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How to get a High Risk Personal Loans?

How to get a good mortgage with a high net worth and a low-ish credit score?

  • Which financial institutions look at the whole picture rather than just a credit score when issuing a mortgage? I have a pretty average credit score - VantageScore 760 (Grade C, higher than 43% of the population), but a high income ($150k/year), no debt whatsoever, and $1.2 million dollars in the bank. Sure I present much less credit risk than someone with a perfect score, $80k/year salary, two car loans and a negative net worth. And yet, based on what I was told and online estimations, this person would get a much better deal and a lower APR than me. There's absolutely nothing bad on my credit report. The primary reasons cited for the low score are short credit history (<10 years in the US), lack of installment loans (obviously) and high credit card balances. The only balances I have on credit cards are those I pay off completely every month and those that have promotional 0% APR. Are there organisations that could look at the overall financial picture? With my income and net worth I basically present zero risk - the mortgage amount could end up being lower than the cash I have. A slight complication is that I'm planning to leave my current job and start a company (externally funded) - but I can document high income potential (I left a $200k/year paying job recently). Should I be able to get a good deal and how? Update: I'm looking for standard, low or even zero downpayment as long as it doesn't increase the APR too much (the money I have is invested in a diversified portfolio and I plan to pay off the mortgage from salary, dividends or proceeds from selling securities as a last resort).

  • Answer:

    Vantage scores up to 990 so your 760 can be somewhat deceptive.  You may actually have a less than stellar FICO score which is what your lender is going to use.  Shane's advice is good about getting your FICO score.  You'll pay for it but it is probably worthwhile in order to accurately price your mortgage without having to have your credit pulled by a lender.  You can also get a free Experian National Equivalency score which has a more similar range to FICO on our site, Credit Sesame.  In terms of your situation and loan request, you might want to check the company where you hold your investments.  Or you might want to consider moving your investments to a company that will allow you to leverage those assets to help with your mortgage.  I know that Merrill Lynch Wealth Management http://www.merrillhomeloans.com/mlhl/pages/optional-features.aspx offers mortgages and they will basically allow you to cross collateralize you house and investment account.  This might allow you to get better terms on your mortgage.  They offer things like 100% financing without mortgage insurance because you are putting up your investment account as collateral.  I'm not 100% positive but I'm sure it could help you get around credit score related issues as well. Good luck.

Tony Wahl at Quora Visit the source

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You may be surprised to learn that a 760 Vantage score isn't bad when it comes to mortgage lending - it's still considered in the great/excellent credit category.  Vantage scores are not what the mortgage lending industry uses, we use FICO scores.  Other than from a mortgage loan officer, you can get your FICO scores at the website http://www.myfico.com (only Equifax & TransUnion though, as Experian no longer allows consumers to get their FICO scores directly on their own).  In mortgage lending a 740 middle (median) FICO score is considered excellent and qualifies for the best terms.  However even a 620 score can qualify for conventional financing, and is what most lenders minimum credit score requirements are today. However to answer your question about lenders who will qualify someone based on their assets & income rather than credit score are usually private or hard money lenders at with terms less attractive than from traditional banks.  There are also community banks that are willing to lend based on unconventional guidelines, community banks which would retain ownership of the loans rather than selling them on the secondary market (which means they don't need to conform to someone else's guidelines).

Shane Milne

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