Mortgages with poor Credit- Recommended lenders and avoiding scams (loan, foreclosure, credit card)

[floridadreamer]

We are currently working on paying down things that are on our credit report- however we'd like to purchase a home sooner rather than later. We have two small children and are now in an area we know we want to stay in for awhile. There are so many foreclosures and shorts sale opportunities now, I'm going nuts thinking about having to rent for another year.

There's certainly no shortage of adverts online from companies claiming to do mortgages for people with bad credit-however we don't want to get scammed. Can anyone share info on companies they'd recommend we check out or to stay clear of completely?

[ChipL]

What state? FL?

Offhand, it sounds like you're gonna need FHA. How poor is your credit? Your score>

[TwiloMike]

Just how bad is your credit and for what reasons? My bank does a good deal of FHA business and we do manual underwriting on virtually every file.

[mcorrales]

I just refinanced through FHA and Chase Manhatten Bank. My original mortgage less than a year old was through Countrywide at 7.5% interest due to poor/fair credit (been a single mom all of my life with four kids). I refinanced after 8 months of early payments at 5.85%. Lowered my payment $150 a month which I still pay (want to pay off early). Had no costs and it was well worth the time, closed in 30 days. Know that Countrywide is out of the business but you might try FHA/Chase. By the way, we did put 15% down. Good luck.

[TimtheGuy]

Originally Posted by floridadreamer

We are currently working on paying down things that are on our credit report- however we'd like to purchase a home sooner rather than later. We have two small children and are now in an area we know we want to stay in for awhile. There are so many foreclosures and shorts sale opportunities now, I'm going nuts thinking about having to rent for another year.

There's certainly no shortage of adverts online from companies claiming to do mortgages for people with bad credit-however we don't want to get scammed. Can anyone share info on companies they'd recommend we check out or to stay clear of completely?

I would rent until you can qualify for a FHA loan. Go see a FHA lender and they will let you know what that time frame looks like and what steps you should take.

[renriq02]

more information is needed.

1. credit score
2. have you had any credit lates in the last 12months
3. have you had bk 13 in the last 12months, bk 7 in the last 24months, and/or Foreclosure in the last 36months.
4. what is your debt to income
5. can you put any money down

[floridadreamer]

Originally Posted by ChipL

What state? FL?

Offhand, it sounds like you're gonna need FHA. How poor is your credit? Your score>

We do live in Florida again as of April.

Lat time I checked the score was in the 400's which I know is Poor, but a lot of the major things (ie; car repossession 2 years ago and a couple of credit cards) either show paid in full or they will soon. But, I know it takes awhile for the actual score to go up which is why I am asking. Also, I think my score may be slightly better than his but I am not employed which was a problem last time we tried to purchase a car.

Originally Posted by TwiloMike

Just how bad is your credit and for what reasons? My bank does a good deal of FHA business and we do manual underwriting on virtually every file.

It is considered bad I think, but what I am wanting to know is whether it's possible to get a mortgage while some things are being paid such as medical bills or do we absolutely HAVE to wait until EVERYTHING is paid and the score improves?

Originally Posted by mcorrales

I just refinanced through FHA and Chase Manhatten Bank. My original mortgage less than a year old was through Countrywide at 7.5% interest due to poor/fair credit (been a single mom all of my life with four kids). I refinanced after 8 months of early payments at 5.85%. Lowered my payment $150 a month which I still pay (want to pay off early). Had no costs and it was well worth the time, closed in 30 days. Know that Countrywide is out of the business but you might try FHA/Chase. By the way, we did put 15% down. Good luck.

I am so ready to be in our own home, I would gladly pay 7.5% for a year or two. And thanks for letting me know Countrywide is one that's out of business because they are the only one that came up online that I had actually HEARD of.

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Thanks to those that replied so far. I do know that FHA is an option once things are paid and we pay ALL the bills on time for a year including rent etc.. and the bank stays in the black for 12 consecutive months. It's just hard when one is so ready to be settled.

Does anyone know of a reputable company other than Countrywide that does higher interest mortgages with our current situation?

[renriq02]

1. Do not pay off any medical bills. FHA ignores medical collections.
2. Payoff all JUDGEMENTS...(not collections)
3. Try to payoff the repo if there's a balance
4. Try to pay the newer collection accounts.


make sure to do it in this order.

Do you have any student loans or anything that isn't current?

[floridadreamer]

Originally Posted by renriq02

more information is needed.

1. credit score
2. have you had any credit lates in the last 12months
3. have you had bk 13 in the last 12months, bk 7 in the last 24months, and/or Foreclosure in the last 36months.
4. what is your debt to income
5. can you put any money down

We don't have any bank loans at all now, and we own both of our vehicles outright. Other than medical bills, I think we just owe one judgement from a cell phone contract a couple years ago. That is on my husbands credit but unfortunately he's let it go on and isn't very good about paying his bill for the current cell phone on time.

Until the past two months we were doing well at keeping things paid on time etc... but then - we went on vacation and had a child about two weeks apart. The vacation involved several people and had been planned for over a year. We went a little overdrawn and got a couple of NSF on the bank.

We are on one income of $50,000/yr and would like to qualify on one income anyway because I will probably stay home for awhile with two little ones. It would take about 3 months, but we could save a 3% downpayment pretty easily for a $100,000 house if we put our minds to it.

Originally Posted by renriq02

Do you have any student loans or anything that isn't current?

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I have one student loan for about $2500 that's currently in deferment because I had a baby recently.

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Our outgoing is pretty minimal to tell the truth. We've just spent so much time and money moving around the past 4 years for different contract positions that we never had chance to save anything or get caught up. We paid off the repoed car about 3 months ago, we'll have the last credit card judgement paid this month and then there's just a thing from Cingular Wireless (which is now part of AT&T). Does anyone know how we'd go about disputing that one since the company doesn't exist any longer? What he owes them is mostly fees anyway.

[renriq02]

you can't have any credit lates in the last 12months.

ALL judgements must be paid. Collection accounts are different than judgements.

[quote=floridadreamer;4122230]

Originally Posted by renriq02

more information is needed.{/QUOTE]

We don't have any bank loans at all now, and we own both of our vehicles outright. Other than medical bills, I think we just owe one judgement from a cell phone contract a couple years ago. That is on my husbands credit but unfortunately he's let it go on and isn't very good about paying his bill for the current cell phone on time.

Until the past two months we were doing well at keeping things paid on time etc... but then - we went on vacation and had a child about two weeks apart. The vacation involved several people and had been planned for over a year.

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I have one student loan for about $2500 that's currently in deferment because I had a baby recently.