land/home financing
Posted: Sat Jan 31, 2004 10:20 pm
what does your credit score need to be to get a land home deal if you already own the land and have 15-20,000 in equity in it
joe
joe
Credit score is only 1 item used in determining if a home will get financed..
Income..equity..individual credit items...liens..collections..judgements all come into play..
FHA does not used credit scores at all...Equity requirement is low and rates competitive..But they will not allow any 30 day lates in the last 12 months and collections, liens and judgments will have to be paid or at least payment agreements will have to be in place..Generally those with credit scores below 550 will have too many complications to get the deal done..
Some lenders have a minimum score requirment..usually 640..some 580...but then that only means they will process at the application and check the credit..
There are investors who could care less about credit background with enough equity..Even they must worry about tax liens and judgments which would have a prior claim on your assets to theirs..In some cases these guys can have very high rates and costs..
I have a very close friend who has a 710 FICO score that cannot buy a home at all because of older (8 years old)..large tax liens..Until they expire (10 years) they are stuck..