Can I get a Mortgage with bad credit?

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Me and My husbands credit scores are around 540ish, We have really bad credit. The only thing we havent had is a foreclosure or bankruptcy. The only good things on our credit is a small credit card and a car loan. We found the house of our dreams for 110000, the house appraised for 123000, so we would already have some equity. would we be able to get a loan with such bad credit and no money down?
Also, I have been in touch with the real estate agent about this house and we are meeting with her tomorro to sign the papers to make an offer. We know the people that are selling the house so they have already accepted the offer. I know just because our offer was accepted it doesnt mean financing is guarunteed but the agent from remax said she would do whatever to try to get us financed. I just dont want to get my hopes up for nothing.

My family and I fell on hard times when my husband was diagnosed with a un removable brain tumor (though not cancer) and lost his job in 2003. Technically he is unable to work due to problems associated with the tumor, but disability says that he’s not so bad off he can’t work. He’s tried to find many jobs and even applied to places like burger king, walmart and mcdonalds and was unable to be hired. I worked two jobs but couldn’t pay the $ 1000 mortgage and so we sold the house we had for less than it was worth to a company who kept it from being in foreclosure and on our credit. Still we were paying off credit card bills through Credit consolidation and I couldn’t pay them anymore. We have around $ 10k in cc debt following us around at the moment. A run down trailer was given to us and we have been here for the past three years but it is falling apart and we can’t stay here due to sanitary issues. I have two small little girls and they are begging to stay with grandparents to get out of this place. Simple fact is we must move! My husband and I have started our own businesses and make enough to pay a small mortgage fee so we are looking for a house in KS or MO for around 40,000.00 or less that needs some fixing up. I don’t know of a place that will help us with our credit as horrible as it is.
Any suggestions for places to help us get a small home loan on horrible credit is more than appreciated.

9 Comments
  1. Reply
    knightrunner13
    February 3, 2011 at 6:18 pm

    Yes you can but it will cost you alot in Interest and fees . Also it depends on what caused the bad credit plus how bad it is .

  2. Reply
    frank b
    February 3, 2011 at 6:41 pm

    there is a chance that you could but first go talk to diffrent lenders since your scores are so low look at small name lenders i recomend first horizon they have a great staff and work hard atleast i know they did for me then talk to a realitor i recommend zipreality look them up on line they also are great and will do their best. best of luck to you

  3. Reply
    Monica B
    February 3, 2011 at 7:18 pm

    Actually, with the sub-prime market falling apart recently I don’t think it is possible for anyone with a credit score lower than like 640 to get any type of a mortgage with no money down – as of like last week 🙁 Often times real estate agents will tell you they ‘will do whatever they can’ to get you financed. In reality, they are just trying to keep your business and have ABSOLUTELY NOTHING to do with loan financing. Realtors simply cannot keep up with all of the programs lenders have going on at any given time – these actually change quite frequently – they are too busy helping you to buy/sell houses to do the necessary research. Sometimes they may refer you to a loan company or brokerage, but it’s not because this is necessarily the best place to go, it’s just the place where they have a business relationship and they refer all of their clients here.

    My husband is a mortgage broker, though and has access to dozens of different lenders. PLEASE email him at rlb@gfsdirect.com. Tell him I referred you, and he can give you a no-pressure, no-strings-attached evaluation of where you stand.

    Good luck!

  4. Reply
    smarttrader101
    February 3, 2011 at 7:33 pm

    Your credit score plays a heavy role on the interest rate you will receive for your new mortgage loan or refinancing from your lender. One major factor is how many late payments (30 days or more, 60 days or more is even worse) are on your credit report. Late payments of less than 30 days do not show up.

    The second major factor is your combined credit rating from all 3 credit agencies. If your credit score is 620 or above you will probably be approved for a conforming loan
    with a lower interest rate. If your credit score is below 620 you will probably be approved for a non conforming loan with a higher interest rate. Remember the lower the credit rating the higher your interest rate will be. Some lenders accept credit ratings down into the lower 500’s.

    A third major factor is if you claimed bankruptcy in the last 2 years. Most lenders require that your bankruptcy has been discharged for at least one year.

    Remember, know your credit score before you apply for a home mortgage loan. Knowing this will help you know how much and at what rate you will qualify for. If you have a credit score above 620 I would recommend applying directly through a bank than a mortgage broker so you will not get charged brokerage fees and a bank will most likely give you the best rate.

  5. Reply
    abby fth
    February 3, 2011 at 8:11 pm

    It is important for you to be extremely careful, know why certain debt settlement agencies suggest this and why you should avoid refinancing to pay credit card debt. Within this article you’ll find the reasons why you should consider very carefully refinancing as a debt elimination option and a brief explanation of which paths are better on your way to financial freedom with long lasting results as opposed to those you would obtain by exchanging your credit card unsecured debt with a secured low interest refinance home loan.

    Risks Of Working With Certain Debt Settlement Agencies

    There are many debt settlement agencies that come from the heart of credit card issuing companies or financial institutions. These agencies where created so as to let credit card companies to recover their money and thus, even if they’ll provide you with solutions to eliminate your credit card debt, that solutions may not be in your best interest.

    Many of these companies would suggest you to take a refinance home loan and use your home equity to repay your credit card debt. That may seem a good solution and in some cases, it can be. However, it shouldn’t be your preference, and most certainly, a debt settlement agency committed to solving your debt problems shouldn’t suggest it as your first choice. Read more about it at: http://www.credit-card-gallery.com/article/149,Credit_Card_Debt_Settlement_Avoid_Refinancing!

  6. Reply
    gabriel jones
    February 3, 2011 at 8:32 pm

    Bad credit is one of the worst problems to have… however there exists a solution.

    I will hereby talk from my personal experience.

    I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
    if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,

    a good place to start in my humble opinion is a straight to the point ebook with question and answer I found :

    http://umgarticles.atspace.com/debt-consolidation.htm

    if it helps kindly remember me in your voting!.. cheers!

  7. Reply
    Anjell
    February 3, 2011 at 8:57 pm

    The more you can put down the better your chances of getting some kind of loan will be. Mind you because of your credit you’ll still be hit with high interest rates. That’s the least of it, the bigger problem is that you have existing credit card debt and if you can’t pay off the $ 10K you currently owe, lenders will be reluctant to give you more. I’m sure you can understand this.

    Until you fix your credit and can save for a down payment, don’t buy a house just yet…rent. Find a decent place for you and your girls until things get better.

    Try look on http://www.realtor.com for both homes and rentals.

  8. Reply
    billy bad ass
    February 3, 2011 at 9:53 pm

    You may be a good candidate for one of the federal mortgage programs. Start by contacting one of the HUD-funded housing counseling agencies that can help you sort through your options. Also, contact your local government to see if there are any lochome-buyingying programs that might work for you. Look in the blue pages of your phone directory for your local office of housing and community development or, if you can’t find it, contact your mayor’s office or your county executive’s office.

    Also, since all of your debt is credit card debt, I would drop the credit counseling program… that could take you 15 years to complete and they only negotiate down the interest and not the principle balance. I recommend debt settlement because it is the shortest term program (12-48 months) and your payments should go down even more. Also, if you are unable to make a payment or will be late taren’tre’nt any penalties… the term just extends the amount of time late. You can learn more about debt settlement through the resource below.

  9. Reply
    autoprt
    February 3, 2011 at 10:44 pm

    I know of a company that approves 50-55 percent of the applicants.
    They don’t charge upfront fees either:

    contact: http://www.jensden.com/g.o/autoprt

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