Can you even get a mortgage with a low credit rating?
Post date: September 12th, 2011My husband and I had decent credit a year ago. Now our limits have been cut and our scores have dropped. But we want to buy a house. Houses in our area are starting to drop dramatically. We can secure a down payment of about 5%. But are lenders lending??
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September 12th, 2011 at 1:05 pm
Lenders are lending it just depends on how much your scores have actually dropped what your income is and of course your job status. I would get out there right away and find the house and get going on the process If one lender says no that doesnt mean that all will say no just keep plugging away and it will happen for you. I am a realtor and an LO I strongly suggest you rush out and get the house
September 12th, 2011 at 1:05 pm
may be, if u buy the mortgage insurance
September 12th, 2011 at 1:05 pm
You can get money, but you are gonig to pay a premium in your rates. People in the 700’s are getting 5% rates but it falls off quickly if you fall below the magical line they have made.
With only 5% down you’ll have to go with FHA which is a little tricky, especially if you buy a foreclosure!
September 12th, 2011 at 1:05 pm
limits have been cut? on credit cards? then that made the limit on the bank go up and that dropped your scores is that what you are stating. Then you need to pay these down to less than 1/3 of the limit and your scores will go up. FHA with most lenders requires at least a 620 score and 3.5% down payment and with many sellers they will pay closing cost