The lenders in this pool are few and far between...
Read the fine print on the costs involved.
Equity position in the property will be a large factor...
Have you considered "Hard Money"?
Wow, 570 is a tough one on the open traditional mortgage market.
I would suggest talking to a couple of different lenders, especially mortgage brokers, who will be able to explore some "out of the box" options to look at. It's not going to be easy and you're going to have to put in the work it takes to do your homework and gather the information that you need to find something.
You will also need to be VERY candid about why this happened and what you've been doing since to rectify it. I know it seems intrusive, but that's just how it works.
Well that depends on why the score is currently at 570.
Like Chris mentioned, there may be an option to use a Rapid-Rescore to get his score up very quickly. That would work if there are some specific items on his credit that could be verified and updated. For instance, if he is just carrying too much debt then it is possible to strategically pay down balances and get the score updated in a matter of a week or so. I have had scores increase more than 100 points using this within the last few months.
BUT, it all depends on what he has on his credit. If he has multiple collections and missed payments he is in a much tougher situation.
Oh, and by the way. As a wholesale mortgage broker I work with FHA lenders that will allow the score to be as low as 600.
Best of luck,
I am still trying to get my loan officer Lisa on here, but give her a call 612-990-2271 or just contact me directly and we can talk more about advice!
Basically, I have yet to find a lender who will do FHA under 640. Besides that; people with low scores tend to not have the basic 3 credit requirements. THE GOOD NEWS is that it really does not take as long as you think to get up to 640. My LO Lisa is working with someone that has ZERO CREDIT and her company will finance them in 6 months (most lenders tell you a year).
She uses a software called rapid-rescore, which analyzes your credit report and will tell you exactly what to do to raise the scores. What I like the most is it also will tell you how many points you can expect to go up. Lisa has credit repair people for much worse situations.
It may not be what your ex wants to hear, but if they want to buy this needs to get done. The sooner you contact Lisa the faster we can get him qualified. I love working Zip 55119 so I think it will work out great!
Just tell Lisa Chris Block sent you:)
Realtor North/NE Suburbs