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Qualifying for a Home Loan/Refinance

kevin said: "Many banks out there such as BOA, Wells Fargo, World Savings offer very competitve home loans but the catch is that they deal with "A" paper. "A" paper is usually defined as having a credit score of 620-660+. So what about those who have low FICO scores? Most people with low credit scores are subjected to shopping for a lender/broker to get a decent rate these days. The mortgage industry does require customers to have a minimum score of 500 to even qualify for a loan. Those with scores lower than 500 are led to believe that no loans/programs exsist but in reality there are ways to boost credit scores above 500 in many cases. There are certain incorrections on many credit reports that can be corrected with a very insightful analysis. Feel free to comment or ask questions __________________ Kevin [email]klu@nationwidemortgage.net[/email] Nationwide Mortgage"

sassy said: "so is there no loans out there for people with a score less than 500? Our credit score middle is 465, low I know, but we are in the process of fixing that. In the mean time, we own our house, but are planning on selling and buying a different one, a house that would cost less than what we are in now. We have 20% to put down. So far we have had no luck finding a loan. Is there going to be anything out there for us?"

kevin said: "Have you checked your credit report? I may be able to make some corrections on your credit report and boost your score. With a credit score of 465, all you need is 35 more points to qualify for a loan. In some cases 490 will work as well."

TScott said: "Are you talking about 100% finance with scores below 500? I was told by a mortgage co. that we had to get up to a 530 to get an 85% financed home loan and score had to be at 580 to get 100% finance - 0 down. Also the interest rates, I was told would be around 7.5% (because of bad credit) which I am assuming is high? I am really new to this. Please let me know if there are 100% - 0 down loans for people with low scores. Thank you"

kevin said: "To Qualify for 100% Home Loans -Full Documentation requires a minimum of 580 FICO. Some companies can take the average of all 3 scores. -Stated Loan requires a minimum of 600-620, varies depending on the lender There are lenders that disregard FICO scores completely for a purchase, but they will only loan 65% of the purchase price. The best way to maintain a high score or to boost your FICO score is too keep credit card balances at 40% of the spending limit, as well as making your payments on time including paying your mortgage."

ArrowCapitalGroup said: "We qualify homeowners with FICO scores under 500. Also, for a "no doc" loan, which only requires a credit report and appraisal, we can go up to 95% LTV."

Jon@approvedhome.com said: "We offer a home loan program that has NO credit score requirement - we don't care what your credit score is. We like to see no or very limited bad credit in the last 12 months. Our typical customer has a credit score of between 520 and 560. But we've done loans for people who had credit scores below 500. We take a look at your entire credit picture, not your credit score. The loan is a 97% loan (3% down payment) with a current (as of today) 30 year fixed interest rate of 7% (APR of 7.9% - have to disclose APR per RESPA - but APR is NOT your interest rate). There is no pre-payment penalty. We are a mortgage banker, NOT a broker. This is our own in-house program. We pre-approve, underwrite, and fund in-house. I can do home loans in Texas and Colorado. I think our company can do loans in other States, but not sure. I just don't deal with loans in other States. But if you live in another State, you can email me and let me know where you are buying and I'll forward the email on to our corp. office and see if they can do the loan there. This program also allows for a Chapter 7 Bankruptcy. The bankruptcy must be discharged 12 months and no bad credit that was incurred after your bankruptcy. This is a "common sense" home loan. We base the loan decision on your recent credit (last 12 months) and the reason for the previous bad credit. We believe everyone has tough times sometimes, and we all deserve a second chance. We are also looking for loan officers in Texas and Colorado, and possibly other States. Let me know if you have any questions. Thanks! Jon Bradshaw [email]Jon@approvedhome.com[/email] [url]http://www.approvedhome.com[/url]"