Financing in Temple Hills>Question Details

Ashley, Home Buyer in 20748

Is it easier to buy a foreclosed home with not-so-perfect credit, and how long does it typically take to get pre-approved?

Asked by Ashley, 20748 Wed Dec 23, 2009

Are there any programs out there to help people with not-so-perfect credit get financing?

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Buying a foreclosed property doesn't have to be hard at all. I work with lenders who can pre-approve you quickly and get the financing you need. Everyones' credit issues aren't the same, so it is on a case by case basis that decisions are made. I have several foreclosed homes (in move-in condition) in 20748 and Lenders who can make it happen. Contact me to get the ball rolling.

Della Tilley
Sawyer Real Estate LLC
301-449-9700 ext 29 or dellatilley@yahoo.com
0 votes Thank Flag Link Wed May 19, 2010
There are programs out there for the not-so-perfect credit borrower!

If your situation is solid, I can pre qual you in no time at all, if there are some complications we will have to work together to see if it works.

Foreclosed homes are not any easier than the others, certain properties aren't going to qualify for the lower FICO score programs such as FHA.

If you have any more questions or would like to get pre qualified I am local here in Scottsdale!

Thanks,

Ryan Riedy
Private Mortgage Banker
Peoples Home Equity
rriedy@peopleshomeequity.com
602.796.8985
0 votes Thank Flag Link Thu Dec 24, 2009
Easier than what? Very rarely a seller looks at ur credit. It is ur lender who will scrutinize it.
Pre-approval can take as short as 15mins. Please do a favor 2 urself and ur lender by having the docs. ur lender asks from u.

That much said, it is more difficult to buy a foreclosed home than a regular sale , because a few unexpected things can come up more so with bank sales than normal sales.

Make sure u build ur team of expert helpers first which include a good buyer agent and an expert and responsive lender.
rgds,
Ramesh Chandra
703 635 8209
mepcigroup@gmail.com
0 votes Thank Flag Link Thu Dec 24, 2009
Bob is absolutely right. FHA program is designed, partially, for applicants with not so perfect credit. Getting preapproved is fairly easy if you qualify. As others have mentioned, a good LO will tell you what needs to be done in order to qualify. Waiting for your score to be perfect does not make too much sense given the 8k tax credit (I am assuming that you're a 1st time homebuyer) and the very low interest rates especially on FHA loans. You might wait for 6 months to get your score from 600 to 660 and your interest rate might not decrease at all. If however, you're not ready to buy for personal, emotional, or financial reasons (aside from a credit score), that's a different story. :)

The bigger question should be the condition of the property. FHA guidelines are a bit more strict and not all bank owned homes qualify. Your agent should be able to assess the condition and give you some feedback. As well as your lender of course. Then there is always 203k and 203k Streamline loans that come into play.

I work with FHA buyers on regular basis and have assisted them in purchasing bank owned properties with a lot of success.

I would suggest you give Bob a call. I do not know him but he always posts thoughtful comments here on Trulia. I am sure he will do a good job.

Happy Holidays,
Vladimir
0 votes Thank Flag Link Thu Dec 24, 2009
Yes, FHA is a program for not-so-perfect credit. There currently are no minimum credit score requirements on FHA loans, however, lenders do have credit overlays. I have seen minimum credit score requirements from 580-640. Some lenders claim lower, but I don't see them getting done in today's environment.

The process takes about 1-2 hours.

It is not easier to buy a foreclosed property. Some of these REOs require approval for financing from their company; and their lending division may have more restrictive guidelines than others. If you do put in a contract on a FC and it requires their approval, make sure the LO does not release your private information to anyone without your consent.

Good luck.
0 votes Thank Flag Link Wed Dec 23, 2009
Ashley:
Are you looking to buy in Charles or PG County? I have a loan officer that has a computer program that shows you what you need to do to increase your credit score to FHA or Rural Development scores - if you are a first time home buyer in Charles, and buy a vacant foreclosed property there is a program that gifts you up to $39,900 that if you live in the house for 10 years, is forgiven - no pay back.Call me for a list of elgible properties and I will set you up with my mortgage officer.
There is a similar plan in PG, but not as good as sthe Charles Plan.
Bill wootan "The Real Estate Man" 301-893-6207 (Office) 240-416-0283 (Cell)
Web Reference: http://www.billwootan.com
0 votes Thank Flag Link Wed Dec 23, 2009
It is not easier than a regular purcase.

A preapproval shouldn't take very long, but might not happen too quickly if your situation is complicated.

There are lots of options out there for low credit-most lenders will give you an FHA loan if your credit score is 620 or higher-but if your credit is bad because you have open collections and judgements, they will have to get paid off before closing.

Try to find an FHA approved lender in your area who will be able to assist you.

You can also ask Realtors in your area for state or local programs who would assist with lower credit scores.

In NJ we have a state program that allows credit scores in the 500's.

I hope this was helpful.

Good luck.
0 votes Thank Flag Link Wed Dec 23, 2009
Work on getting your not so perfect credit to almost perfect first--visit with any qualified loan officer(s) and see exactly what your budget can handle and check your credit score--he/she will have suggestion as to what can be done to improve your credit--Unfortunately, no it's not easier to buy a foreclosure with less than perfect credit--Again, do all you can to improve your credit first, and then take it from there.
0 votes Thank Flag Link Wed Dec 23, 2009
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