Need help on getting a loan and advice asap

shablees · Joined: 26 Aug 2005 Posts: 4

Hello,
I am new to this board .
I need some feedback on our chances oF getting approved for a loan.
Actually my husband as I know I could not get approved as I am repairing my credit report as I have many negatives from the past and know I need to clear up before trying to get a loan.
Now me and my husband stumbled across this nice home its a manufactured home with a large beautiful propertyin a very nice area we wanted to do a lease option as we know our situation as far as credit and feel it would of been the best thing until we had everything cleared up and scores up, debts paid but the real estate agent that has the house listed pretty much messed up our chances so the buyers wont consider lease option unless we had $20,000 upfront .
I still would like to at least try and get it conventionally actually my husband as his credit is not as bad as mine as he pretty much always paid cash for things and for the past two years is when he has been establishing credit now last year is when he ran into some problems because of a car accident he had which pretty much put him in a position where he was late on some bills due to being out from work recooperating.
He`s an owner operator for a taxi company . Averages $3,800-$4,100 a month
Anyway the only thing on his report is 2 credit cards one is charged off which he wants to pay in full the balance and the other is closed but in good standing still not charged off but he`s making payments on but will also pay off nevertheless it does not look good on his report to have that one charged off, he had a small laon for a car and just late 1 time last year when this happenned to him but thats already paid in full, He has an existing loan that was opened last year and never late so its a positive trade on his report no collections no repos,no bankruptcies I pulled up his report from equifax last week and score is 486 kinda low.
His income would be stated as he is an independent driver.
I just would like to know if there is still hope for approval as we really would like to get this home before is gone and I been looking around and shopping and reading to get better informed on options before we choose and actually get preapproved and running his credit as we dont want a bunch of inquiries as this would hurt his score even more.
This would be first time buying a home.
If anyone has answers as to possibilities of obtaining a loan with not too much in down payment any ideas on srtucturing a loan he can get approved for please please respond asap if you need anymore information email but only if you feel he can get a loan with this score and circumstances that had happenned last year that caused the negatives on his report.
Thanks in advance

shablees · Joined: 26 Aug 2005 Posts: 4

Oh I also forgot to mention the asking price of the home is $175,000 although we plan to offer less if approved

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Well I'm going to be straight up and honest with you, because that's how I prefer to do business.

A score of 486 is below where most lenders are even going to consider a loan. 500 generally is the minimum. Even at a score of 500, you're looking at 20-25% down payment requirement.

My recommendation is to get your and your husbands credit issues resolved. Get 12-24 months of solid history under your belt and pay off those items and you'll be in a much better position to purchase a house in not too long of a time period.

shablees · Joined: 26 Aug 2005 Posts: 4

Thanks for responding I apprecaite the feedback