The seller can pay up to 6% of your closing costs....this is w/out the down payment assistance
they dont have a minimum credit score requirement so you can have a 400 and still get approved.
VA loans work the same way, but they dont have any monthly mortgage insurance payments like FHA
I know it can get confusing in this market and I would love to help you out! Depending on what you consider as a low credit score will determine how to proceed. I work directly with a lender whom we have closed many deals with similar scenarios. We work hard on advising and directing how to get your score up if needed and in some cases if it is too low, then we can refer you to a credit repair agency to assist in getting your score up. Usually, though it is something we can help you do yourself if indeed you need it. There are several ways to get 100% financing and the guidelines for those programs are continually changing. I would love to talk to you more about your situation and help you out with this. Feel free to call me anytime with no obligation.
That is an interersting scenario. There might be a little confusion....
Mortgage Insurance is a fee charged by a lender to cover against loss. It is charged when the amout of your loan is more than 80% of the home's value. A person doesn't qualify for mortgage insurance, it is mandated by a lender when the above scenario of loan to value applies.
Even though things are tough right now with the changes in the marketplace, FHA and VA home loans still remain the best bet for people with lower credit scores. Since you do not have to have a certain credit sore to get a certain rate, qualification is easier. Since you have been building your credit back, it will help to establish a history and that is most important to an underwriter when looking at credit worthiness.
FHA still will allow downpayment assistance, and depending on where you get the assistance, you can possibly get in with nothing down and still have a fixed rate loan that will not adjust in two or three years. As a certified insturctor for the Washington State Housing Finance Commission, I can tell you that funds are still available, but need to be asked for soon, as they go very fast.
VA still lets you go "0" down but unless you qualify to get a VA loan, that may not be an option.
It may seem a bit confusing, but you can accomplish your goal. Even in the middle of the so-called "housing crisis", loans like this are being made to buyers just like yourself everyday.
Hope that helps!
As a Real Estate Investor, I wish to take a moment to honor additional Real Estate Professionals, aka. Real Estate Brokers, throughout our Puget Sound region and across the nation. They are highly skilled men and women who exercise tremendous work ethics! I am glad to share that I enjoy the opportunities of employing these Outstanding Professionals as a portion of my Professional Team.
As a Real Estate Investor, I wish to share that I am able to negotiate a P & S agreement that is good for both the Seller and Myself, the Buyer, as well as, for the next Buyer, beyond me. As an Investor, I am able Assign Contracts, "Fix n Hold" as a Rental or, "Fix n Lease-Option" to the Buyer-Home Owner. When the Investor is able to provide Seller Financing, the Options are so encouraging.!
Gina, it would be my pleasure to assist you in you in your search for 'your home' with "Creative Financing".
Blessings, Sharon Z
(Subject Line: Home Buyer)
Another option for 100% financing with a lower credit score in Spanaway or Tacoma, is a VA loan. VA loans are a great way to purchase a home, offering low fixed rate loans and flexible underwriting guidelines. The seller can pay your closing costs and if negotiated can pay off some of your debts. For more information on VA loans in Tacoma, feel free to visit us online at http://www.VALOANSTACOMA.COM
You might want to consider credit repair. My guess is that your credit reports have all your old accounts, such as collections, etc and the bk. If you use credit repair you can get rid of all those old accounts and you should get 80-150 point recovery. This would make your credit rating more attractive and then lenders will be more likely to offer a mortgage with good interest rates. Good luck!
a lot is going to depend on why your credit score is low. Were you approved for a conventional 100% financing such as a Flex 100? Some pmi companies are now calling areas in Pierce county as "soft" and that may have zinged you as well.
FHA does sound like your best bet. And FHA is not going by "soft markets".
I have been asked that alot lately. As it has been answered to you, there are some FHA programs out there. Windermere Mortgage Services also has some attractive products that can offer you some choices as well. I work with them when I can as they are not only in house and strive to help our clients but also because they have their pulse on any new products and information that is available. You may want to ask your local Windermere agent about them.
You may want to consider a FHA loan as they will accept buyers with a lower credit score. Check with you local mortgage broker. Also, you want want to consider working on your credit and saving a bit more before purchasing as most lenders want to see a reserve in you bank account in care you fall on hard times.