Who will do a 203k with a 602 credit score with 30k in cash?

Asked by David, Brooklyn, NY Mon Mar 25, 2013

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David, Home Buyer, Brooklyn, NY
Tue Mar 26, 2013
I just sold an interest i had weekend property i sold upstate. Looking to buy a multifamily in BedStuy or Bushwick that needs renovation. I have 30k in cash and 20k can be gifted in. I am a construction supervisor with over 30 yrs experience in highend residetial, currently overseeing a 7 story gutt renovation in Soho section of Manhattan NYC. I have access to excellent design team and subs.
1 vote
David, I have just become interested in potentially doing something in Bushwick. I would love to learn more about the market and see what investment opportunities are out there. Let know if you would like to chat. -Bernard (santacruz2k5 [at] gmail [dot] com)
Flag Thu Mar 28, 2013
Christine To…, Agent, NY, NY
Tue Mar 26, 2013
Hi David, with a 602 credit score you may have a hard time finding a bank to give you a loan and they will also charge you a very high interest rate which can cost you a lot of money over time. My suggestion would be to consult a credit repair company. They know how to get your credit score up quickly (some things they can do in 4 - 6 weeks, others take more like 6 months). One credit repair company that I have had buyers use in the past is http://www.solomonalgazi.com/index.php. His tips were successful in increasing my buyer's credit score so that she could qualify for a loan and receive a better interest rate on that loan. A great mortgage banker in Brooklyn for 203K & FHA loans is Leonard Murphy from Wells Fargo. His number is 718.780.9110 and email is leonard.murphy@wellsfargo.com. Good luck!
1 vote
Sam Gold, Agent, Brooklyn, NY
Tue Mar 10, 2015
Try to repair your credit score. There is a great website http://www.creditkarma.com where you can check you credit score and see what is going on with your credit.
0 votes
Joseph Roraff, Agent, Onalaska, WI
Mon Apr 8, 2013
You can always try to get your credit score higher with credit repair. Lenders usually look at income as well as credit score...
0 votes
, ,
Mon Apr 8, 2013
Good morning David,

We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.

It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website. http://www.consumer-action.org

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams.

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services

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0 votes
jameswwheelo…, , Houston, TX
Sat Apr 6, 2013

Is the 602 your mid score or top score. If your mid score is less than 600 it will be impossible to find anyone who will do a 203k loan for you. However, if your income will allow for you to have low debt to income ratios, you can show 6 months of reserves for all of your household debts, you can put a 10 percent down payment up, have not had any late payments in the last 12 months, can provide 24 months of cancelled rent checks from your bank account, and your mid score is greater than 600 then someone at Wells Fargo such as myself should be able to get an NDS exception thereby providing you the loan you seek.

If you are missing any of those items then I don't think you will be able to get a 203k loan anywhere until you have a 640 credit score.
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