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Finding Lending

I have poor credit mostly due to a previous relationship and subsequent divorce gone back.  I've been trying to rebuild for awhile but it's slow going and starting from a significant hole.  My finance and I are currently renting (in an overprice rental) and found a house we love.  The problem is she has excellent credit and low income (25-30k/year), I on the other end have high income (around 100k/year) and poor credit.  So it's frustrating we can afford it but from everything I've read everything would be based on the lowest credit score.  Is there any options for us? 
  • December 29 2013 - Orlando
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Answers (7)

We need to look at what is on your credit and how low your score is. I need a 580 middle score to help you with a 3.5% down loan through FHA. If you are somewhat close to 580, then we should be able to repair credit in 30+ days depending on what all is on there. Definitely going to be a bit of a process, but you have to start somewhere.
  • January 06 2014
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Hello

It depends on how low your scores are and what can be done to improve them and how quickly.
There are times when we can get a significant bump on credit scores by taking some minor actions such as paying off a credit card or paying off a collection item
 
for FHA we need a minmum of 600 and evidence of monthly rent payement for the last 12 months
for Conventional we need 620

pls contact me to review your file and see what we can do to get you in to the house you love

Thanks

Tom Bawany
REMN, Inc
NMLS # 519971  
  • December 30 2013
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Let me help you by taking a look at your situation. Sometimes your situation is not as bad as you think. Let's chat.
  • December 30 2013
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It depends on what the lowest score is. Is your credit score at least 580? We offer FHA loans down to a 580 FICO score (and, can even go lower than 580 if approved as an exception). It seems like you and your wife have the income to qualify. If the reasons for bad credit can be documented (divorce decree), and as long as you can document assets and your current rental payment history, you could go FHA. Feel free to contact me if you have any questions.
  • December 30 2013
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Profile picture for cassandraevers
Ask realtors in the area who they refer people with bruised credit to-someone local that takes the time to go over your credit report with you and helps advise with items needing repair AND helps advise how to repair-
This is what we do and believe me-every realtor in the county knows we do this. Don't just walk into a bank or something, please. Find the lender who does this and let them pull your credit ONCE-and be sure they pull from all 3 bureaus. Sit down with them and listen to their advice-it could be only a few months!
They may suggest your GF add your name to her cards as an authorized user (so you can tap into her credit)!
DON'T go to a credit repair place-they charge you for things you can do and usually your score will nosedive! Good luck!
  • December 30 2013
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RD,

Michael Clutts is 100% correct.
1. What you see as your credit score on a credit report that you order is not the same as what a lender will see. Even what a "retail" credit report is different than what a lender will see and utilize.

2. Choosing the right lender can make all the difference. 

And even if your credit is poor today, there is a chance with the right lender or advisor you could do wonders to your score in less than a year, and sometimes in less than 3 or 4 months.
You might miss out on that one perfect property today, but "It Is NEVER To Late" to begin repairing your credit.

My suggestion to you is to speak to a few lenders and discuss what they know and how they might be able to assist someone with a low score. I would even suggest leaning towards an experienced mortgage broker instead of an institutional lender. The good mortgage brokers think outside the box..
DO NOT contact a credit repair company or a Bill Consolidation company.

Another tip, would be that you can discuss your credit history..... in theory with a mortgage broker and they can offer suggestions based on what info you give them. A Bank of America or another institutional lender will require you to run your credit before they say they can't help you.... Usually in not so few words.
Do not get me wrong, someone will need to run your credit, but INTERVIEW a Mortgage Broker, ask them for SPECIFIC examples of how they have helped people in the past.

I usually lean towards someone local, but in reality with lenders and mortgage brokers it comes down to who you feel you can trust!

Best of luck, and I hope it works out for you! 

My best success story was raising a clients score 90 points in less than 60 days, when I used to be a mortgage broker. By all legal means.... you just have to know what you are doing...
But I no longer work as a mortgage broker, yet I still "advise" my real estate clients.... 

Think Positive.... after all 2014 is a New Year for New Beginnings!
  • December 29 2013
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There are a couple of options for you two.  

Your credit may not be as bad as you think. Finding a mortgage pro in your area can be beneficial so he/she can determine exactly what needs to happen to get you where you need to be. Depending on your location, I may be able to refer you to someone.

If you would like for me to run some other scenarios for you please get in touch with me through my profile.
  • December 29 2013
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