You are going to need a minimum of a 580 credit score, â€œIFâ€ you are putting 20% down. You really need a minimum of a 620 credit score. You need to talk to a lender to to consult you on how to increase your credit scores. You also have a problem with the loan amount, there new legislation that makes loans with an APR of 6.63% or higher a â€œHigh Cost Loan Productâ€, therefore many lender have increase there minimum loan amount to $75,000 because smaller loan amounts have higher APR's.
What is the price of the home? How much is your downpayment? What is your employment history? Does
the home need repairs? All of these may be further issues.
Many lenders to not lend under $25,000 and if they do the closing costsmay be substantial because of the high fixed costs.
If you have a very large down payment you could get a hard money loan but it will be very expensive.
I hope all of this has been food for thought. If you have other questions you can give me a call
"With You Every Step of the Way"
A few lenders will go as low as 580 with the last 12 months clean.
You could try a rapid re-score and do a 90 day out rent to own.
Just be patient if you lose this house another one will come along when your credit
Isabel Elsesser, Realtor
I am with Coldwell Banker Wallace and Wallace in Oak Ridge, Tn right outside of Knoxville. We are affiliated with Monarch Mortgage, Andy Munsey is wonderful and he will be able to advise and/or help you. Call him at #865-805-9482, he works 24/7 and just tell him I referred you. I dont get a kickback or anything.(LOL) I just know he has done wonders working with some others with the same problem. You can call me or email if I can help with anything else. Have a Blessed Day.
Sherry Rowland, Affiliate Broker