My mother would like to buy a house but she does not have any credit. Will she be able to qualify for a loan of $50,000.?

Asked by cwilson2280, Mansfield, TX Fri Dec 28, 2012

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Miekeba Jones, Agent, Silver Spring, MD
Tue Jan 15, 2013
Hi Cwilson2280! Maybe a private lender or mortgage broker. Most banks ask for some credit. Perhaps her lender will help her establish credit.
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John Teixeira, Agent, Mansfield, TX
Tue Jan 15, 2013
Actually, I have a lender that will do exactly this, and has done it just recently for one of my clients. No credit, $50k. If you call me, I will gladly give you his information so that you can discuss your mom's situation with hime. John Teixeira 817-637-4658
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Sonja Tani, Agent, SNELLVILLE, GA
Sat Dec 29, 2012
Hi cwilson,
As I see it, there are two problems here. First, as other answers have indicated, "no credit" is not looked upon favorably by Conventional Lenders. They feel they are dealing with an "unknown" quantity. The second problem is the amount of the loan. Most Banks and Mortgage Lenders do not want to deal with loans that small. As I understand it, $50,000 is the very least they will even consider.

There may be Private Lenders that are Licensed in Texas who can help her. They well usually lend for 10 to 12 years. Their down payment will probably run 20% to 30% and their interest rates will be higher than Conventonal Financing.

The other option would be "Hard Money Lenders". These are lenders that are usually used by investors but in this case, they may be what you mother could take advantage of. Their terms are pretty much the same, except they lend for shorter periods of time. Many will only lend for 12 to 18 months but some will go up to 3 years. Those are the ones that you need to find.

In 2 to 3 years, your mother can establish her credit and qualify for a much less expensive Conventional Mortgage. One such company that I have dealt with and had good results isThe Westmoore Group. The will finance up to 3 years and do not include any kind of pre-payment penalty clause in their contracts Unfortunately, they are licensed only in Georgia and not in Texas for longer term Home Mortgage Loans but deal Nation wide in Hard Money. But due to the fact that they will lend up to 3 years, they may be of help for your mother. Here's their contact information if you would like to speak with them to see if there is any way they can help you.

The Westmoore Group, LLC
Ph: (646) 801-6190
Fx: (646) 619-4291
The Westmoore Group, LLC is a licensed lender in the State of Georgia and operates under the license #30544.

Best of luck in getting her financed and into a new home.
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Phil Amodeo, Agent, Grand Prairie, TX
Sat Dec 29, 2012
No credit is usually more of a problem than bad credit, however, it is possible to establish credit quickly in many cases. Some lenders will allow the use of "alternative" credit, such as cell phone bills, etc. in the qualifying process.

For more information and suggestions, give me a call (817-807-8574) to discuss her situation.
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Tina Lam, Agent, San Jose, CA
Fri Dec 28, 2012
Without credit, she won't be able to get a conventional loan. She may be able to get a private loan for up to 40% of the purchase price at 10-14% interest if she's really motivated.
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