If your girlfriend's scores are that high, you just need to let her apply for the loan, ~assuming her income is high enough to get the amount you want. (Maybe you could scale back your dreams, and buy a smaller house this year, then get a bigger one later on.) You may not be able to put your name on it, unless you find a lender who will make a loan with a score below 600. (There are a few.)
Part of your problem is that (you said) you have no credit card debt. You need to fill the car up with gas on a credit card (NOT debit) each time, and then pay the balance down each month on time. Leave a small balance on the account, but be sure it is below 30% of the credit limit on the card. This will raise your scores. Make sure your bank is reporting your payments to all 3 credit bureaus.
You really should buy an existing house, as it will be much easier to get financed. Think about making your second home a new one. (You could keep the first one as rental property.) ~Meanwhile, get with a Realtor in Lexington and get some good advice. You are wasting time on here...
Good luck to you both!
I'm not sure we all understand your question. First of all, please specify the location of your real estate interest. Your return says "Lexington, KY", but you are posting this question in Fort Worth, 76179.
Tell me what you mean by a "major construction loan"...? Are you referring to building a house, or commercial developement, or what??
This would be easier if we were communicating directly by email, or phone. Please contact me, and I will try to help you. If you want to buy a house, I can get you a loan approved. But if you are talking about starting construction on some other type of project, the banks will probably not touch it. Let me know what it is you are trying to do, and I'll see if I can help you.
ULTRA Real Estate Services
Keller Williams Realty
It would be helpful to have a reasonable down payment. Minimal (such as 3-1/2%) won't work. It also depends on what the nature of the derogatories are. If you have housing-related derogatory comments, it is unlikely anyone will help, except a hard-money lender.
"The past" is pretty vague. If you had a foreclosure less than 4 years ago, forget it. If you had a bankruptcy discharged less than 5 years ago, forget it. If the problems are from lates or collection (not from housing), then there is likely someone who will help, provided you have down payment of more than 5% of value, preferably 10% or more.
You posted this in 76179 (Saginaw, TX). I hope you posted it in the correct geographic area, because the market also plays a role in eligibility.
Truly, you should have taken the last couple of years to repair your credit, but perhaps you can hang on long enough to do so now. (Repair does not mean disputing correctly recorded derogatory comments, but rather getting new credit and managing it properly, while paying off old problems.)
If you did not do anything to re-establish credit, then your previous issues will remain as the only source of scoring: "if you have no credit but old, bad credit, then you'll have bad credit."
Hope this helps.
REALTORÂ® & Mortgage Broker
Austin Real Estate Pros | 360 Lending Group
office: 512.669.5599 mobile: 512.633.4157
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