My husband and I are wanting to buy a home FHA, he has bad credit. I need a lender who will work with us as my credit score 686.

Asked by Ao1099, Houston, TX Tue Nov 15, 2011

We live in Houston, and we are having a hard time finding a lender that will work with us because they are all counting his debt toward me, therefore not being able to approve me for a $120k home b/c I am getting all the debt put on me without being able to use his income. Please Help!

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19
Mansour Baban, Agent, Houston, TX
Tue Nov 15, 2011
Hi there. It can be a little complicated if he accrued debt or his current credit situation after you two were married. I have a really good lender who will be able to answer all your questions before you make a big move. You credit score would seem to be fine from my experiece with FHA loans but you should alaways speak to a financial lender that deals specifically with FHA loans. If you would like I would be happy to get you to someone who can set your mind at ease and answer all your concerns.

Mansour Baban
832-630-3363
1 vote
Elisabeth Al…, , Houston, TX
Fri Nov 25, 2011
You can always do a lease / purchase or Owner financing might help as well. Give me a call and we can talk about it. 281-795-4611
0 votes
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Thu Nov 17, 2011
Think, then act. Just because you can do something doesn’t mean it is in your best interest to do so. If your hubby’s credit problems mess up his income down the road can you make the payments without his income? The reason lenders won’t count his income is because he doesn’t meet the minimum threshold, the same reason you shouldn’t depend on it, because it is at risk. The mortgage underwriting guidelines protect you more than they do the lender. A lender can withstand the loss from a foreclosure, can you?

Not saying you shouldn’t buy a home, just saying look inward at what behavior is causing the problem, it isn’t the lender. Hope this keeps you from being harmed.

Info on Lease Option or Rent to Own:
http://www.trulia.com/blog/jimsimms/2011/11/rent_option_or_r…
http://www.trulia.com/blog/jimsimms/2011/11/rent_to_own_continued

Criminal Credit Repair:
http://www.trulia.com/blog/jimsimms/2011/10/credit_repair_ca…

Down Payment Assistance in KY:
http://www.trulia.com/blog/jimsimms/2011/03/down_payment_ass…
0 votes
Tommy Burris, Mortgage Broker Or Lender, Baton Rouge, LA
Thu Nov 17, 2011
Bill,

We did a ton of refis in Houston after the hurricane.... When all of Houston was CRA Eligible due to disaster relief.
A lot of people got into some fantastic loan programs with crazy low fixed rates and no MI.

I haven't thought about those programs in a while.

As a Banker I don't offer those in house. I need to look at my broker desk and see what is still out there.

Regards
Tom


Tom Burris
Mortgage Banker
DallasLoanGuy.com
(214) 763-4629 cell/text/nights/weekends(Really!!)
tomburris@dallasloanguy.com
Lending all across the entire Great State of Texas!!
0 votes
Joe Edwards, Agent, Houston, TX
Thu Nov 17, 2011
0 votes
Joe Edwards, Agent, Houston, TX
Thu Nov 17, 2011
we can raise his score--go to Texas Home Lending Services at http://www.grantprograms.net--A+ rating with BBB--call me Joe-713-857-4005
0 votes
Bill Merritt, , Dallas, TX
Wed Nov 16, 2011
Yes, Low-to-Moderate census tract areas can have properties in that price range. There are a lot of condos in the downtown area of Dallas, as well as Fort Worth, in the $350,000+ price range. Since these properties are in L to M areas, there is 100% financing up to $417,000. Sometimes getting the project approved can be a little tricky, but it can be done. If it's a SFR, it's not an issue. The more people that move into these areas, the sooner that will change, but until it does, we can make loans on those properties. You have my phone number, give me a call sometimes if you like and we can discuss it further. Have a good holiday season.
0 votes
Tommy Burris, Mortgage Broker Or Lender, Baton Rouge, LA
Wed Nov 16, 2011
Low to moderate income to $417,000?
0 votes
Bill Merritt, , Dallas, TX
Wed Nov 16, 2011
Tom,

Yes we do have that product. If the property is in a Low-to-Mod income area, there is no income limit and we can go up to $417,000. It's a product that a lot of Realtors don't even know about, unfortunately, but it can really be a big benefit to the borrower, who, after all, is the person we are in the business to try and help, right?
FHA is a great product for a lot of buyers, but in a lot of instances, the CRA loan is a better option for them. If their credit score is below 680, we can do it with 3% down with a credit score as low as 620. There is no difference in the rate, and they still have no PMI.

