Getting Pre-Approved for a small home loan?
Question:
$50,000 loan - $10,000 down (so the loan would be for $40,000)
E-Loan said my credit score was 589. Total income for me and hubby will be $1,050 a month.
We want a traditional loan 15 or 30 years with payments under $350 a month.
Any suggestions on who to go with?
Answer:
Most online lenders won't take a loan less than $50,000.
Try LOCAL lenders, please stay away from the 'net, there has been so many problems associated with online lenders.
Ask your Realtor for some suggestions on who can help you.
Good luck!
Talk to your local banks. They may have some leeway that the larger lenders don't have.
You are looking to finance 80% on a purchase -- not bad. Keep in mind that you will have other closing costs, not just the 20% down.
The mortgage industry has made drastic changes in the last few months. A credit score of 589 may be difficult to find financing, but beware of fraudulent lenders - Ameriquest, for one.
The company I work for will not do loans for less than $50,000, but there may be lenders who will. Keep searching, I'm sure you'll find something. :)
Try Quicken Loans, or another lender that will do low-income loans, such as the FHA loan.
that would be a loan for 40,000, and you will be lucky if you can even find a mortgage home loan for anything under 50,000. find a 62,000 house and put down 12,400. you will have MUCH better luck,
last i knew wells fargo and im sorry i cant remember who the other company was, but they were like the last two companies to do such a low valued loan, and that was in october, and if one stops, then the other does
Any way you can spruce up your credit score a bit as well? Really hit the credit card debt, car debt, etc and that sort of thing hard and then maybe it will come up a bit. Always double check to make sure there is nothing shady on your score. But 10K down ain't bad to start.
Edit: what you could also do is put some or all of the10K you have saved, knock out your car loan and any credit card loan so you'd be debt free except for the house, and go for a low 15 or 30 year fixed. Two books I would check out would be Dave Ramsey's Total Money Makeover and David Bach's The Automatic Millionaire. Good luck.
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