Good day gentleman,
Question…
I have a home which i live in now that has a appraised value of 275k
I owe 209k on the mortgage. The home is only 9 years old and in great shape.
I want to get into realestate and a couple of other business ventures that i have in mind, however my credit score stinks. 506 :banghead Is there any way I can pull some of my equity out of my home to begin my different business ventures? Any and all ideas are welcome.
With your credit score, I doubt you will find a lender that will allow you to refinance. If you did, the interest rates would be prohibitive.
Even if your credit score is excellent, you don’t have enough equity in your home to work with. If the bank will allow you to refinance up to 80% of your home’s appraised value, the most you could get is $220K. I am guessing you will have up to $6K in closing costs which leaves you just $5K for your effort.
Thanks Dave T…Something I left out that I’m not sure applies in the same manner. What if I wanted to do a HELOC? Does anyone know of finance companies that could help to set up a HELOC on my home with my current condition?
What if I wanted to do a HELOC? Does anyone know of finance companies that could help to set up a HELOC on my home with my current condition?
With your credit score you will not be able to qualify for the higher LTV HELOC that you are looking for. Lender’s classify a HELOC or 2nd mortgage riskier than a first mortgage.
Some of you won’t believe what I am about to say but here it goes
at my bank we don’t use credit scores! we lend our own money and manually underwrite every file. yes its true and I am flooded with loans. I have had a terrible 2 yrs and now I am closing 3-5 loans a week!!
Your absolutely correct. I don’t believe you.
I understand you skepticism - we are not a typical bank but since we lend and service our loans we make all the decisions. I just closed a 525 at 97% with seller paying 6% closing gave them a 7% 30 yr fixed.
ChallengeMe, if you don’t use credit scores, what is your criteria?
I just closed a 525 at 97% with seller paying 6% closing gave them a 7% 30 yr fixed.
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Sorry…had to break out the flag.
We are a direct Gnmae Bank. our niche is no credit score - low score FHA loans. look guys after 15 years in the biz its understandable you think it’s BS. I would too. I can tell you that I don’t post BS.
The only guidelines are that on purchases all collections must be paid before closing and all collections on refi’s paid at closing even medical.
the bank has been around for 30 years and my immediate president of operations made the comment the way they think - if they close 40M a month and 2M goes bad - its all worth it- - bottom line GREED
Matt,
We’ve gone a couple rounds on other forums about some of your posts (most of which are genuinely helpful). I’ll give ya the benefit of the doubt that you’re getting them done because I use to know some FHA lenders that were doing the bottom of the barrell FHA deals. Lender and most there employees are no longer around though because of that. Couple questions.
How long have you been with this lender?
What is your experience with FHA loans prior to these?
Is it a bank that allows wholesaling for brokers to send in deals?
Is your bank servicing these are packaging them off for sale to another lender?
Assume that since FHA there is a 90 day seasoning period for purchases?
Why are you still using a yahoo email address?
Thanks
Schoolboy,
With that kind of credit score you need to focus on clearing up debt, budgeting, and saving. Not nearly as much fun as going out and buying a house, but much more important in your case.
Don’t put your family home in jeopardy if you haven’t mastered the financing skills that you MUST HAVE.
Read the post: “Advice for Newbies, Only 1 in 100 will Follow It” before you do anything more. This advice is really meant kindly. You can’t run before you can walk. The advice is simple:
- Pay off all debts except your mortgage.
- Save some money.
- Now buy some real estate that generates more money.
Furnishedowner