Home Buyers

Have you been declined for credit due to late payments, recent bankruptcy, repossessions, bad debt, judgments and liens? Are banks and lenders telling you to wait to clean up your credit, pay off those bills and satisfy your outstanding debt? You wonder is there any way to get into a house with your credit issues?

First, we have funding sources who will work with people who have imperfect credit. If you have a FICO (Fair Isaac Credit score) below 620, you may soon discover that banks and mortgage brokers prefer to work with prospects with credit scores of 620 and above.

Bankers are not in a position to risk funds with subprime candidates. If you have a FICO score below 620, you are considered subprime. As a result, you will pay more in interest for borrowing money. This is a penalty that one pays as a result of having poor credit.  

What is poor credit?

It is anyone, who has B, C and D credit. 

"A" credit is someone who has never been late on a payment.

"B" credit is someone who has one or two 30-day late payments.

"C" credit is someone who has several 30-day and some 60-day late payments.

"D" credit is someone who has had many 60-day late payments

Do we offer grants or special loans to pay closing costs?

Not at this time.

Will we finance someone 100% no money down?

We prefer to work with people, who have between 8% to 10% deposit money toward the purchase of a home and 30% or more for commercial properties. Money that is borrowed is not counted as money down. The amount of down payment will depend on one's credit scores.

Why do we prefer a deposit of more than 5%?

Since we are working with private funding, our investors need to be comfortable with a prospect, who has a substantial deposit, despite a low credit score.

Banks may have programs that require 5% or less for first time home buyers. The difference is that banks, for the most part, must follow strict guidelines, in order to sell them to Fannie Mae or Freddie Mac. Few banks will keep loans in their porfolio.

Since private investors do not follow and are not required to follow such strict guidelines, there can be some flexibility with structuring the terms. To obtain additional funds, private investors will, at some point, sell these mortgages to other investors.

So, how does this process work?

First, you call us describing your situation. We will ask you a few questions, including the amount of your down payment.

Second, we will pull credit to determine if you have the income and that you have no outstanding liens, judgments, bankrupticies or repossesions, which would prevent us from financing you.

Third, if it appears that we can finance you, the next step will involve you finding a home advertised as a For Sale by Owner or one listed by a realtor in the Washington, DC Metro area.

Next contact us with the location of the property, the phone number and the owner's name. When we call the property owner, we will explain how the process works. If you are working with a real estate broker/agent, we will explain the details. Be advised that we are not real estate brokers/agents and do not represent you in any real estate transaction.

If you are not prepared to go this far, you can pull your own credit report. By doing this, you will know your credit history and what is being reported to and recorded by credit bureaus.

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