And we still have a Physician/Dentist loan with no down payment/no PMI up to $650,000. A lot of lenders have gone to at least a 5% down payment. We will do 5% down up to $750,000.
0 votes
Tommy Burris, Mortgage Broker Or Lender, Baton Rouge, LA
Wed Nov 16, 2011
Oh... Cool Bill...

We still do those CRA loans?

Great for Ao and your bank.....
0 votes
Bill Merritt, , Dallas, TX
Wed Nov 16, 2011
If your mid-score is 686, your income is no more than 80% of median income for the area you are looking in, and you can qualify just on your income/debts, you would qualify for a 100% loan on our CRA program. Your husband's credit and debts just in his name are not part of the equation. If you would like to discuss your situation further, give me a call at 214-600-9615. I am a loan officer with Regions Bank. There is no mortgage insurance as well. Even though the rate is higher, the monthly payment would be less than on an FHA loan WITH mortgage insurance.
0 votes
Bill Rapp, Mortgage Broker Or Lender, Houston, TX
Tue Nov 15, 2011
Hello,

I finance down to 580 on FHA, if we can qualify on your income loan great, but if not his score might just make the credit cutoff.

Online application:

http://www.sutherlandmortgage.com/LO/william_rapp.htm?loid=1534

Necessary docs:

1. Drivers license and SSN card - all
2. 2 pay stubs - all
3. 2010 and 2009 Tax Returns, also the W2 forms – all
4. 2 Months Current checking, savings, stock, and retirement account statements (all pages.) – all
5. Name and phone number of your apartment complex to verify rent
0 votes
Vanessa Mart…, Agent, Pearland, TX
Tue Nov 15, 2011
HI--

I have a really great, reputable credit repair company that I use with all my credit challenged clients. I can send you their information if you are interested. Email me, and we will get started. Talk to you soon...

Vanessa Castillo, Realtor, TAHS
Web Reference:  http://www.har.com/vcastillo
0 votes
full of fun, Renter, Houston, TX
Tue Nov 15, 2011
Here are two other wonderful loan officers that maybe able to help you. If you get qualified, please give me a call and I can certainly find you the right home in the Houston area.
Leonard Kampf (713) 385-0760
David Richards (713) 213-3900
0 votes
Great Colora…, Agent, Colorado Springs, CO
Tue Nov 15, 2011
Here is an awesome loan officer who can help you out:

Gabriel Cardenas
Envoy Mortgage
(713) 385-4628

He has helped some of my toughest credit challenged clients. Let him know that Andrew Referred you. He'll work extra hard to get you a good mortgage plan.
Web Reference:  http://fortunehomesales.com
0 votes
Tommy Burris, Mortgage Broker Or Lender, Baton Rouge, LA
Tue Nov 15, 2011
Ao

EVERY lender will require his debts to be counted against you on an FHA loan. Regardless of whether your name is on the debt or not. These are FHA rules.... not bank rules.

Since you have indicated that you do not qualify on your income alone.... Let's talk about his credit.
How bad is 'bad'?!?!?!

Maybe he isn't very far away on his credit scores and we can do something about that?!?!?!

http://dallasloanguy.com/wp-content/uploads/2011/11/about_cr…

Read the free e-book at the above link and give me a call.
We should work on getting his credit scores up to minimum standards.
And don't worry about collections.... they do not have to be paid in most cases. They just affect the score.

Tom Burris
Mortgage Banker
DallasLoanGuy.com
(214) 763-4629 cell/text/nights/weekends(Really!!)
tomburris@dallasloanguy.com
Lending all across the entire Great State of Texas!!
0 votes
Alfonso Paro…, Agent, Houston, TX
Tue Nov 15, 2011
Hello Dear,

You might be able to go conventional with 1.5% more down payment if other factors are in place. I will be happy to put you in contact with a lender.

Regards

ALFONSO PARODI
REALTOR® ABR, SFR, HUD Registered
REALTY ASSOCIATES "Hablo Español"
Cell: 713.530.2455
Office: 713.464.5656 Fax: 281.401.9667
Email: alfonso@alfonsoparodi.com
Web: http://www.alfonsoparodi.com
0 votes
Dallas Texas, Agent, Dallas, TN
Tue Nov 15, 2011
If you are NOT on his debt of whatever it happens to be need to request those creditors REMOVE your name.

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes
Kathryn Durno, , Stuart, FL
Tue Nov 15, 2011
Have you tried Wells Fargo Home Mortgage? Technically an FHA loan is not credit score driven, rather holistic lending looking at your whole file - income, assets, length of time on your jobs etc. If they are debts you took out as husband and wife, unfortunately they will be counted against you.
0 votes
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