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Posted: 10/26/2001 1:23:50 AM EDT
Wondering if anyone knew of any lending organizations out there who will lend low interest to couples wanting to buy a home with credit that is so-so? We have found a home with two acres that is perfect but need some help in buying it. Anybody have any leads? Thanks.
Link Posted: 10/26/2001 3:51:08 AM EDT
BTT
Link Posted: 10/26/2001 4:13:16 AM EDT
Are you a veteran?
Link Posted: 10/26/2001 4:46:52 AM EDT
there are many options other than low interest. i would try to negotiate a lease-option or land-contract with the current owner of a prospective property. offer full asking price (or more) over 30 years. this gives the current owners a steady income that they can count on (so long as you make the payments) and if you default they can resell to someone else (thereby makeing twice as much on the property) there are intricate details involved but it is doable and there are several ways to do it. (even with no money down.) hope this helps the_survivalist
Link Posted: 10/26/2001 4:53:15 AM EDT
I know someone with the same situation-they found lenders that would let them have the money they need- at a mere 11%. After a little looking they found if they just shopped arount-at the local banks, they could have a loan at almost normal rates. It always made me wonder why the people that have the least,get charged the most
Link Posted: 10/26/2001 6:36:50 AM EDT
Not sure how "so-so" your credit is, but you'd be suprised at what does not constitute derogatory credit. So some "slow pays" and larger balances might not exclude you from a conforming loan. Especially with some explanations and perhaps a larger down payment. So shop around a bit and find out, dont assume you're sunk. Primary criteria for any loan is - how much are you investing. Lenders approach things very differently at 50% LTV (50% "down") than 95% LTV (5% "down"). If you have at least 20% of the purchase price, it'll make it easier, as you can avoid insurance on the loan. The more you can put down, the more accepting underwriting is of credit dings. There are many variables, each loan if different, as criteria are interdependent. Get a good banker, they can walk you through. If you've already been to A (read 1) bank, try a few more; large, medium and small, as they each have different criteria. If you're still getting run around, try a private mortgage broker. A "good" broker can be your best shot. Like any profession a "poor" one can ruin you, or at least your deal. Not sure the regs in Texas, but they've become much more regulated nationwide. Dont let it fool you - shop and compare. Get three people telling you the same thing, more than likely thats the situation. Get different stories, ask questions. A professional, hungry loan officer will make things work. If your last option is a land contract or lease option, retain counsel. If the seller doesnt need his equity and has no other buyers, they may bite. But you need to protect both parties interest. Beleive me the sellers interest will be, as TS noted above. Most difficulties arise in land contracts when the seller defaults on his loan, and the property is foreclosed upon. You're out your money and home. Get represented by an ATTORNEY who has a real estate practice. Luck Alac
Link Posted: 10/26/2001 7:14:01 AM EDT
[Last Edit: 10/26/2001 7:09:04 AM EDT by Bud]
Try [url]www.lowratesusa.com[/url] The specialize in sub-prime lending at competitive rates. Bud *edited because I can't fix the darned link.
Link Posted: 10/26/2001 10:13:37 AM EDT
Thanks guys. This will help get me started. Yes, I am a vetern but it will take me too long to get qualified. The house was built in 1917. Approx 3200 sqf. 4 bed/2 bath. 2 floors, with a 700 sqf attic (another room or two!!), office, den, large kitchen, 2 acres, pool, trampoline. barn (can you say reloading shop!!!!!!), remote section of town, fenced. It would be perfect for our family! Hope this isn't a pipe dream. I appreciate all your suggestions, printing them off, as we speak, so I can follow up later.
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