Is anyone Lending to the troubled?

[Anonymous]

Hello, I have a semi unique situation. I am 1/2 owner of a house in michigan recently i have relocated to NC the coborrower still occupies the michigan house. I am looking at a cheap property ($29,000)right now but also have moderately crappy credit. I am currently 535, 580, and 561. No bancruptcies but had a bad period a few years back with charge offs and collections. I have a modest income at $45K with no revolving debt. I do have many credit blemishes but have been current over 12 monthes on primary mortgage in mi and 10 monthes on its equity. I can go in with 20% . Since it needs TLC the equity will jump rapidly once i'm in.do you know of anyone who would likely lend under the current economic situation? Thanks for any input.

[ShanetheMortgageMan]

With your 20% down you are likely to be able to get an automated approval on an FHA loan, and there are still some lenders accepting sub-580 scores on FHA loans if you are able to get an automated approval.  The difficulty will be finding a lender who will do a loan amount that low in NC.  NC has laws regarding "high cost" loans, meaning that the total amount of closing costs can't be over a certain percentage of the loan amount you are getting.  This makes doing small loans for not so great credit very difficult to do there.  I might suggest you contact local banks in town, sit down with a loan officer and explain your situation (with your credit scores and all) and ask if they would have a loan program for you.

Also, what type of property did you find?