Financing in Murphy>Question Details

Dcpgold, Home Buyer in Murphy, NC

Are there private investors, etc. that would loan money for a home to people with poor credit scores with great home payment history for past 2 years?

Asked by Dcpgold, Murphy, NC Thu Jul 8, 2010

My credit scores have taken a beating due to very unfortunate situations and unfair or erroneous reports submitted against me that I have taken actions to correct for the most part. I have a good salary, very good debt to income ratio, and can prove I paid the previous home owner that was leasing with option to buy his home, $30k in 24 months with a $1000 minimum monthly payments which included $6k as a down payment that I never missed or was late on, which seems would be the main thing a lender would care about. He lost his home, evicted us after we had a closing date last October and basically took the opportunity to deceive me and kick us out due to being late on a payment when he verbally agreed to allow me to skip a payment since we had a closing date and he would not be loosing that money, and went immediately and had us evicted. All I can say is that he will get what is coming to him for that and I feel so will we. Thanks

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Hi D C,

You are looking for a private money lender. Not a hard money lender. Hard money means expensive. A private money lender is someone that for example is early 1.5% in a CD. You might be able to offer them a 5% interest rate for a first mortgage for you. I would suggest you consider an 80% LTV with a 5 year balloon.

You might also be able to get into a property with seller financing.

you might also be able to acheive home ownership through a lease option or a rent to own.

Finally, you will want to work on your credit rating because of all the benefits that good credit has to you as a consumer. Utilities are cheaper with good credit, better mortgage products for future are available with good credit. If you finance a car the interest rates will be better if you have good credit. No or low interest rates on credit cards and positive results for job screenings.

Good luck!

Hannah Fliegel, FICO Pro
The Credit Repair Expert
415-999-9348
0 votes Thank Flag Link Fri Jul 9, 2010
"I paid the previous home owner that was leasing with option to buy his home, $30k in 24 months with a $1000 minimum monthly payments which included $6k as a down payment that I never missed or was late on, which seems would be the main thing a lender would care about. "

Not to rain on your parade but that is not the only thing lenders care about. The way you manage all of your debt and obligations is how we measure the risk that we have by lending to you. In addition, any bad debts can turn into judgements which can be slapped as a lien against a property that you want us to finance for you which implicates our financial position in the home.

If you have a 600 credit score and can prove these other debts are paid or satisified then I would be happy to help you with financing.
0 votes Thank Flag Link Thu Jul 8, 2010
Hi Dc, Hard money loans are to our knowledge currently not happening. The market is forever changing which is the good news. If you have 30% to put down on a home sometimes 20% will do it depending on the banks and you have the cancelled checks from your rental for the last 2 years you may find banks willing to work with you. Banks care about income, length of employement,and of course credit however they may take explanation as you've stated above and work with you.

All the Very Best

Dave & Lisa
Web Reference: http://www.urhomerealty.net
0 votes Thank Flag Link Thu Jul 8, 2010
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