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Downpayment question


msldystrkr
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I have problem credit with a score of about 525 to include recent late payments.... long term employment of 25 years and make about $6700 a month.

I am wanting to purchase a home with at least 30% down = $70,000 cash from the same of my existing home. I have decided to look for a home in this area from $150 to $225 or to build....

Where do I start to look for a loan and how should I proceed with my credit? I apreciate all advise!

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With that much down, you will be able to get a loan. The rates will be bad, but it tounds like you can get your credit up to the point where it needs to be with some work, and then you can refinance in a year or two, it will normally take that amount of time before you can get your scores up to the 640 range, where the rates are very good.

Why is your credit were it is? You mention late payments, are they on your mortgage or credit card/automobile type loans. The only thing that will fix those payments is time, after 12 months, they will not lower your scores as much.

The other thing that can lower your scores are your credit usage. If you are maxed out on your cards, that will bring your scores down a lot. There is a remarkable difference between 50% and 100% of utilization.

Lastly, if you have recently paid off some collections, that will lower your scores, as the Date of Last Activity has an influence. Sounds dumb that if you try to get caught up with your creditors, and pay them, it actually lowers your scores.

Hope that helps.

Charles

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>>With that much down, you will be able to get a loan.<<

I was sure I could aslo - thanks for letting me know! Now to find a lender...

>>You mention late payments, are they on your mortgage or credit card/automobile type loans. The only thing that will fix those payments is time, after 12 months, they will not lower your scores as much. <<

I am late for 2 reasons - one is bad money management and two is a bad business decision with family involved that caused the bad money management. I was late on everything.... niow playing catch-up! I have listed my home for sale and that will take time so i am hoping that I can get all caught up before I need the new loan....

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It would be really helpful to know right off your recent mortgage history. If you have been severely delinquent on the mortgage payments (more than 60 days twice, in the past year), then financing the new home could be difficult. If you get to 90 or 120 days late, then things could get real ugly.

It's best to know this upfront, because if you could not get financed for some reason or another, the home where you currently live may be gold.

I was sure I could aslo - thanks for letting me know! Now to find a lender...

There are a couple of good ones around here on this board. They mostly hang out here in this mortgage section.

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