Under 500 Scores

[OregonLO]

Is there even a subprime lender out there that will touch a score like this at 100% I have a client that I think even I can't find a loan. I have a great deal of lenders even a lender that will work with a 500 score but not under 500.

Anyone know of someone I should get my broker to sign up with?

[promortplanner]

Don't waste your time. Your time is your most valuable assett. Chasing these kind of deals will significantly reduce your earning per hour ratios. No conventional lender will touch a sub 500 at 100% on a refinance. For a purchase the fico score requirments are even higher. Encore credit used to do loans down to a 475 fico but would cap the LTV to 65%. In some cases hard, soft, and private money lenders will go to 85% but there has to be some strong compensating factors to make it happen. If they will entertain the deal, you're looking at 3-5 points with interest rates anywhere between 10-15%.

Consider short sale strategies that potentially allows the purchase of the property for less than what is owed. We can talk in detail if you want additional information.

If there has been lates on the mortgage and no notice of default has been filed - the existing owner needs to sell and get out. Could be a great investment opportunity if the right approach is considered.

[OregonLO]

I'm not spending much time on it. My time is definitely too valuable to waste and I have too much to do to chase dead leads. I might as well go be on the boat at the lake if I'm going to chase those leads. I'll make the same amount of money and have more fun..haha..

I'm looking at picking up some NOD properties. I'm working up paperwork to present to a couple investors so I can purchase then update some things if need be and then flip it.

[100%latina]

Of all the lenders i work with, i don't know of any that will do 500 or lower. Like previously mentioned, don't waste your time. Nice of you to try, though.

Missy.

[OregonLO]

Oh i certainly didn't waste too much time. However because I did spend some effort on the file and pointed her in the right direction to repairing her credit she referred her friend to me so it was all worth it in the long run.

[subprimealta]

Minimum fico for 100% financing right now is 660 since the subprime explosion. Prior to that, it was 575. Sub 500 ficos are normally capped at around 70% LTV and have insane terms. Read the fine print, these lenders are nicknamed "Hard money"

[OregonLO]

Yeah, that post was almost a year old..haha. but I still have lenders that will do 620 100% in the subprime market.

[kandue]

Yeah, that post was almost a year old..haha. but I still have lenders that will do 620 100% in the subprime market.

who does that? care to share some names?

[OregonLO]

I don't mind sharing at all. I know of 2 lenders off of the top of my head that will do a 620 100% and they are Equifirst and First Franklin. Equifirst will also do a 640 stated still. Decision One will do a 640 full doc but I'm not sure if it is to 100% or not anymore.

Also, if you have a borrower with lower ficos that fits into the My Community Mortgage program that goes with a conventional lender that is a sweet product too. I use it all the time, IN MY COUNTY the borrower can't make more than $54,500 of annual income. It varies by county so check with your conventional lenders to find out the income requirements but its a great product for people who have a couple of old collections and are first time home buyers with a low 600 score. Its a FULL DOC only program.

Good luck.

[subprimealta]

My investors still have guidelines and matrices that allow 100% financing down to 620, however the pricing makes it impossible to actually close anything under a 660 fico.

Aurora Loan Services for example