If you have bad credit, how much more they pay for a loan of $ 100,000.00 in total than usual a.?

Deal Score0

It is an issue mortgage.
Is it possible to obtain a 100% mortgage financing with credit scores of around 525? I’m not concerned with the interest rate I want is a home refinancing, then come first. Besides, who knows what can you get the highest rate of interest on a mortgage? Thank you!

7 Comments
  1. Reply
    indiana_crank
    February 19, 2011 at 10:26 pm

    You may get socked with a couple percent points more than normal. That is, if I can get 6%, you may pay 8%.

  2. Reply
    TD
    February 19, 2011 at 11:19 pm

    If the credit is really bad the interest rate and loan terms can be much higher as much as 18% which is a lot on such a large loan. It’s not worth it. Take the time to save or fix your credit before you invest and commit to such a long term debt. Don’t be in a such a rush that you don’t get the best deal possible.

  3. Reply
    Lauren F
    February 20, 2011 at 12:04 am

    Sorry – no bank is going to touch this one. Why do you think they are in so much trouble? They lent money to people with no money down and bad credit, so the first bump in the road and the homepurchaser went into default.

    Also, refinancing will cost you thousands of dollars, and there is no guarantee you will be able to do this if the value of your home doesn’t go up.

    Do yourself a favor – if you have some spare cash, pay off whatever is causing your credit score to be so bad, save up a downpayment equal to at least 5% of the purchase price of the house, then go shopping.

  4. Reply
    Rush is a band
    February 20, 2011 at 12:52 am

    Unless you qualify for a VA loan it wouldn’t matter if your credit scores were 825 – no one has 100% financiing anymore. Even the FHA backed loans require 3.5%

    So the first part of your first question is no, it’s not possible. The second part of your first question has the same answer. It’s not possible to get a mortgage today with a credit score of 525. A credit score of 525 means you make a habit of not paying what you owe. Why would someone make a very large loan to someone who is in the habit of not paying what they owe? Guess what? They don’t do that.

    Refinancing isn’t easy and it isn’t cheap. You essentially pay closing costs all over again. Some states let lenders put pre-payment penalties in so that the lender makes a lot of money when you go to re-finance.

    Since jumbo loans with good credit can run 7% in this environment, I’d imagine you could easily get to 9-10% if you could even find someone willing to finance you.

    good luck!

    ps – you’d be much better off cleaning up your credit and saving money for a downpayment.

  5. Reply
    Dan C
    February 20, 2011 at 12:53 am

    creditreport.undonet.com – try this service to boost you credit score before getting loan. After credit repair you can get the loan with minimal interest rate.

  6. Reply
    S
    February 20, 2011 at 1:35 am

    This site has some great, bad credit loan options. Found it useful.
    http://badcredithomeloans4u.blogspot.com/

  7. Reply
    smrtblondie
    February 20, 2011 at 1:46 am

    I’m not sure where you’re coming from with this.

    You’re basically asking a lender to believe that (1) you will magically find a way to pay back 100% of the cost of the new home, with interest, (2) you’re a safe bet when you won’t risk a dime of your own money on the purchase, and (3) that the market will suddenly reverse to the point you’ll flip a house if you need to to repay the loan.

    Maybe you think it’s still March 2008. You will never find a lender willing to accept this risk without security. Or to put it another way: You will never find a lender to finance you 100% without security regardless of you credit score. You will never find a lender to finance you part way with a crappy credit score. IF you find 20% down, you MAY find a financier to put up the rest WITH a significantly higher credit score; but plan on a pathetically high rate.

    The days of getting into a home simply because you “want” to are long, long gone.

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