Michele, Home Buyer in 49047

Is there any type of mortgage or home loan that can be applied for with a credit score of 582 with mostly medical bills?

Asked by Michele, 49047 Sat Apr 24, 2010

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Answers

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Due to all of the changes in the guidelines for conventional & FHA financing, I do not know of any lender that will give a mortgage with a credit score below 620. The gentleman mentioned the exception below but that is a "rare" case and you have to have "extenuating circumstances" that shows your had excellent credit before the situation. The loan is probably portfolio'd at a local bank and is probably on an adjustable interest rate, not favorable to most people. One person mentioned to purchase on contract which is an option but that is not getting financing through any lender. You are negotiating directly with the seller and agree to pay him for a certain number of years and then you try to get a loan through a lender at that point.
Joanna Sharp
Mortgage Consultant
MetLife Home Loans
0 votes Thank Flag Link Mon Apr 26, 2010
There is conventional financing options available for you, as one of the answers below mentioned. It's a case by case basis though.

About 9 months ago I had a buyer wanting a brand new home to purchase. She had gone through cancer treatments in the past and had huge medical bills. Because of the unique circumstances, we were able to get her conventional financing even though her credit score had been hurt by the medical bills.

And of course, if you need someone to work with you, feel free to look me up :)

Thanks!

Craig
0 votes Thank Flag Link Sun Apr 25, 2010
Contract for deed, a form of seller financing, might be an option. Ask your Realtor to identify homes where the seller would consider contract for deed. You make a down payment (so you DO need to have cash on hand), and then pay monthly as you would a traditional mortgage. You and the seller would agree on an interest rate, down payment amount, and term. There's a balloon payment at the end of the term, say, three or five years down the line. The thinking is that by then, you'll be able to get a loan from a traditional lender to pay off the c/d.
0 votes Thank Flag Link Sun Apr 25, 2010
We use an FHA lender who can get the job done easily for you. Visit us at http://www.cashrebates4homebuyers.com
0 votes Thank Flag Link Sun Apr 25, 2010
You might consider buying a property with seller financing.
0 votes Thank Flag Link Sat Apr 24, 2010
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