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Is it possible to get a new home w/ current score

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Anonymous
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Is it possible to get a new home w/ current score

My husband and I are expecting our 3rd child and want to move to a bigger home.  The current mortgage is in his name and his score has taken a plunge from being unemployeed for about 6 mnths about 2 yrs ago. We also opened a business around the time the company closed and had put our savings into that. That being said my score I have been trying to improve and am around 575. Is it possible to go for a new home in my name, both names or what. Also I run the business and do not take an income yet.  My h has been w/ the new company @1 1/2 yrs salary at 75K. We have just accumulated alot of debt from loans for business and falling behind in payments for him being unemployeed. He has owned home for @ 10 yrs. and until unemployment paid faithfully ontime every month. Current rate for mrtgage is killing us at about 8.5%  Please help
Message 1 of 6
5 REPLIES 5
Tuscani
Moderator Emeritus

Re: Is it possible to get a new home w/ current score



3ontheway wrote:
My husband and I are expecting our 3rd child and want to move to a bigger home.  The current mortgage is in his name and his score has taken a plunge from being unemployeed for about 6 mnths about 2 yrs ago. We also opened a business around the time the company closed and had put our savings into that. That being said my score I have been trying to improve and am around 575. Is it possible to go for a new home in my name, both names or what. Also I run the business and do not take an income yet.  My h has been w/ the new company @1 1/2 yrs salary at 75K. We have just accumulated alot of debt from loans for business and falling behind in payments for him being unemployeed. He has owned home for @ 10 yrs. and until unemployment paid faithfully ontime every month. Current rate for mrtgage is killing us at about 8.5%  Please help


I am no mortgage expert, but I am thinking you need to get your scores higher to beat that current rate. Can you give us more detail on what your reports contain so we can offer suggesstions on improving your score?
Message 2 of 6
Boswd
Valued Contributor

Re: Is it possible to get a new home w/ current score

also is it possbile for you to wait a couple of years until your finances are a little more under control?  With the past Sub-Prime mortgages problems and foreclosures, everyone it seems are going to be tightening their restrictions and if you can hold off a couple of years and get your debts ironed out and get your credit score up a bit, that could save you thousands of dollars in the long run. 
Message 3 of 6
Anonymous
Not applicable

Re: Is it possible to get a new home w/ current score

being sel-employed, you will have to go stated income for documentation purposes. As stated previously, the subprime market has been destroyed. With your current FICO score, you would need to have a considerable down payment to even be considered. How long have you been in business?
Lenders are going to look for a business that has been running for 2 years at least.
 
It is probably a good idea to to focus on improving your credit situation while you get the required time in business (If you do not have 2 years). Save some money for the Down Payment, get the credit up, establish a strong business ==> get great rate.
Message 4 of 6
Anonymous
Not applicable

Re: Is it possible to get a new home w/ current score

3ontheway,

 

FHA, VA and naca.com are at least three ways one can get a loan without perfect scores. They look at DTI and with FHA you can have no lates in the last year.

 

Talk to a mortgage broker rather than a bank. More than likely, they can find you a better deal. PM me if you like and I can point you to one whom I know will help you.

Message 5 of 6
Anonymous
Not applicable

Re: Is it possible to get a new home w/ current score

I work in a mortgage broker office and I will tell you a stated self employed borrower will need a score of at least 620 in this current market add in the fact that it doesnt seem like you have had the business that long and you are not going to have an easy time.
 
What are your husband's scores like?  His income is from the business you started? Have you been late on your mortgage?
 
Honestly the rate of 8.5 is great with your current situation and I dont know that you will get much better if you even get approved.
 
Sorry I wish I had more positive things to say Smiley Sad Keep working on your credit, its a lot of work I know I am right there with you.
 
Good Luck and Congratulations on your baby on the way
Message 6 of 6
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