Need help getting a loan

Ryan1984 · Joined: 20 Feb 2007 Posts: 8

Hello everyone,

I know that the answer to this is just going to be "keep building your credit and try in a year" but I'm being hopeful

I have absolutely no credit history. Well, until last month anyway. I got my first credit car a month and a half ago, and it has showed up on my report (got one of those free annual report, but no score). Anyway, that's the extent of my credit history. My fiance has terrible history. We're guessing 500 if not lower. Multiple charge off's (About 7, all from 2 1/2 years ago...bad time) Only thing going for him is he's kept up to date on car loan.

Anyway, he makes most of the money, but I don't want to put him on an app. because of his credit.

First I guess, and possibility I could get a loan? I don't have any cosigner.

We're not looking for much....At all. We just want to get a mobile home in a park. Maybe $15-20K at the most. We have a combined income of about 3k per month, only consistent payment besides rent (which would go away ) is his car payment, $395/month. and my credit card now, carrying a balance of $100 with a limit of $300.

Are there any lenders out there who would take the risk?
I don't see it as that big of a risk, We have the income to pay it, and we have excellent references.

Anyway, thanks for your help.

chow · Posted: Tue Feb 20, 2007 10:22 am Post subject:

Loans on leased land manufactured homes are not considered mortgages. Most of the companies that lend on that low of a loan amount are gong to be finance companies.

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

If you can find a property within your price range that is taxed as real estate (i.e. not a mobile home, but a manufactured would be fine) your credit history could be supported through alternative lines like car insurance, cell phone, or other items you've paid on for 12 months.

As Chow mentioned though, if it's a trailer in a park, it's not 'real estate' so it wouldn't fit most companies requirements as far as a mortgage.

Ryan1984 · Joined: 20 Feb 2007 Posts: 8

Thankyou for your replies.

I never considered things such as utility bills, insurance, etc. would help in getting a loan.

Anyway, instead of a mortgage, what type of loan should I be looking for? I think it's a little large for a personal loan, so I'm sort of at a loss..

chow · Posted: Thu Feb 22, 2007 10:13 am Post subject:

You're going to get an installment loan. It's just like car loan. HUD has a program called Title One. If you follow my link, and select the "Title One" box and put in your state, you will get a list of people who are approved for the title one programs. The loans are not insured, and they are not the same rates and terms as mortgages. This loan requires you to own the land, but if they are signed up as a lender for this program, then they should be able point you to the right direction for financing one in a park.

http://www.hud.gov/ll/code/llplcrit.html

http://www.hud.gov/offices/hsg/sfh/title/repair.cfm

I know of some lenders that do this, but I wouldn't send my worst enemy to get a loan from them-let alone anyone who visits our semi friendly little spot on the internet. Be careful of any company who requires that you hold the insurance for the house with them too. Once they get their hands on you- :twisted:

If you run into those lenders, then you will know who I'm talking about. Run, don't ask questions, just RUN.

DallasLoanGuy · Joined: 26 Sep 2006 Posts: 169 Location: Dallas, TX

it is basically like a car loan.

local bank/credit union would be a good place to start. and then maybe go looking around at new mobile homes and find out who does their financing.

Ryan1984 · Joined: 20 Feb 2007 Posts: 8

Thanks everyone.

I just checked my fiances credit report on Freecreditreport.com She has that experian Plus score of 681, but I know the is pretty much irrelevant, right?

Obviously, it's too early to get a FICO score for her yet, so do you think there is any possibility we could get a loan of the type you're suggesting without using a co-signer, Just in her name? Better yet, do you know any on-line that I should check out? I'm thinking wait until June/July when she has a FICO score, build her credit some more, and try then. We just got her a capital one card, so she now has two credit cards. Hopefully if we use those and pay them off regularly, she should be in decent shape in 4 or 5 months.

What do you think?

m2c · Joined: 03 Aug 2005 Posts: 937

I really believe you are not a shill for that profit-making site you mentioned. I suspect the site was trying to ride the new reports of "free credit reports not mandatory" and may be a bit deceptive. The site established by the Fair Credit Report Act is www.annualcreditreport.com and they are truly not trying to sell you anything …except for FICO score of $5.00.

Watch you automatic enrollment in the site you referenced.

Ryan1984 · Joined: 20 Feb 2007 Posts: 8

.....What?

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

What he's saying is that the freecreditreport.com is not free. There is a membership attached to it, so keep that in mind and watch out for it.

Annualcreditreport.com however was established as part of the Fair Credit Reporting Act and allows you to check your credit 1x per year for free. It doesn't tell you your score, but does tell you the most important information.

