how bad can your credit be and get a home loan?

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How do you go about getting a loan for a home when your credit is really bad? I mean really bad, like 480 to 500. I have no money for a down payment, but my family qualifies for all kinds of free money programs. I just need a lender who will give me a regular mortgage loan. Anyone know what I can do?

8 Comments
  1. Reply
    godged
    January 28, 2011 at 5:01 pm

    Fix your credit.

    If you find a lender to do this loan, the terms will be ridiculous. And 100% loans are all but extinct.

    Sorry, but you are going to have to do this the old fashioned way. Save money, pay your bills on time and then go forward.

  2. Reply
    Pengy
    January 28, 2011 at 5:15 pm

    In todays market good luck. If you had 3% down and closing you would have a chance with FHA as it stands no No one will take that big of a risk. And if by chance some loan shark does, with the interest rate you will be in worse shape a year or two from now than you are presently in. Work on cleaning up your credit first

  3. Reply
    ifyouwantwhatwehave
    January 28, 2011 at 5:44 pm

    I agree. I tried to get a small home loan ($ 50,000!) and my credit score is around 550 and they said NO WAY!! I tried like 3 different places and they all said the same thing: NO!

  4. Reply
    Califrich
    January 28, 2011 at 6:18 pm

    At 480 or 500, nobody a a Mafia loan shark would loan you any money, and the collateral would be an arm and a leg! About all you can do is work on repairing your credit by regularly paying your bills, etc., over the next five or more years, and then apply for a mortgage loan after you have at least a 10% down payment saved up.

  5. Reply
    paobay
    January 28, 2011 at 6:47 pm

    DO NOT BUY A HOUSE, even when you get the loan, the interest rate will be so high, and you can’t make the payment, they will take your house away. Why bother to make your credit worse.

  6. Reply
    michiganted
    January 28, 2011 at 7:05 pm

    I am closing one this week with 100% financing at a 536 middle score. It’s called an Expanded Approval Level III through Washington Mutual and Fannie Mae. It’s the lowest 100% financing that I’ve ever closed, and my customer’s PMI is oppressive – but it’s getting done.

  7. Reply
    Carolinahomerates.com
    January 28, 2011 at 7:15 pm

    350 is the lowest score you can do with FHA mortgages.

    YOU CANT HAVE ANY CREDIT LATES IN THE LAST 12 MONTHS….and you will need 2.25% down payment

  8. Reply
    Gary H
    January 28, 2011 at 7:17 pm

    Don’t lose hope if you’re looking to buy a home. There are so many different ways to fund a home now, just about anyone with any kind of credit can get into a home, regardless of credit situation.

    Of course, some will cost you more money in the long run, but a home it’s still one of the best investments that you can make, so, in many cases, it’s worth it, especially for the first year of ownership.

    You should shop around, and ask different lenders what kind of programs they have, and if they can help. Try to find a lender that specializes in bad credit mortgages. You can find some bad credit mortgage lenders listed on this page on and off:

    http://www.axalda.info/bad-credit-mortgage.html

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