Also contract for deed homes can be bought with 5% rare down most will want 10% - 20% down and plan on 8% intrest
contact me if i can help you
VA financing has no score requirement, but VA lenders score requirements are similar to FHA's.
USDA financing has no score requirement - however if you go through a lender most will have 620 or 640 minimum scores, but if you go Direct to USDA they do not have any minimum score requirements, but it takes a little bit longer.
Fannie Mae & Freddie Mac require a 620 score.
Credit score isn't the only item considered though, what is on your credit report is equally as important. If there are late payments or delinquent accounts in the last 12 months when you apply then that can really curtail your chances of qualifying.
USDA financing is 100% financing in rural areas, and there are two versions, Direct & Guaranteed. Direct you go direct to USDA, Guaranteed is where you go through a mortgage lender and at the end they send it to USDA. Guaranteed allows higher income limits, but the underwriting requirements are tougher. http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do has the income & geographic eligibility limits for USDA.
Credit improvement isn't an overnight feat. Tips on how to improve your credit score: http://www.myfico.com/crediteducation/improveyourscore.aspx
Have you checked your credit to see what is bringing your scores down?
I work in Central Florida and there is only one bank that is providing financing to customers with a credit score of 500 to 579, but the conditions are strict.
Here are the conditions:
30 years fixed interest
500 to 579 credit score
10% Down payment
3% Seller concessions
No gift money
5 to 5.5% interest rate
580 to 600 credit score
5% Down payment
3% Seller concession
No gift money
600 credit score or more
3.5% interest rate
Up to 6% Seller concession
Gift money allowed
If the person has collections, bank can still lend to this person, but not if customer has any past dues or disputes.
Let me know if you have any questions as I will be more than happy to assist find the loan and the property.
HouseStar Realty Group Inc.
Real Estate Broker
Certified SFR Short Sale and Foreclosure Resource
ï€¨: 407.429.5243 | P: 407.301.3401 | F: 407.373.0064 | eFax: 407.264.6260
Not much money for a down payment? Remember, it costs money to buy a house. You need at least 3.5% down (for an FHA mortgage). You'll also want to have money for closing costs (if you can't get seller to pay them). You need money for the inspection and any tests needed. PLUS...what if something breaks the month after you move in? After you put all of your money into the house, will you have the $1500 to replace the hot water heater?
I hate seeing people barely scraping by, putting everything they have into the downpayment. Yes, lenders are willing to take all of your money, but is that best for YOU?
Work on reducing your debt, then save save save. Good luck!