Poor Credit- What are my options?

[Chrystal]

I am interested in purchasing a preowned mobile home with land, I have poor credit, my FICO is 530's range.. long story; I previously owned my own business and hit some rough spots and had to close and as such I have some collections and judgements on my credit but do have good pays on my vehicle for over a year, some small loans and a couple other things and have a steady income. What are my options? I would have around 4,000 to put down; would I be able to go through a traditional lender or better off doing some sort of creative financing with any individual? I realize I will have a higher intrest rate due to a poor score but do I have a chance?

Thanks,
Chrystal

[rmurray]

Judgments are a deal killer for national lenders....In most states judgments are legal liens on everything that you own...If they are filed prior to the mortgage lien..they would come first and can force the sale of the home...Also..in many state judgment holders can reach into your checking account and take your money...or worse yet..get a garnishee on your wages, leaving you with little option but to file bankruptcy...All not good for your home lender..Normally..if there are open judgements..nation home lenders will not make loans..

I would purue the seller finance route..

[David Oxhandler]

Seller financing is a real option in many markets today. Due the decline of confidence in the stock market and the unusually low interest rate of the past several years many private investors have been financing homes of all types for buyers with less than perfect credit. Phone local dealers and see if any of them are participating in seller financing or GO to your favorite search engine and search for "mobile home notes".

[Chrystal]

I stand corrected, my FICO is 572 and I have no judgements, only a charge off and a few collection agencies and at least 4 good payees (steady) over a course of 1-2 yrs and I am in Texas.. Does this help my chances any?

[rmurray]

This is a whole different story...If all has been great for the last 2 years..NO 30 day lates in the last 12 months...collection are small (less than 2500 total and none over 1500).. or old...(If collections are over these amounts..there are still ways to get approved on the FHA..you will need a skilled loan originator or dealer who knows the rules very well)

You are a fully qualified to buy on the FHA program...The FHA program will finance a new home..land and improvements at good rates for up to 30 years...Your $4000 cash commitment should be enough to make this happen...

The FHA will do used homes that have never been used..and these homes MUST be set to FHA standards...There will not be many of these available in the market...but it is worth a look..

Shop around carefully...be sure you like the home you buy..this is a long term decision...Find a dealer willing to help in everyway...

Good Luck..Go for it..

Credit score does not come into play with the FHA...but they do look at all 3 credit b's for information...good and bad..

[Dr. Craig Whisler CA]

Murry you have hit the nail on the head with your post.

In some areas such a California, however, judgments do not become a lien, unless recorded with the county recorder's office and then they only attach to real property, not personal property. The purchase of a mobile home, unless, with land and on a permannt foundation, would be personal property and unaffected by a recorded judgment lien. You must also differentiate between judgments on file in the records of the court of orgin and judgments recorded in the county recorder's office. If any lien is created by recording it in the county recorder's office, it will automatically attach to subsequenbtly acquired real property, as you have stated. It attaches immediately, as soon as a new deed is recorded. Lenders, when financing a new purchase of mobile home/real property, record your deed and their deed of trust or mortgage consecutively, with the deed coming first. There must not be any intervening liens. If there is a recorded judgment on file at the county recorder's or parish recorder's office it will attact to the property immediately after the deed is recorded and BEFORE the trust deed or mortgage steming from a new loan. This is true even if the deed and deed of trust are reorded consecutively. It is for this reason that most institutional lenders will either not make a loan in the face of prior recorded judgments, or they will only do so if the judgment liens are paid off first. This is necessary to protect their interests.

Regards, doc

[Terry]

Hello-I have the same problem and my personal bank is going to help me get going. I should have gone through them in the beginning. So start at home first, girl! God's best to you!