I am having a score of 630. How good the score is as I am thinking of taking a home loan. Few of my friends has indicated me that this score may not be sufficient for the loan.
If your score is low, you'll pay very high interest rates, up to 23%.Score ,600 – 640 You should get 100% home loan financing. Thats right, with no money down. Some home loan company checks credit score like "Florida Homes". sometimes credit scores do not seem to make any sense at all. One borrower with a completely flawless credit history had a FICO score below 600. One borrower with a foreclosure on her credit report had a FICO above 780.
As richard told you about some company don't give more advantage to
credit score.These type of companies use LTV concept.
Loan-To-value Ratio(LTV)
Concept in calculating loan eligibility would be the ratio between the amount being borrowed and value of the property being placed as collateral. The common name of this ratio is "loan-to-value" or LTV. Easy examples include: A borrower qualifying for an 80% LTV loan buying a $100,000 house could obtain a loan for $80,000; refinancing a $200,000 house at 70% LTV would mean a $140,000 mortgage. Borrowers should note that the value used for this calculation on new purchases would almost always have to be the lower of the purchase price or the appraised value. With a refinance, provided that the home owner has been in the property for a long enough period of time (usually six months to a year) appraised value only may be used in the loan to value calculation.
If your credit score is between 550-650 then you are eligible for 80% LTV.
Many home loan companies are reluctant to finance people with bad credit or no money to put down.
Some bad credit home loan lender helps you get your loan approved much faster than programs offered by credit unions and banks. But you have to pay the price to get a bad credit loan. The loan you get will carry a higher rate of interest and will have higher closing fees.It is advisable to check the rates with a few more bad credit lenders and compare. Even though you have to pay a higher rate, see that the one you settle at is reasonable and the most favorable. At present interest rates are low so try and get the best deal.You can always wait a while, improve your credit score and then get a loan at a low rate of interest. Some bad credit home loan loans carry a pre-payment penalty, so make sure your loan doesn't have one. These bad credit home loan loans have 6 months to 2-3 years pre-payment penalty. This means you have to pay huge sums of interest for at least 6 months before you can pay off the loan. If there is a pre-payment penalty you should take the loan that has the shortest term so that you can pay off the loan quickly without paying any penalty.To compare loan offers complete our short form above. home loanLoan helps you find the best bad credit refinance loans, bad credit home equity loans, bad credit home purchase loans and bad credit debt consolidation loans.
welcome to the forum
If your score is low, you'll pay very high interest rates, up to 23%.Score ,600 – 640 You should get 100% home loan financing. Thats right, with no money down. Some home loan company checks credit score like "Florida Homes". sometimes credit scores do not seem to make any sense at all. One borrower with a completely flawless credit history had a FICO score below 600. One borrower with a foreclosure on her credit report had a FICO above 780.
regards
richard
hii
As richard told you about some company don't give more advantage to
credit score.These type of companies use LTV concept.
Loan-To-value Ratio(LTV)
Concept in calculating loan eligibility would be the ratio between the amount being borrowed and value of the property being placed as collateral. The common name of this ratio is "loan-to-value" or LTV. Easy examples include: A borrower qualifying for an 80% LTV loan buying a $100,000 house could obtain a loan for $80,000; refinancing a $200,000 house at 70% LTV would mean a $140,000 mortgage. Borrowers should note that the value used for this calculation on new purchases would almost always have to be the lower of the purchase price or the appraised value. With a refinance, provided that the home owner has been in the property for a long enough period of time (usually six months to a year) appraised value only may be used in the loan to value calculation.
If your credit score is between 550-650 then you are eligible for 80% LTV.
~carol
hi jolei
Many home loan companies are reluctant to finance people with bad credit or no money to put down.
Some bad credit home loan lender helps you get your loan approved much faster than programs offered by credit unions and banks. But you have to pay the price to get a bad credit loan. The loan you get will carry a higher rate of interest and will have higher closing fees.It is advisable to check the rates with a few more bad credit lenders and compare. Even though you have to pay a higher rate, see that the one you settle at is reasonable and the most favorable. At present interest rates are low so try and get the best deal.You can always wait a while, improve your credit score and then get a loan at a low rate of interest. Some bad credit home loan loans carry a pre-payment penalty, so make sure your loan doesn't have one. These bad credit home loan loans have 6 months to 2-3 years pre-payment penalty. This means you have to pay huge sums of interest for at least 6 months before you can pay off the loan. If there is a pre-payment penalty you should take the loan that has the shortest term so that you can pay off the loan quickly without paying any penalty.To compare loan offers complete our short form above. home loanLoan helps you find the best bad credit refinance loans, bad credit home equity loans, bad credit home purchase loans and bad credit debt consolidation loans.