Ryan1984 · Joined: 20 Feb 2007 Posts: 8

Ok, I know the fees associated with freecreditreport.com. However, I recieved the report and cancelled the account, which made it free for me.

So...I need some opinions on my latest plan. I'm not going to use my credit at all. My credit is too far gone to be saved at all at this point. I do not have, or rather want to dedicate the finances needed to correct it, as I want to put those finances into buying a manufactured home. I have a fiance and a child on the way, and really want to get out of an apartment and into a home.

I am a humble person. I was raised by a lower middle class family. We didn't have much, but always enough to get by. When I was younger as you probably expected, I never thought or wanted to live in a "trailer park" However, as I've gotten a little older and a little more mature I've realized that you do what you can, and what is best for the ones closest to you. I do not want my child growing up in an apartment complex. I want somewhat of a yard. His/her own bedroom. etc. Up here, where I am in Maine, there are actually a lot of nice smaller parks where the lots are decent sized and the homes are not packed together like they were where I grew up in Massachusetts. They actually look like subdivisions.

Anyway, I've gotten way off topic. What I want to get across is that I've screwed up my credit really bad. It's sub 500. Mostly from a bunch of credit cards I had when I was 18 (I'm 23 now) that were charged off after I lost my job in early 2004, so the debts were never really substantial. 500 here, 500 there. But there are 9 accounts. I also have delinquent student loans, etc. So I'm not looking for advise on how to fix my credit.

What I have said that we're working on is building my fiances credit. I feel that the only way to get done what we want is to do it this way. I am looking for info first on whether it would be possible to get a loan in her name, using my income as part of the total household income, but without putting my name on the application?

Second, we are looking at purchasing a new mobile home, in the 40K range. So far, we have 3k to put down on it. Using her info for the application, we could show an income of $2700/month. Is this enough for a loan of that size? We are thinking that we would want a 20 year loan, to keep the payments under $500/month. Because we have to pay that along with the lot fee (going rate around $200/month locally)

And finally, I really need some advice on the possibility of us obtaining a loan for her with the limited history she has. Like I've said, she has had no credit up until two months ago. She now has two credit cards, one which has been reporting for two months, one which won't start reporting until next month. We are using them and paying them off. How long do you think we should wait before trying to obtain a loan? Obviously, we're going to need some credit history, I just don't know how long it would need to be.

Also, if anyone could point us in the direction of some lenders (online) that you think would be willing to do a loan for us, please let me know.

Thankyou

chow · Posted: Sun Feb 25, 2007 12:58 am Post subject:

If you don't mind getting your hands dirty, there is always buy a home a rehab it- as you rebuild your credit. Our cost us a whole $25,000. It is more than one acre and it used to be 890 sq ft. The payments were about a whopping $300 amonth with taxes and insurance.

Our credit wasn't ever bad. My husband just wanted to play Bob Villa. This project is over now and it's a very nice place.

If I told you what my first impression of this lot was, let alone the house-no one would believe me.

If there is a will there is a way. How strong is your will?

I've met more than a few people at the door with dry wall dust in my hair. My father in law calls me "mud daupper." :wink:

Imitation is the most sincere form of flattery. My husband saw some of that today at his son's house.

Ryan1984 · Joined: 20 Feb 2007 Posts: 8

Chow, thanks for the reply.

My problem isn't really what I can afford vs. what I want, but rather, what I can get at all with our credit situation.

chow · Posted: Sun Feb 25, 2007 2:57 am Post subject:

Follow my link over to answers.hud.gov

So you fell down and scraped your knees up a little-

I might hang out here for a reason :wink:

I'm not in the business of selling loans right now.

I'm in the business of helping people find hope.

Ryan1984 · Joined: 20 Feb 2007 Posts: 8

I think I did a little more than fell down and scraped my knees, but I appreciate the help.

If it were up to me, I would of filed bankruptcy by now. I have a total (with interest) of about $7500 in credit card debt ($4000 originally, without all those charges), roughly $13,000 in student loans that are way way behind, about to go into default, and I still owe $12000 on my car loan. I am paying only on my car loan...for two reasons. Number one, because it is all I can afford to do. Secondly, and more importantly...My father co-signed on the loan, and I refuse to let it fall on him.

The truck I bought I no longer drive. It's been parked for about 6 months now, partly because I have a company car now, the other part because the engine is blown. Hence the reason I can't even sell it to get rid of it.

Like I said, the only way I see myself getting out of this would be to let them repossess it, and file bankruptcy. But, that is not an option. I made some very bad decisions a few years ago, and I realize that.

That is why, we are building my fiance's credit and not trying to repair mine. I think it is beyond repair. But, if you seriously believe it can be salvaged, I am all ears.

Thankyou,
Ryan

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