trying to buy granmothers house

Asked by Tdmullins8, Manassas, VA Tue Aug 28, 2012

I want to purchase my grandmothers house for 200,000. I spoke with a lender and my credit is 624 I have 10K im using as a down payment. I see there are other loan options out there other than a conventional loan but I dont want to shop around and keep having my credit run. Where should I look for a loan that can help me with my current score?

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Jim Simms’ answer
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Thu Aug 30, 2012
Be careful of credit repair companies or loan officers that send you to one, most of them tell people to dispute everything negative in their credit file including the accurate stuff that is negative. That is a crime, lying about anything in order to get a loan is fraud and depending on the location and the type of lender the penalties can be up to 30 years and several million dollars. My DE underwriters will not clear a loan to close if there are open disputes on the credit report, ever try to get a dispute removed? You have to dispute the dispute and that is going to look bad all by itself. As of 8/13/12 it becomes MANDATORY that any suspicious document given to a lender must be reported on a Suspicious Activity Report (SAR). That includes something suspicious on a credit report. The fine to the lender for not reporting something is $5,000 per document, could jump as high as a Million Dollars and/or jail time if it looks intentional. Every lender is required to have a corporate officer to review every file in case the loan officer doesn’t report something. This is a Federal mandate, not your local state government. These reports must be filed with the Feds, you do not want to be on one of these reports. So build your credit report the right way, do not try to take a short cut. I hope this info protects you from harm, see more on the link below, good luck,
0 votes
Michelle Mar…, Agent, Bethesda, MD
Thu Mar 14, 2013

I am a Realtor working with lenders in and around the Manassas area and have recently learned of some programs that require a credit score of 620 and require 0% down. Because some of Manassas is considered rural area, you may be able to qualify for a USDA loan with the above credit score. There are some income and limits as well, but feel free to Google Virginia USDA loan programs. As with all finance programs, they can be complex, so you can't rely on Google to give you the full picture. If you're still trying to purchase the home and need assistance, please feel free to contact me. I'd be happy to get you in touch with a loan officer that is familiar with all of the local area programs.

Best Regards,

Michelle Taylor
Exit Heritage Reality
15030 Washington Street
Haymarket, VA 20169

Cell 571.393.1766 (call or text)
Office 703.753.9100 ext.313
Fax 703-753-5828
0 votes
Colin Scherer, , Manassas, VA
Thu Aug 30, 2012
Hi. My name is Colin Scherer, and I am a Loan Officer here in Manassas. Give me a call when you get a chance, and I can explain some options for you. It's easy to do quick fixes to improve your credit, and I'd love to discuss them with you. 703-840-4238.
0 votes
Dottie Greco, Agent, Portsmouth, VA
Tue Aug 28, 2012
A good lender can give you some advise on a potential loan to fit. However, a credit score of 624 might be too low even with 10K to put down. I do work with a fine lender that might be able to give you some guidance on how to improve your score quickly, or provide you with some answers without running you credit again. As long as you disclose everything up front, she can give you a clear picture. Of course, the final word comes from the underwriter, so make sure you don't leave anything out.
If possible, you might consider having your grandmother provide you with seller financing as well. If she agrees to financing, you could use the 10K downpayment and she would dictate the terms of the loan. After a year or so, you may be able to refinance with a regular lender or bank and then pay her off. Not knowing the specifics of your situation makes it a little difficult to give any other information.
0 votes
Thanks. I didnt want to get into to many confusing details right away the home appraised at 250,000 so we where looking at a conventional loan. we dont really want to do the gift of equity route because it seems it will hurt my grandmother come tax time. I would like to speak to your lender instead of some internet guy that might be leading me down the wrong road
Flag Tue Aug 28, 2012
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