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Can I only lend with a hard money loan?

I currently have very bad credit (620) and I am looking to finance a condo worth around 135k. I have enough for a 20% down payment, but I believe my credit is not enough to get a mortgage. Is hard money my only option? by gilber_136_707 from Cheyenne, Wyoming. Nov 29th 2011 Reply


Brian Allen (ballen)
#43 ranked lender in Maryland - 193 contributions

I would like to help review your situation and see if we can increase that score or provide a timeline to reaching the appropriate credit score. Other factors such as cash down and other history may help you qualify. I can be reached at ballen@accessnational.com or 240-750-8315.

Nov 29th 2011
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Ron Pippin (RonPippin)
#26 ranked lender in Utah - 158 contributions

I provide financing in Wyoming all the time( my wife is from Lander). There is a program called USDA that will allow for no money down financing. They really like to see a 640 score but can finance down to 620 provided you meet certain criteria. With 20% down there are several options. Conventional may be one but your rate will be higher with that score. FHA may be nother and it only requires 3.5% down. So really, you may have some fairly good options. Ron Pippin toll free 855-823-2781

Nov 29th 2011
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Marcus Buchanan (mbuchanan)
#313 ranked lender in California - 28 contributions

Greetings, quick question for you. Have you tried to have your credit cleaned up or even looked at. This is my two cents for you, reach out to your local lender and have them help you analyze your credit and see what needs to be done in order to boost the score. Its better to tackle the whole credit situation before getting into a mortgage and the last thing your going to want to do is clean your credit afterwards. This may not be the exact situation however i hope this helps. Clean credit first then do mortgage, you have plenty of time to buy a home............

Nov 29th 2011
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Rudi Hofmann (CaPortfolioLoans)
#282 ranked lender in California - 380 contributions

There are lenders that originate FHA loans that can help borrowers with even lower credit scores than yours. You do not need hard money. ... Happy funding, Rudi

Nov 29th 2011
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

There are traditional lenders that will lend to 620 borrowers. No there are other guidelines that are looked at other than credit score, so we would need your complete scenario to determine if you can get approved. Another question is in regards to the condo. FHA and Conventional financing have guidelines in place to determine the eligibility of the condo complex. They have to have a certain percentage of owners, have sufficient reserves, etc, etc, etc... best advise I can give you is to contact a local mortgage broker, not a bank and apply with them. They have a number of different lenders they deal with and can find the right match for your particular situation. WilliamAcres.com

Nov 30th 2011
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Shon Atabaki (ShonAtabaki)
#49 ranked lender in Washington - 95 contributions

Rest assured that 620 is not a "very bad" credit score. You will easily be able to finance your purchase with a 20% down payment without having to pursue a hard money loan. Best of luck!

Nov 30th 2011
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