Q&A: Am I likely to receive a loan on a house if I have no credit established, but pay a large portion up front?
Question by Oliver: Am I likely to recieve a loan on a house if I have no credit established, but pay a large portion up front?
For example: if the house were around 90k, and I placed 40k down, would I be likely to receive the loan for the remaining 50? (30 year fixed)
Best answer:
Answer by Ocean Queen
With a big down payment like that you can get approved, but if your credit is in bad shape you can be looking at higher interest rates and higher monthly payments. Make sure to ask all these questions prior. The market is slow so it can go either way. Good luck.
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Categories: Credit Score Questions Tags: Credit, established, front, House, Large, likely, Loan, portion, recieve
Q&A: Paying off debt to get a better rate for buying a house.?
Question by Ervin: Paying off debt to get a better rate for buying a house.?
I’m currently paying down what I owe on my credit cards. When I receive my tax refund… I plan on paying it off. March of this year I will be debt free. Will that raise my credit score? I’m asking because in a about 1.5 to 2 years I want to buy a house with good credit.
Best answer:
Answer by Toni
Using less than 30% of your available limits is what keeps the scores up.
Ex: $ 1,000 limit – never use more than $ 300 at any time during the month.
That’s why experts will tell you:
Use your card for small things you need like food or gas and pay in full each month.
Make sure you do not close those accounts when you are finished paying them off.
You want to keep payment history, and you want to keep it ongoing.
By paying in full you never pay interest and can get those top scores.
A years worth of paying in full each month should get you a pretty good rating.
Enjoy purchasing your new home someday.
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How do I refinance my house without a credit score?
Question by Luvinmylife2: How do I refinance my house without a credit score?
I have excellent credit and zero debt. My house is paid for, debt free, and I do not have any outstanding debt. I have had loans in the past, but I’ve paid them off. Therefore, I do not have a credit score. I want to tap into the equity on my house and take out a second mortgage on my home, but the bank says that I do not have a credit score. Does anyone have any ideas on how I can get a competitive rate with no score?
Best answer:
Answer by Major Mortgage Lender
Many mortgage loans do not require credit scores. Typically, FHA loans and loans provided by the Federal National Mortgage Association (Fannie Mae) do not require credit scores. In addition to your past credit history you may also provide alternative credit histories for these loans to help you qualify such as utilities, cellular phone bills, and car insurance. A consistent savings history is also acceptable as alternative credit.
You may be running into more problems by looking for a “second mortgage”. More often than not these mortgages are credit score sensitive. However, if you have a small locally owned bank who makes thier own decisions or a credit union you belong to coupled with NOT trying to take a high percentage of your equity out in cash you may find some takers.
What do you think? Answer below!