am looking for a lender to finance a house and lot located in CARSON California 90745 .First time homebuyer and have a VA loan eligibility.No dp

Asked by Looking4lender, 90745 Sat May 7, 2011

FICO score is just around 500 plus.No big debt,just credit card (500) .No bankruptcy,bad debts etc.Have a regular job thats bringing in $1500 a month.Plan of turning this house into a healthcare business.So monthly amort. is no problem.Have ready clients waiting .Only problem is the down payment.Should be 3 or more bedrooms.

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Daniel Choi, Agent, Los Angeles, CA
Wed Sep 21, 2011

You mentioned about running a healthcare business. I was wondering if you have looked into the zoning where the property is located. Each city has different criteria and requirements when allowing certain types of businesses to operate. I would make sure you first contact your city building manager to learn about the feasibility of opening at the location.

Of course, I am speaking from the real estate standpoint. Whether VA will alllow to use your home as business is a different subject that you need to also consider from the outset.

Good Luck !

Daniel Choi
Nextage Capital Advisors
1 vote
Caney Arnold, , Harbor City, CA
Mon Sep 17, 2012
You mention that you are a first time homebuyer, and I see that you have a couple of responses from mortgage brokers. If you are looking for a Realtor, please contact me and we can discuss in more detail what you're looking for in a house.

Caney Arnold, Realtor
DRE# 01916191
Real Estate EBroker, Inc.
0 votes
Dan Tabit, Agent, Issaquah, WA
Tue Sep 20, 2011
Your score will be your first obstacle, your down payment second and business plan third.
After years of loose lending the mortgage world blew up and terms got tougher. Even 6 years ago, a 500 score would have a difficult time getting a 0 down loan.
You can work on improving your credit for starters. Dispute any derogatory items, pay down your balance, get more credit with a solid pay back history will all help, but take some time.
VA does offer 0 down, but you still need decent credit, income and job time. When your scores go up, at or near 600 would be my goal, you can talk to a VA lender again.
VA also isn't a business lender; they offer loans on primary residences. If you plan to live in the home, you might be able to work out of it, but it wouldn't boost your chances by bringing this up to the Loan Officer. Your loan will be based on your current income from your present job. Bluesky or future potential income will not help and likely hurt until it's an established reality. Self employed borrowers typically need 2 years of income for lenders to consider it.
I'm not trying to be a downer; I love entrepreneurs and wish you the best. Hopefully you can get your credit score heading up and be able to proceed in a few months.
0 votes
Elva Wormley, Mortgage Broker Or Lender, San Jose, CA
Sat May 7, 2011
Hi there,

I don't believe your situtation will work for a VA loan. In particular, the plan to turn the house into a health care busines.

Best regards,

Elva Wormley
Cobalt Financial Corporation
0 votes
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