thats a pretty low score, you will probably have to do an FHA loan (gov. loan). These are pretty good and the rates are as well. you will unfortunatly have to follow some of their guidlines regarding what type of house you can buy. for instance, if you were looking at a manufactured/mobile home, it MUST be on a permanent foundation, or you will not get the loan. They also require not only an appraisal, but structural engineering reports on certain types of housing, that must pass in order to recieve the loan. You’re looking at about 6.5% interest, and 1-2 points (closing $$). hope this has helped. I recently went through countrywide mortgage group, and they are really great at giving out information. Can’t hurt to make the call
good luck!
FHA or Accredited Home Mtg, Beneficial or American General…I would locate a mortgage broker in your area. They’re better equipped to handle “special needs” loans than your normal banking institutions.
Don’t forget with FHA you’ll need 3% down to qualify. This down payment can come from a gift (from family members) or can be coupled with a grant program. With a gift program your seller must be willing to pay the 3 – 6% from his proceeds toward the gift.
3 Responses to Does anyone know of a subprime lending for home mortgage score a little less than 600?
golferwhoworks
February 4th, 2010 at 4:06 am
FHA– is the best source but yes there are still some subprime lenders available.
I am a mortgage banker in TN & KY
Dani
February 4th, 2010 at 4:56 am
thats a pretty low score, you will probably have to do an FHA loan (gov. loan). These are pretty good and the rates are as well. you will unfortunatly have to follow some of their guidlines regarding what type of house you can buy. for instance, if you were looking at a manufactured/mobile home, it MUST be on a permanent foundation, or you will not get the loan. They also require not only an appraisal, but structural engineering reports on certain types of housing, that must pass in order to recieve the loan. You’re looking at about 6.5% interest, and 1-2 points (closing $$). hope this has helped. I recently went through countrywide mortgage group, and they are really great at giving out information. Can’t hurt to make the call
good luck!
mccray_51
February 4th, 2010 at 5:32 am
FHA or Accredited Home Mtg, Beneficial or American General…I would locate a mortgage broker in your area. They’re better equipped to handle “special needs” loans than your normal banking institutions.
Don’t forget with FHA you’ll need 3% down to qualify. This down payment can come from a gift (from family members) or can be coupled with a grant program. With a gift program your seller must be willing to pay the 3 – 6% from his proceeds toward the gift.
Best of luck