By Admin on Jun 29, 2009 in Renting & Real Estate
drgnldy129927 asked:
My husband and I both have fairly bad credit. Our scores are both in the low 500′s. We would like to purchase a foreclosure which is currently priced at less than half it’s appraised value. Could the built in equity help us to qualify for a mortgage? We are both first time home buyers.
The home is valued at $120,330.
My husband and I both have fairly bad credit. Our scores are both in the low 500′s. We would like to purchase a foreclosure which is currently priced at less than half it’s appraised value. Could the built in equity help us to qualify for a mortgage? We are both first time home buyers.
The home is valued at $120,330.
sorry you have zero chance….
mar c | Jul 1, 2009 | Reply
Sorry but the answer is no.. Why? will you will still need a loan,and no matter how low the price is meaning how much equity would be in the place,you will still need a loan,now a loan is based on your credit score,the amt you put down and your income.. So with your score you would have to come up with a sizable down payment and have very good incomes..If this do’s not work this time i would suggest you get a copy of your credit report and work on paying off all your outstanding debt. Then go out and make the deal. Good luck.
jack | Jul 3, 2009 | Reply
No, it does not work that way. They are being very careful on whom they lend to and someone with a credit rating as low as what you have will not get you into anything. Suggest on bringing your rating up and then applying for a loan.
Sweetharttt | Jul 4, 2009 | Reply
The house is only worth what a willing buyer will pay for it. The $120,000 appraisal DOESN’T MATTER if the asking price is $40,000. There is no equity in it yet. If you put $5K down and buy it, the equity is still 5K.
If it is really worth $120K, a professional would have bought it already for $40K, turned around and listed it for $80K and been out. The fact that it is available says that something is wrong. Either the appraisal is old and comparable home values in the area have plummeted, there’s been lots of damage since the appraisal, or no one is buying. And if no one is buying, it’s only worth what someone will pay.
PennyLeeD2 | Jul 5, 2009 | Reply
Have you actually seen that appraisal? If you pay 40k for it that becomes its present value.
No one will give you a loan with that kind of credit.
It is really is that great a deal it will go to a cash buyer anyway, so you did not loose it, you never stood a chance.
Landlord | Jul 8, 2009 | Reply