Im in the process of looking to purchase a condo/townhouse in New Jersey. My only problem is that most of the places i call either want 10% down payment or 3%. I was looking to find something with no money down but I dont know whats the chances of that with my score of 571. If anyone can help me find a bank thats willing to do 100% financing that'd be great, if not then at what scores do they usually offer 100% financing?

 

Are you a first time home buyer?

 

yes I am.

 

look into an FHA loan

 

I'm a broker and I have at least two banks that offer 100% financing via an 80/20 combo at 575. You will need 2 years solid job and rental history, but otherwise, the loan is usually a go.

The rates suck but that should be expected with a 570 score. Look into a broker in NY. They should have access to the same or similar lenders as I. It's not the greatest option, but none the less, its an option.

It looks like you need about 5 points in score to qualify but that is very simple to obtain. Post if you need tips to raise your score.

 

Oh, by the way. 580 is usually the cutoff for most subprime lenders to offer 100% financing. All mine start at 580, except the two I mentioned who start at 575.

You will only find these programs through a broker though - which isnt a bad thing. Just make sure you find one through a referral so their service can be voutched for, vs just calling one out of the phone book.

 

thats kool. What are some ways I can get my score up a few points? Im making my credit card payment on time and my car note. Also Im in disputes to get an error corrected on my report.

 

How did you find your score? If you had it pulled from a lender, the report will have some valuable information to answer those questions.

On a "hard pull" credit report, you'll usually see very similar formatting. Each score usally has 4 statements beneath it which identify the issues effecting score. The first two statements effect 60% of your scores potential. The second two effect 40% of your scores potential.

If you do not have access to that data, the strongest rule of thumb for improving your credit is to pay down your balances on credit limits. A balance over 30% of available can really hurt your score. The quickest way to grab some cheap points is to pay down a credit balance to 30% or less, or ask for an increase in limit which may also bring that balance closer to 30%. The latter will take a month or two for your score to bounce back from the increase credit pull inquiry though...then youll see the points. Oh, and the car is an installment loan. Installment loans only really hurts your points with lates.

Hope that helps.

 

When I was shopping around for a lender, they were all telling me about the first time homebuyer program... Unfortunately I couldn't use it cause I'd be making more than the maximum required salary per year from all the OT I worked on this year... Might want to ask a lender if they have such a program and if it'll work for you. Good luck!

 

Yes the report that I have was pulled from a lender.
I'll definately look into doing all of that. Hopefully i'll get my score up within the top of next year so I can begin my home buying process again if I cant get anything done at the moment.