Credit, Mortgages and Interest Rates?

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I have really bad credit (under 500 I think, cause I have about $ 1,700 on all my credit reports.) Can I still get a mortgage loan from just about anyone as long as I can pay 30% down? What about 20% down? What would my interest rate be?

I asked this somewhere else, but I didn’t get a straight answer. So, here is more details. The $ 1,700 on my credit report is not credit card debt. Things like medical bills, some bad checks, library and old cable and gas bills. So, it’s not like I can just get a credit card and start making payments. When I move, I am not moving from a house to an apartment and then back to another house. Just to wait for my credit score to get better. I’ll refinance later when my credit is better.

Based on the fact that I am going to do this no matter what I just want to know what my interest rate would be.

1 Comment
  1. Reply
    Brad L
    May 3, 2011 at 5:46 am

    If you’ve always been on time with your current mortgage…and you can find a bank that does manual underwriting instead of pure FICO lending (Dave Ramsey always shills on this for Churchhill Mortgage – http://www.churchhillmortgage.com/) , and you can squeeze 30% on the new house from the old house…Then you might have a shot at a reasonable interest rate.

    A manual underwriter may advise you to put 20% or 25% down and take the rest to clean up the $ 1700. They may also advise you to get a loan from a family member or against a car or something to clean that $ 1700 up before they’ll issue you the loan. But get the conversation started with a lender that you like.

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