Low Credit Score

Financing, Hard Money Lenders, Private Money
1

Hi all,

Realistically, what are my chances of getting 100% financing with a low credit score. Credit score is 575.

Thanks!

2

You can’t get a 100% NOO loan from a traditional lender with a 575 credit score. You can find some HML that will finance a 100% loan for you, but you will need to find a deal that looks like the example below.

Example:
100,000 purchase
20,000 rehab money
6,500 closing costs

126,500 Total Loan amount.

200,000 ARV (Its value after repairs are complete).

3

Aside from taking the ARV based lending approach that Iron pointed out, there are other ways to 100% with that score.

If you can enlist seller participation (get them to agree to a seller 2nd), you could configure a 90/10 combo (90% Lender 1st +10% Seller 2nd).

Regards,

Scott Miller

4

Good Morning,
It is possible ,although thruogh traditional financing it will be near futile. I purchased three homes this month, 2 with no money,and one sub2 taking over payments and paying closing costs. The other 2 were tied up with contracts then assigned at closing.
Hope this helps, Darin

5

Thank you for the replies. They were very helpful.