Do bank owned homes have the same mortgage qualification requirements? Are there options for those who have high income but low credit score?

Asked by Farm, Truckee, CA Tue Jul 27, 2010

I had a home forclose about two years ago. Currently, I have a credit score in the low 600s, but I have excellent income. I don't qualify for any type of loan in California, but I was wondering if bank owned properties have the same strict requirements.

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Olja Mihic’s answer
Olja Mihic, Agent, Tahoe City, CA
Mon Oct 14, 2013
Bank owned doesn't really effect the mortgage. It just means the seller is a bank. It may make it more difficult in a sense that lot of bank owned homes have things ripped out of them, and mortgages require a home to be health and safety complaint
0 votes
Scott Godzyk, Agent, Manchester, NH
Sat Oct 12, 2013
It doesnt matter who owns it, the requirement for most mortgages will be the buyer qualifies and the home meets a minimum condition. FHA is most strict, conventional loans allow some work needed. With only 2 years out of foreclosure and a low credit score, you may need 20-25% down to get a mortgage. Check with a local and trusted loan officer from a mortgage company, not a bank
0 votes
Spirit Messi…, Agent, Tucson, AZ
Wed Jul 28, 2010
They are the same, talk to a lender about getting pre-approved. It is free to do, and if you dont approve for the $ you need, a good lender will tell you what to work on so in time, you can IMPROVE your scores and get a house. Don't worry, the market is not going to "take off" any time soon, so you have time. Good luck.
0 votes
David Chiles, Other Pro, Los Angeles, CA
Wed Jul 28, 2010
Thank you for your question about the requirements for purchasing bank owned homes. Bank Owned / REO's do have the same mortgage qualification requirements. In today's market for Bank Owned / REO's the more cash you can bring to the table the more likely your offer will be accepted.

There are options for people with a low credit score and high income. Making a large down payment and getting a smaller mortgage is an option. Credit repair is another option.
0 votes
Dave Westall, Agent, Tahoe City, CA
Tue Jul 27, 2010
Bank owned properties have the same mortgage qualification requirements as standard sales and unfortunately with a credit score in the low 600's you will have a tough time qualifying for a loan. I would suggest talking with a mortgage broker about your situation and put together a game plan for how you can better your credit score to a lendable state. I would suggest talking with Andrew Koijane with O'Dette Mortgage Broup in Tahoe City 530-581-0360 or Andrew@omglenders.com as he is one of the best in the business and he will be able to help you out. If you have any questions please feel free to contact me anytime. Have a great day and I wish you luck.

--Dave

David Westall, Realtor
DRE# 01796995
Tahoe Riverfront Realty, Inc.
530-448-9882
David@WestallRealEstate.com
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