topic Re: Is there mortgage lender that won't look at Experian report? in Mortgage Loans

Is there mortgage lender that won't look at Experian report?

samtom79 — Wed, 11 Mar 2015 03:22:04 GMT

I am helping friends of the family with their credit. They had a forclosure and house was sold at auction last August 2014. Wells Fargo only reported the loan and forclosure to Experian. Their Experian mortgage score is is 631 (him) and 653 (her). All other mortgage scores are 690-700 for both EQ and TU.

No sign of the mortgage or forclosure on EQ or TU.

I've heard they have to wait 2-8 years after forclosure but is that true if lender doesn't look at EX report?

Re: Is there mortgage lender that won't look at Experian report?

Anonymous — Wed, 11 Mar 2015 03:23:47 GMT

@samtom79 wrote:
I am helping friends of the family with their credit. They had a forclosure and house was sold at auction last August 2014. Wells Fargo only reported the loan and forclosure to Experian. Their Experian mortgage score is is 631 (him) and 653 (her). All other mortgage scores are 690-700 for both EQ and TU.

No sign of the mortgage or forclosure on EQ or TU.

I've heard they have to wait 2-8 years after forclosure but is that true if lender doesn't look at EX report?

I believe they will require all three to do their score balancing act.

I guess they could try freezing EX and seeing if it will fly but I doubt it. Can they join NFCU?

Re: Is there mortgage lender that won't look at Experian report?

samtom79 — Wed, 11 Mar 2015 03:39:04 GMT

Their son in-law is actually active duty navy but I don't know if that would allow them to join NFCU? Are there better options with NFCU?

Re: Is there mortgage lender that won't look at Experian report?

Anonymous — Wed, 11 Mar 2015 03:50:17 GMT

@samtom79 wrote:
Their son in-law is actually active duty navy but I don't know if that would allow them to join NFCU? Are there better options with NFCU?

Much better!

They should look into this posibility particularly if the son in law is a member.

Re: Is there mortgage lender that won't look at Experian report?

Lemmus — Wed, 11 Mar 2015 06:48:50 GMT

...afaik every mortgage lender will pull a trimerge CR from all 3 major CRAs ...you will have to deal with the foreclosure ...if you are using a govt guaranteed loan, their rules will be the baseline for how it is treated ...in addition, lenders all have overlays that impose requirements above the govt minimums ...the govt underwriting guidelines generally require a foreclosure to have been closed for at least 36 months ...but they also allow exceptions for "mitigating" circumstances such as unusual medical expenses ...it will be up to the underwriter if he allows an exception.

...there are loans available but you will pay for the lender's additional "risk" ...your best bet would be to use a mortgage broker who has access to a wide variety of mortgage sources and let them try to match you ...as others have mentioned, a CU may be more accepting but still, an 8 month old foreclosure is a difficult sell unless you can document some strong mitigation that shows it was a one-time occurrence ...hth

Re: Is there mortgage lender that won't look at Experian report?

mynameainttracy — Wed, 11 Mar 2015 11:40:07 GMT

Even if it doesn't show up on their CR they have to be honest on the application and disclose it. Having applied through NFCU I know it asks on the application.

I am surprised that it is being reported by WF only. I would have thought that would show up as a public record.

Re: Is there mortgage lender that won't look at Experian report?

ezdriver — Wed, 11 Mar 2015 13:53:01 GMT

@samtom79 wrote:
I am helping friends of the family with their credit. They had a forclosure and house was sold at auction last August 2014. Wells Fargo only reported the loan and forclosure to Experian. Their Experian mortgage score is is 631 (him) and 653 (her). All other mortgage scores are 690-700 for both EQ and TU.

No sign of the mortgage or forclosure on EQ or TU.

I've heard they have to wait 2-8 years after forclosure but is that true if lender doesn't look at EX report?

Answer to the question in your thread's title is yes, there are mortgage sources that do not look at credit reports. They are called "hard money" lenders. Such lenders care primarily about LTVs.

Re: Is there mortgage lender that won't look at Experian report?

StartingOver10 — Wed, 11 Mar 2015 15:46:15 GMT

@ezdriver wrote:
@samtom79 wrote:
I am helping friends of the family with their credit. They had a forclosure and house was sold at auction last August 2014. Wells Fargo only reported the loan and forclosure to Experian. Their Experian mortgage score is is 631 (him) and 653 (her). All other mortgage scores are 690-700 for both EQ and TU.

No sign of the mortgage or forclosure on EQ or TU.

I've heard they have to wait 2-8 years after forclosure but is that true if lender doesn't look at EX report?
Answer to the question in your thread's title is yes, there are mortgage sources that do not look at credit reports. They are called "hard money" lenders. Such lenders care primarily about LTVs.

^^^Yes EZ is right: low LTVs and high rates. From what I have seen you can get a mortgage one day out of a f/c but you need a min of 35% down and the interest rate will be in the double digits (9.9% is the lowest I have seen, but 12% is more typical). That is why it is called "hard money". These types of funds are not for the faint of heart and generally investors use them for quick flips rather than primary residences.