Bad Credit - Can i catch a mortgage?
Is it possible to get a 100% financing mortgage with credit score around 525? I am not concerned with the interest rate- I just want to bring back into a home first then refinance. Also, Does anyone know what the highest interest rate you can carry on a home loan? Thanks!
Answers:
I'm not sure where on earth you're coming from with this.
You're basically asking a lender to believe that (1) you will magically find a road to pay back 100% of the cost of the exotic home, with interest, (2) you're a safe bet when you won't risk a dime of your own money on the purchase, and (3) that the bazaar will suddenly reverse to the point you'll flip a house if you need to to repay the loan.
Maybe you think it's still March 2008. You will never find a lender prepared to accept this risk without collateral. Or to put it another way: You will never find a lender to finance you 100% in need security regardless of you credit score. You will never find a lender to nouns you part way near a crappy credit score. IF you find 20% down, you MAY find a financier to put up the rest WITH a significantly higher credit evaluation; but plan on a pathetically high rate.
The days of getting into a home simply because you "want" to are long, long gone.
Sorry - no bank is going to touch this one. Why do you believe they are in so much trouble? They lent money to people next to no money down and bad credit, so the first bump in the road and the homepurchaser go into default.
Also, refinancing will cost you thousands of dollars, and there is no guarantee you will know how to do this if the value of your home doesn't go up.
Do yourself a favor - if you own some spare cash, pay sour whatever is causing your credit ranking to be so bad, save up a downpayment equal to at lowest possible 5% of the purchase price of the house, then go shopping.
This site has some great, bad credit loan option. Found it useful.
http://badcredithomeloans4u.blogspot.com/
creditreport.undonet.com - try this service to boost you credit evaluation before getting loan. After credit repair you can get the loan near minimal interest rate.
Unless you qualify for a VA loan it wouldn't matter if your credit scores be 825 - no one has 100% financiing anymore. Even the FHA back loans require 3.5%
So the first part of your first question is no, it's unworkable. The second part of your first question have the same answer. It's not possible to return with a mortgage today with a credit score of 525. A credit chalk up of 525 means you make a need of not paying what you owe. Why would someone make a very voluminous loan to someone who is in the habit of not paying what they owe? Guess what? They don't do that.
Refinancing isn't undemanding and it isn't cheap. You essentially pay closing costs all over again. Some states consent to lenders put pre-payment penalties in so that the lender make a lot of money when you go to re-finance.
Since jumbo loans near good credit can run 7% in this environment, I'd envisage you could easily get to 9-10% if you could even find someone ready to finance you.
good luck!
ps - you'd be much better rotten cleaning up your credit and saving money for a downpayment.
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Answers:
I'm not sure where on earth you're coming from with this.
You're basically asking a lender to believe that (1) you will magically find a road to pay back 100% of the cost of the exotic home, with interest, (2) you're a safe bet when you won't risk a dime of your own money on the purchase, and (3) that the bazaar will suddenly reverse to the point you'll flip a house if you need to to repay the loan.
Maybe you think it's still March 2008. You will never find a lender prepared to accept this risk without collateral. Or to put it another way: You will never find a lender to finance you 100% in need security regardless of you credit score. You will never find a lender to nouns you part way near a crappy credit score. IF you find 20% down, you MAY find a financier to put up the rest WITH a significantly higher credit evaluation; but plan on a pathetically high rate.
The days of getting into a home simply because you "want" to are long, long gone.
Sorry - no bank is going to touch this one. Why do you believe they are in so much trouble? They lent money to people next to no money down and bad credit, so the first bump in the road and the homepurchaser go into default.
Also, refinancing will cost you thousands of dollars, and there is no guarantee you will know how to do this if the value of your home doesn't go up.
Do yourself a favor - if you own some spare cash, pay sour whatever is causing your credit ranking to be so bad, save up a downpayment equal to at lowest possible 5% of the purchase price of the house, then go shopping.
This site has some great, bad credit loan option. Found it useful.
http://badcredithomeloans4u.blogspot.com/
creditreport.undonet.com - try this service to boost you credit evaluation before getting loan. After credit repair you can get the loan near minimal interest rate.
Unless you qualify for a VA loan it wouldn't matter if your credit scores be 825 - no one has 100% financiing anymore. Even the FHA back loans require 3.5%
So the first part of your first question is no, it's unworkable. The second part of your first question have the same answer. It's not possible to return with a mortgage today with a credit score of 525. A credit chalk up of 525 means you make a need of not paying what you owe. Why would someone make a very voluminous loan to someone who is in the habit of not paying what they owe? Guess what? They don't do that.
Refinancing isn't undemanding and it isn't cheap. You essentially pay closing costs all over again. Some states consent to lenders put pre-payment penalties in so that the lender make a lot of money when you go to re-finance.
Since jumbo loans near good credit can run 7% in this environment, I'd envisage you could easily get to 9-10% if you could even find someone ready to finance you.
good luck!
ps - you'd be much better rotten cleaning up your credit and saving money for a downpayment.
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