Could you buy a house if you have bad credit?

[conjur]

Originally posted by: DurocShark
Here at Ameriquest, a 515 score <ahem>mine</ahem> requires 25% down. Anything over 620 will only require 10%.

And what interest rate??

 

[DurocShark]

Originally posted by: conjur

Originally posted by: DurocShark
Here at Ameriquest, a 515 score <ahem>mine</ahem> requires 25% down. Anything over 620 will only require 10%.

And what interest rate??

Bwahahahahahahahahahhahaha!!!!

Like 500% with 500 discount points. heh

(I can't quote rates, and variables such as property value, location, income, credit score, etc all affect the rate)

 

[aircooled]

If you are a first time buyer, you can get an FHA loan with only 2.5% down.

 

[conjur]

Originally posted by: DurocShark

Originally posted by: conjur

Originally posted by: DurocShark
Here at Ameriquest, a 515 score <ahem>mine</ahem> requires 25% down. Anything over 620 will only require 10%.

And what interest rate??

Bwahahahahahahahahahhahaha!!!!

Like 14.5% with 4 discount points. heh

GAH!! :Q

Good thing I have about 2-3 years before I'm ready to buy/build.

 

[StageLeft]

Now that we're bragging, we bought our house in the mid 100s this year with 0% down. My credit score was around 710 at the time. Actually what am I bragging about? We put no money down, because we had none!

 

[Vic]

Originally posted by: MuffD
This is very easy to do as long as you are taking care of your issues and could possible come up with a down payment. I have had a few friends who had credit scores in the low 600's but still got a house. ONly thing is, they didn't get the good interest rates.

What? I regularly close Fannie/Freddie/FHA/VA loans to customers with low 600 scores and get them excellent rates.

I confess this attitude I see here is a big beef I have with a lot of mortgage shoppers. Your 780 score will NOT get you a better deal. Once you qualify for the best (which can happen as low as 620, but other factors do apply), it simply doesn't get any better than that. And no, I'm not going to kiss your ass. In fact, because you're probably going to want to grind me down to the point where I get a minimal (if any) commission, and because you'll never commit and will be threatening to dump me for the entire 4-6 weeks it takes to get to closing, the reality is quite the opposite. Depending on the attitude, I may be looking for some way to get rid of you and your vaunted high credit score and push the burden of you off to one my competitors. Think of it like a woman. You could have the one that just amazingly beautiful but sleeps around on you with all your enemies and plays the drama-queen game, or you could have the one that's merely just pretty but is loyal and makes you breakfast in bed every morning.
Sorry to show you guys the dark side of mortgage lending, but it's true. I'm doing more loans right now that the rates are up a little and all the "shoppers" quit calling me and wasting my time. That brings me to another beef. If you're shopping for a mortgage loan, make sure you call every lender out there in one day. Because rates usually change more from day-to-day than you'll see in differences between lenders. So if you're calling one a day, and that one outfit you called week-before-Tuesday had the lowest rate, guess what, their rate will be different when you call them back today, and no, it's not because they're trying to screw you

As for the "sub-prime" mortgage market, which usually caters to credit scores between 500 to 620... yes, their rates are somewhat high. So is the lender's risk. The sub-prime market has 4 times the average of foreclosure rate of Fannie/Freddie (but only half the rate of FHA/VA ). If they couldn't charge higher rates, their only option would be to stop lending to those people with poor credit. And federal law (HOEPA 1995) limits the maximum mortgage APR to Prime + 10% (currently 14%) and/or maximum total closing costs must be less than 8% of the gross loan amount (no single parameter of a loan can exceed those figures, for example a 1% APR loan still can't have 9 points, etc.) You don't like that, well then try to make sure you don't have a "prison credit" score of 514, for example.

Alright, rant over

 

[DurocShark]

Originally posted by: Vic

Originally posted by: MuffD
This is very easy to do as long as you are taking care of your issues and could possible come up with a down payment. I have had a few friends who had credit scores in the low 600's but still got a house. ONly thing is, they didn't get the good interest rates.

What? I regularly close Fannie/Freddie/FHA/VA loans to customers with low 600 scores and get them excellent rates.

I confess this attitude I see here is a big beef I have with a lot of mortgage shoppers. Your 780 score will NOT get you a better deal. Once you qualify for the best (which can happen as low as 620, but other factors do apply), it simply doesn't get any better than that. And no, I'm not going to kiss your ass. In fact, because you're probably going to want to grind me down to the point where I get a minimal (if any) commission, and because you'll never commit and will be threatening to dump me for the entire 4-6 weeks it takes to get to closing, the reality is quite the opposite. Depending on the attitude, I may be looking for some way to get rid of you and your vaunted high credit score and push the burden of you off to one my competitors. Think of it like a woman. You could have the one that just amazingly beautiful but sleeps around on you with all your enemies and plays the drama-queen game, or you could have the one that's merely just pretty but is loyal and makes you breakfast in bed every morning.
Sorry to show you guys the dark side of mortgage lending, but it's true. I'm doing more loans right now that the rates are up a little and all the "shoppers" quit calling me and wasting my time. That brings me to another beef. If you're shopping for a mortgage loan, make sure you call every lender out there in one day. Because rates usually change more from day-to-day than you'll see in differences between lenders. So if you're calling one a day, and that one outfit you called week-before-Tuesday had the lowest rate, guess what, their rate will be different when you call them back today, and no, it's not because they're trying to screw you

As for the "sub-prime" mortgage market, which usually caters to credit scores between 500 to 620... yes, their rates are somewhat high. So is the lender's risk. The sub-prime market has 4 times the average of foreclosure rate of Fannie/Freddie (but only half the rate of FHA/VA ). If they couldn't charge higher rates, their only option would be to stop lending to those people with poor credit. And federal law (HOEPA 1995) limits the maximum mortgage APR to Prime + 10% (currently 14%) and/or maximum total closing costs must be less than 8% of the gross loan amount (no single parameter of a loan can exceed those figures, for example a 1% APR loan still can't have 9 points, etc.) You don't like that, well then try to make sure you don't have a "prison credit" score of 514, for example.

Alright, rant over

Heh. You hit the nail on the head on all counts!