Question Details

Wendy, Both Buyer and Seller in St. Pete. Fl.

Will I be able to take out a small loan with not good credit?

Asked by Wendy, St. Pete. Fl. Sat Mar 29, 2008

When I sell my home I am going to buy in a nearby county where home prices are 40-50% cheaper. My credit is not good as I have been late on credit card payments for the last 6 mths. Most of the cost will be cash from the equity in my home now. I will have to finance about 25,000.Will I have to pay extreme closing costs with a high interes6t rate?

Help the community by answering this question:


I would like to tell you all those things will not impact your ability to get a loan or interest rate but in fact they do and will. Yes, it is good when your loan to value is better for your new purchase but credit history is more and more important these days. Each situation is different but in most cases can be worked out.

It really depends on the lates and how late. Some companies are not reporting as quickly as they have in the past so it may not be as bad as you think. I would recommend you work with someone (like myself) that you feel comfortable with. Begin by applying and finding out what your credit score is and then go from there. If the credit score is not too bad you may be approved ( I worked on one the other day and the person had a high 400's mid score and was able to get them approved). If it does not immediately become approved we can work together and discuss a plan of attack for credit repair. In some cases this takes time in some cases it works out fairly quickly.

Also the comments the other have made are right on point. Work with someone you trust and feel has your best interest in mind.

If you need help getting on track with a credit repair program let me know.

Kind regards,

First Horizon Home Loans
11300 4th Street N Suite 150
St. Petersburg, FL 33716
Bus: (727) 576-5776 x1129#
Fax: (214) 496-2347
Cell: (727) 599-8200
0 votes Thank Flag Link Mon Jun 9, 2008
Wendy, your best option is to speak with a really good mortgage consultant, one with a CMPS designation--they should be able to guide to to where you need to be, or a financial advisor. It is still true that mortgages CAN be obtained, especially if you are financing less than 70%, but your interest rate will suck that's a technical term) if your credit scores are bad. There may be options for you to improve your score over the next few months while you transition from one place to another. Have you considered tring to open an equity line to pay down the credit cards, instead of trying to sell at or near the bottom of the market?
Food for thought--there are many options that aren;t apparent unless you speak with an advisor about your unique situation--feel free to contact me ( if you'd like an introduction to a few of the mortgage advisors I know!
0 votes Thank Flag Link Sat Mar 29, 2008
Hi Wendy,

You should start by contacting a great mtg person who can help you buy a house in St. Pete. Get pre-qualified, and then - based on what they say about your FICO and status, go from there.

Right now you are trying to get somewhere when you don't have a map ;-)

If you need a referral to a great mtg person who won't lead you astray, let me know. I don't work in St. Pete, so this contact info will be completely unbiased, which is a good thing!

Next step is to contact a great agent to look for houses in the area and price range you are qualified for, OR TO know that you should wait until something is better;. Again... don't work in St. Pete, but know lots of great agents there if you want some help there....

Good luck - IF you DO this the right way - you will be happy, do it the wrong way and you will be ultimately frustrated. It is too easy to do it the right way ;-)
0 votes Thank Flag Link Sat Mar 29, 2008
Hi Wendy. It all depends on your credit score and how bad it really is according to your credit report. Try to limit your late paysover the next few months while your home is for sale and it may improve. Get in touch with the mortgage lenders on our vendor page and they will give you an accurate summary of your options. Good luck to you!
0 votes Thank Flag Link Sat Mar 29, 2008
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