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I am not looking for one of those crazy subprime arm loans from 6 tears ago.

I am looking for a fixed rate subprime mortgage in So Calif that will approve me and my wife with an annual income of $ 30k and with 15k of credit card debt
And a credit score of 651 for me and 610 for my wife.
With a foreclosure 2 years ago and a BK on my wife’s credit also 2 years ago.
And for a home price of $ 50k to $ 100k

To Ryan M,
If I am in a potion to pay $ 800 in rent then why am I not in a position to pay a $ 600 mortgage?

7 Thoughts on Are Subprime Mortgages Still Available?
  1. Reply
    February 7, 2014 at 7:52 am

    Thank God…no, they are no longer available.

  2. Reply
    Ryan M
    February 7, 2014 at 8:38 am

    With a recent foreclosure AND BK….your chances are zero. Try again in a few years. Since your CC debt is HALF your annual income…you are in absolutely no position to own a home.

    Very simple…..RENT is not DEBT. There is no RISK to the lender with rent. With RENT, you are not using someone else’s money. With rent, there are no maintenance and property taxes. Also, with $ 15k in credit card debt on only a $ 30k salary means that you already cannot live within your means. Lenders just do not lend out to you people anymore. Obtaining a mortgage is a privilege, not a right. You don’t have the credit score, income, or history to be in ANY position to apply for a mortgage. Do you even have a 20% down payment? Or were you hoping that you can buy a home with bad credit AND no/low down payment as well??? Also, being a lifelong So Cal resident…..what scumbag city in the middle of no where has houses for $ 50-100k??? You can’t even buy a bathroom in my neighborhood for that little money.

  3. Reply
    Angry Bird
    February 7, 2014 at 8:52 am

    Too much debt on your salary.
    Make a goal to pay off those credit cards.
    After you pay them off, use one for food and one for gas and pay in full each month.

    There is an organization out there – non profit. No cost to you.
    They can teach you how to set up a plan to pay off those credit cards.
    National Foundation for Credit Counseling
    You call the 800 number and make an appointment at a local office near you.

  4. Reply
    February 7, 2014 at 9:37 am

    Sorry Len, But with your finances, your financial situation, the foreclosure & your VERY LOW credit scores, you won’t qualify for anything. The ability to pay rent is one thing. Qualifying for a morhage is another. Especially now-a-days. Sorry.

  5. Reply
    February 7, 2014 at 10:07 am

    Sub-prime mortgages are still available. You might find them by googling Sub-prime mortgages.

    With your credit scores you might would want to apply for and get pre-approved for a FHA mortgage loan. You would need pay stubs and W-2 forms for 2 years as well as 2 years of federal income tax forms. There would be other items necessary, however, your loan officer will inform you of these items.

    You might be stretching it with the amount of house you would be approved to buy, based on your debt of $ 15,000 in credit cards

    I am not sure you would find a property for sale for as little as $ 50,000 in California unless it is in an outlying area and not in a city such as Los Angeles and surrounding area

    Your bankruptcy and foreclosure being 2 years old or over that would not present a problem as the guidelines are that these two items must be at least 24 months old or older.

    I hope this has been of some benefit to you, good luck.

    “FIGHT ON”

  6. Reply
    February 7, 2014 at 10:55 am

    If they are available, you would need stellar credit to have a prayer of obtaining one. With a bankruptcy and half your income in credit card debt, your credit is not good enough to get a mortgage. You hold too much debt to reasonably obtain a loan for a house. While you may be in a position to pay $ 800 in rent, you are not in a position to take on $ 100k in debt. You need to pay down your credit card debt and try again in a few years.

  7. Reply
    February 7, 2014 at 11:47 am

    Len – Yes, they are available but they are hard to find and the rates are not good at all.

    The RE market is not going anywhere in the near future. I’m thinking a better strategy is for you guys to lay low for a little while, get that credit fixed up and the bankruptcy and foreclosure out of the picture, debts paid off or way down, and a nice cash reserve saved up for down payment, closing costs, and an emergency cash fund. Rent during this time and do all you can to get this all squared away.

    By the time you are ready, you won’t have to go sub-prime. Home prices will not have skyrocketed, and even if prime interest rates have crept up a little they will be nowhere near where the sub-prime rates are.

    Renting also gives you flexibility in case you find a better paying job somewhere else; you don’t have to sell in a slow market just to move.

    Good luck.

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