Can owning a boat or a business be considered collateral in the absence of good credit for a mortgage?

Kyle, I can help you with this. While there is no substitute for good credit, yours i not that bad at 635 and would not disqualify you from obtaining a mortgage with us. Please give me a call at 621-3247 in Daphne. Tommy Peoples, Southwest Funding

Kyle, the credit you have now is lendable, there are the other 2 factors to obtain a home loan that the underwrtier must review, income on your schedule C or K1 filings and the ability of the down payment, but your credit of a 635 is fine for FHA, VA and Conventional.

The boat is an asset and cannot be used as collateral.

Hey Kyle... The good news is that 635 credit score is good enough to get FHA financing in most states. Much more information will be needed to fully qualify you, but your credit score, although low, is high enough for select lenders. The bigger issues are.. did you have a foreclosure, deed in lieu, or short sale... have you filed BK... how long have you had the business... Lenders are not too concerned about gross income for a business.. how much of that is your money at the end of they year.. verified by tax returns, is what is important. The money you show as your income from the business is what is used to determine your debt to income ratios. Assets are noted on the application (Like your boat), but have very little weight in determining your eligibility. Contact a local mortgage broker, not a bank and apply with them.. they can match your particular scenario to the right lender and ultimately give you the ability to purchase a home. WilliamAcres.com