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Mortgage with Fair Credit Score

We are trying to purchase a vacation home. Our primary home is paid for clear. Our credit is not perfect and we have been working on it to get it cleared up. Is there a way we can get a home equity loan for pay for the vacation home or do you have to have a standard mortgage. Also, are there lenders out there that will loan with fair credit? 
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November 23 2013 - Raleigh
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Answers (7)

Its hard to give a clear answer with the limited information.  If you would like to hear about your options and get a more definitive answer feel free to message me with more information I can give you a much better picture on what is available for you.  Good Luck!
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February 06
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December 05 2013
You could get a home equity loan. Your interest rate would in all likelyhood be lower than a traditional mortgage. However, many HELOCs are interest only, and most are adjustable (ARMs). This means you could potentially end up paying more for the HELOC than a traditional mortgage. Given your lower score in addition to the fact that you probably don't have 10%+ to put down on the second, I would do a cash out on your primary residence and pay cash for the vacation home. You will be able to get a great fixed rate, tax write off (I know you miss that if your home is free and clear), and plenty of other benefits. Let me know if I can help, I am licensed in NC.
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November 25 2013
It would probably be easier and safer to get a new mortgage then to take out equity on your current home. Do you know your exact credit scores? There are lenders like myself that can be flexible when it comes to credit score. Either way, I suggest you speak with a lender like myself who would be glad to speak with you to help you get the loan that you need. If you have any further questions or if you would like a loan, feel free to contact me.

Good Luck!
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November 25 2013
I would go with a mortgage.... don't touch all the equity... your lucky to have it. Area matters so I would talk to the back or lender and see what there options are. I know that FHA, it has to be primary residence, conventional on the other hand does not and the score for that usually runs about 660. If you do anything I would use some equity for a down payment with conventional. Sometimes if you have the 20% down they do not judge on credit score as bad...:) I hope this helps and good luck! 
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November 23 2013
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The bank mortgage lender said the combinTion score is 620
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November 23 2013
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Do you have numbers you are willing to share for your FICO scores?

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November 23 2013
 
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