Anonymous
Anonymous asked in Business & FinanceCredit · 1 month ago

Bad Credit Mortgage Lenders?

My credit score is around a 560 On TransUnion and was wondering if any mortgage lenders would be able to help me? I have a $3,000 loan in collections and that’s why my score is so low. 

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  • A.J.
    Lv 7
    1 month ago
    Favourite answer

    Are you a military veteran to apply for a no money down VA loan? If not, all home loans require a down payment that is not borrowed. Availability of a down payment means the first money goes to your debt holders which pays off the collectors and raises your score so you start saving again for down payment.

    Borrowers can qualify for an FHA loan with a down payment as little as 3.5% for a credit score of 580 or higher. The borrower’s credit score can be between 500 – 579 if a 10% down payment is made. It’s important to remember though, that the lower the credit score, the higher the interest borrowers will receive.

    Then you face the maximum PITIH to your income of at least a couple of years.

    Principal+Interest + property taxes + Home Insurance + Home Owners Assn fees.

    https://www.zillow.com/mortgage-learning/fha-loan/

    The PITIH maximum is based on percent of gross income. Higher interest loans at lower credit scores raise the payments and lowers the maximum loan.

    Also, there is a total debt load percent of gross.

    Non-FHA 1st time buyers face the same scrutiny and higher down payments.

    This is no longer year 2008-2009 with no money down loans to risky buyers.

    Regardless of credit score - 

    Need down payment cash. If you had cash it goes to your debt in collections. If you pay that off, you still need down payment, with a higher score.

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  • 1 month ago

    Yeah, with such a relatively small loan in collections, there's no way you'd qualify for any other loans now, big or small.

    Forget a mortgage, no one will give you one with that lousy a record.

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  • Anonymous
    1 month ago

    No, you are a risk so getting a mortgage isn't in your near future.

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  • 1 month ago

    Your score is so low because you don't pay your bills.

    A lender is to not lend you tens of thousands of dollars, if you don't pay $3000.

    • ...Show all comments
    • A Hunch
      Lv 7
      1 month agoReport

      I don't need to assume, you have told multiple times that you didn't pay the bill.  How were you supposed to pay the loan when you didn't have a job = savings?  odd jobs?  sell stuff?  Or don't take a loan that you can't afford to pay if you didn't have the same income. 

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