question about financing - Posted by james engel

Posted by Cal on July 09, 2002 at 05:49:05:

I am surprised to hear about your situation. Your scenario would seem easiably managed by an experienced mortgage broker. Although I am not familar with the lending practices in NY, in Baltimore I have found lenders that would happily give you a loan. I have sold houses to tenants on disablility. Proof that the disability was going to be subsidized for atleast 3 yrs was necessary. Your income ratio and loan to value would seem well within the guidelines of normal lenders.
Project Purchase Price 70k
downpayment 20K
Mortgage Needed @ 50K
Approximate monthly payment 500
Gross monthly income 1800
Most lenders who lend to low credit score borrowers
require 70%LTV which you have. You might have to put up an extra 1000 dollars. (70k x .70 = $49,000 max loan amount)Also your front and back end debt ratios seem fine as long as there are no other debts including credit cards. Most lenders like you to have a front end ratio of @30 and a back end of @40. (1,800 x .30 = $540 max monthly payment. Some lenders let your ratios go even higher. I would not call banks directly. I would call Mortgage Brokers who have numerous programs and hopefully find one to fit your needs. You could have to make up to 50 calls to find a program that fits your needs. If your honest and upfront with the first couple people you talk to usually they can lead you to someone who can help if they are unable to. I would suggest getting a copy of your credit reports from equifax. This way you may give them the info they need to determine if they will be able to help you before they pull your credit report. Credit inquires have a negative impact on your credit score so do not allow everyone you talk with to pull a credit report before they have a good idea of whether they can help you. You can fax them a copy of your equifax report witch also has your score. Your tri-merge score could be lower then your equifax score but an experienced broker will be able to tell if they can help just from the equifax copy. Also not using any commercial credit is not helping your credit score. Obtain a secured credit card and start to re-establish your credit. If you have no debts and pay your credit card on time your score will rise into the mid 600’s before you know it. Equifax has some great info on why your credit score is what it is and what you can do to improve it. Well I hope that helps a little bit.

Good Luck,

question about financing - Posted by james engel

Posted by james engel on July 09, 2002 at 01:09:48:

hi all,
i stumbled on this board and would like to ask a question since this is the place to ask.
i am 34 have wife 34 both disabled on social security with monthly checks total 1800.00 we also do off books sports collectibles sales for an extra 1000-1500. our credit scores are in the low to mid 500’s. we would like to buy a house in upstate ny in the range of 65-75,000 but have gotten no luck from banks. we could put down a down payment of around 20,000. does anyone have suggestions about where we could go for financing, the problems on our credit are due to a gambling problem i had up until 2 years ago. we have payed on time rent and utilities and have no bk or car payments or loans.
if anyone has any advice on where we could go or how to find a sub-prime lender it would be appreciated. we know a little about this but not much. thank you for your time