Financing in Tacoma>Question Details

Gina, Home Buyer in Spanaway, WA

Where can I get 100% financing with a low credit score?

Asked by Gina, Spanaway, WA Wed Feb 13, 2008

Does anyone know where I can get financed 100% with a low credit score? I have good income and am building my credit back from a Bankruptcy 2 years ago. I was approved a few weeks ago with a lender then was told last week that I no longer qualified for Mortgage Insurance. If nothing else does anyone know where I can get MI with a low credit score? Please help, want to buy now!

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My Company Capital Direct Lending is capable of getting 100% financing for low credit scores. We now have access to $2,000,000,000,000 (Two Trillion Dollars) The Mortgage Crisis is over. My name is Timothy Luther McNair you can reach me at 817-812-8997. After I help you, if you know anyone else that needs help, please do not hesitate to refer me. Thank you.
3 votes Thank Flag Link Sat Jun 6, 2009
Hello Mr McNair, My husband and I have been turned down by two mortgage companies here in Fresno, Ca. We have a fair down payment, steady income, but low credit scores. My husbands is at 640 and mine at 580. Because we don't use banks or credit cards. We want to buy the house we currently rent. My husband is permanently disabled with his social security benefits, I have my wages. Please let me know if you can help us. ASAP. I can be reached at 559-412-2941 or 559-554-5951 Rosemary Blanco
Flag Fri Apr 11, 2014
Hello Mr McNair, My husband and I have been turned down by two mortgage companies here in Fresno, Ca. We have a fair down payment, steady income, but low credit scores. My husbands is at 640 and mine at 580. Because we don't use banks or credit cards. We want to buy the house we currently rent. My husband is permanently disabled with his social security benefits, I have my wages. Please let me know if you can help us. ASAP. I can be reached at 559-412-2941 or 559-554-5951 Rosemary Blanco
Flag Fri Apr 11, 2014
try FHA...they only require 2.25% down or $100.00 down if you're buying a HUD Repo.
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
2 votes Thank Flag Link Thu Mar 13, 2008
Where
Flag Sun Nov 23, 2014
To the best of my understanding cuurently 100% financing is difficult to do with a low credit score. I did recieve yesterday a program from one of my lenders for Hud repossessed homes that only requires $100 down and a minimum credit score of 550. The major obstacle I could see here would be that in many cases, not always, these types of homes are in poor condition and require some work.
2 votes Thank Flag Link Thu Mar 13, 2008
Try Rhonda Porter with Mortgage Master Service Corp. I recommend her to my family, friends and clients. You can get her phone or email from http://www.rhondaporter.com.
Web Reference: http://www.rhondaporter.com
2 votes Thank Flag Link Wed Feb 13, 2008
Hi Gina,
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.
Tonya Hunstock
Better Properties
253-312-9801
1 vote Thank Flag Link Tue Jan 4, 2011
If you haven't found anyone yet, let me give you the name to Brian at Key Bank in Tacoma and tell him I sent you. There is a special financing for homes in certain areas that qualify for those with scores as low as 600 with very few qualifications. If you have had good credit for the last year and can show proof of rent, this could be for you. Brian's number is: 253-572-4509. Feel free to call me too if you would like, I'd be more than happy to assist you.
1 vote Thank Flag Link Tue Jan 4, 2011
You can always look into taking over someone's payments for them to stop their bad situation. I see alot of "canned" answers here that don't really help your problem.
1 vote Thank Flag Link Tue Oct 27, 2009
Gina - I doubt there is a lender out there who can put together a 100% loan package for you in this mortgage environment. There is some hope, however, if you can locate a seller with a strong equity position who doesn't need to be cashed out right away. If your agent can negotiate a traditional 80/20 purchase offer for you with the seller carrying the 20% on owner financing you might be able to find 80% financing. This type of offer would not require mortgage insurance. This won't be easy because the seller will be concerned about getting their payments from you and will probably want a credit report that will show the BK. You should prepare a letter of explanation with a strong personal commitment that your agent could give sellers who are considering your offer. This may be your only option right now. You'll still need a credit score over 600 to pull this off. If your below that I'd recommend you find a lease/purchase that will allow you to lock in a good price now while you work on your credit and put some time between you and the bankruptcy. Good Luck!!
1 vote Thank Flag Link Thu Feb 21, 2008
Gina,

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!

Michael
1 vote Thank Flag Link Wed Feb 13, 2008
Hello Gina,
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)
0 votes Thank Flag Link Fri Apr 19, 2013
Gina,

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
0 votes Thank Flag Link Tue Oct 27, 2009
USDA loans offer 100% financing for people with less than perfect credit. There is no mortgage insurance--there are income limits and the property must be located in a rural area. For more information, you can read this post from my nationally recognized blog.
0 votes Thank Flag Link Sat Jun 6, 2009
Hi Gina,

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!
http://www.hammeredcredit.com
Hannah Fliegel
415-999-9348
0 votes Thank Flag Link Sat Jun 6, 2009
Gina,
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".
0 votes Thank Flag Link Wed Mar 12, 2008
Gina - FHA could be your best bet for two reasons: it only requires 2 yrs since your BK was discharged (you'll want to confirm this) and only requires a 3% down payment, which can be a gift. Outside of getting a seller to carry back a 2nd loan (very little chance), these are pretty much your main options with traditional lending. Your BK won't allow you to get A-paper financing, and subprime lenders will want at least 10% down, if not 15 or 20%...

Jeff
0 votes Thank Flag Link Sun Mar 2, 2008
Hi Gina;
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.
0 votes Thank Flag Link Wed Feb 20, 2008
Gina....

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.
0 votes Thank Flag Link Wed Feb 13, 2008
Pam Winterba…, Real Estate Pro in Danville, VA
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