co went with who had the highest middle score. Might be something to look into as well.
We are in the process of moving from CA to AZ. We will be selling our CA home and making a large profit. We would like to buy a 4-5 Bed home for under $300K. However, we have poor credit (FICO scores 540 and 620), a bankruptcy (Discharged 09/2013) and a history of late payments (due to job losses). We are willing to put a larger down payment as long as can find a lender who will work with us. We are open to paying more in interest then refinancing in a year or two. Any suggestions??
Thanks in advance for your kind assistance!
Pay off as much as you can on your credit, especially focusing on the 540 side of the fence. Leave credit cards open and empty. Have lender perform a credit update for you. See where scores are after that.
Was the BK a Chapter 7?
It's very difficult to project where scores might go, are there collections and high-balance credit cards on credit now?
It's difficult to imagine that we couldn't get that 540 to 580+.
We have talked to a couple of lenders and they told us that my FICO score needed to be above 580 before I could be considered for any loan - FHA or Conventional. They basically told us that we would need to get a hard money/portfolio loan. Does anyone have any idea what the interest rate would be on such a loan?
We have talked to a couple of lenders and they told us that my FICO score needed to be above 580 before I could be considered for any loan - FHA or Conventional. They basically told us that we would need to get a hard money/portfolio loan. Does anyone have any idea what the interest rate would be on such a loan?
You need to find the lender(s) that allow for the 500 score. FHA allows for a 500 score. It's the lenders that have "overlays" that would prevent this from allowing them to process the loan. You need to keep calling around to see what lenders in your area allow for the 500.
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