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Credit Scores
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If you have a poor credit history, but you'd still like to get a loan, PWC has many Alt-A and subprime lenders who pick up the A-paper fallout. We have lenders who will do a loan with credit scores under a 500! It's hard to believe but it is true. Normally the LTV or loan to value you receive won't be much above 65% of your market value. If you're over a 500 middle score of the three main credit repositories, you'd be surprised to find out that it's not that hard to get up to 95% of the market value or purchase price. |
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Most lenders will take your middle credit score for qualifying and pricing purposes. Some A lenders want to see a minimum of a 620 in order to get an A-paper loan. This is not the case at all A-lenders, and the thing to do is to have your loan run through automated underwriting via FNMA (Federal National Mortgage Assocation), also known as Fannie Mae or FHLMC Freddie Mac. This entails having a broker upload your file through the desktop underwriter (FNMA) or the Loan Prospector (FHLMC). If the loan meets investor guidelines, it can be sold to them after funding and the lender is ok making the loan. |
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Factors that influence your credit scores include many things. A few of them include the proportation of your outstanding balance to your available credit. Your payment history (i.e. # of 30, 60, 90 dys late on the accout). Other derogatory factors include bankruptcies and foreclosures and how long ago they were. Generally, as something bad gets farther and farther away, it has less of an effect on your credit scores. Normally after something like this, it's always a good idea to establish some new tradelines like secured credit cards, (Capital One, etc.) to reestablish a track record of on time payments. |
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Things that can help to improve your credit scores include paying off accounts, and not having your credit pulled to many times. I've seen folks do this repeatedly over a short perioed of time and it can really blow it form them in terms of qualifying for a good loan. Try to never let collection accounts for silly bills get on your credit. These may include parking tickets, utility bills, phone bills, to name a few.
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