Does anyone know where I can get a mortgage loan with bad credit?
We need to get a loan ASAP. We are in a lease to own agreement and time is about up. We have been doing things to improve our credit. A lot of neg have come completely off and others have been paid. We thought our score had increased but today we found that after all this time it only went up about 4 points. 579 536 505 are the three scores. We have about 8900 invested in the house rt now. We still need to get a 100% loan. I know the interest will be high but we dont want to give up this house. If any one can help please let me know. Thanks
With scores in the mid to low 500 range, it will be almost impossible to find a conventional lender that will get a 100% loan for you. Private money is possible but most private lenders don't do 100% financing with whats considered risky borrowers. I see you at least took steps to improve your credit score, however I would need to know what you did. There are a lot of misconceptions about credit. Many people are shocked to find thier credit score decreasing even though they have never made a late payment in thier lives. Others close accounts or payoff collection accounts only to find out thier credit score actually went down. In the end, the only two things that can increase your credit is smart spending and time. There are several companies out there that can remove things off of your credit report but only things that are erroneous. If you owe it, you cannot legally take it off. Also, many of these companies will ask for up front fees that can be quite pricey. I had one client that paid $5000. This is also illegal under the Credit Report Organizations Act. I have had clients have one of these companies remove tradelines off of thier credit reports, only to see them reappear a few months later. There are good companies that will help you with your credit situations and they only charge $60 to $100 a month. I have attached a link for you.
You can also ask your landlord to carry a second mortgage. It is possible to get a loan for about 80% of the sales price and if your landlord is willing to become the bank on the 20% left over, then you can accomplish what you want. Your landlord would get 80% of the sales price up front and receive payments on the remaining 20%. After a year or two, you can refinance to pay him off. Not exactly the best way but it might be worth a try. I have seen people in your situation also find a new landlord that is willing to give them the same agreement as the previous landlord. The new landlord would buy the house, give you a new lease to own contract which would give you some more time to improve your credit rating. Check with a good mortgage broker in your area since laws vary from state to state. If you live in the western US then check out the link to a mortgage company I know that specializes on the subject.
Also there are several mortgage brokers that will tell you to use opt-out to increase your credit score. This does not work. There is nothing in the fico, beacon, or empirica algorithm that addresses opt-out. All opt-out does is prevent your credit file from what are called "soft" inquiries so your information is not released to other outside entities such as credit card companies. Although, this will decrease the amount of junk mail you get, it does nothing for your score. Contact the credit bureaus for more info.
Hope this helps.