Is it possible that we can buy a house bad credit?

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We are a family of 4 want to buy their first home. I was a single mother for 8 years and during that time became seriously screwed my credit history and still is. My husband divorced her and I found myself with all of your bills, your credit so screwed. We found the perfect house and enough money for 10% down, after we get our tax refund, but do not know how to go about getting a mortgage. I figured it out, and our mortgage payments would be half of what we currently pay for rent. This would allow us to begin to fix our credit problems, not to mention how absolutely spectacular this would finally a house of our own. Has anyone advice on what to do? Who should we ask? The owners of a house we love is about to try to rent it for five more than what we pay now. I fear that we will not maja.Ma am aware that it is better, before trying to clean up our credit loan no. I also understand much more than renting a house goes to the owner (or should), but we have already made their improvements, etc., our rent. We came from all over the house while searching for a better rent. Does not hurt to dream, I suppose. Thank you for your answers and opinions. Even the toughest villain. Have a nice day.
My husband and I are first time buyers in California. My score is 585, the 608th of his We are looking to spend about $ 125,000, and has established $ 40,000 as a gift for my mother-in-law. He is also willing to co-sign a mortgage, if necessary. What are the chances that we will be able to get a mortgage and what interest do we look? We are currently enrolled in a plan of debt management, which forced us to close all credit accounts. During this process, we had more time, it was reported 60 days later, looking at our situation to creditors. Is there a difference if we were able to pay this debt now, before applying for a mortgage? Our credit card debt totaling approximately $ 14,000, and that our debt is $ 19,000 balance of the car loan. Car payment $ 391 per month and pay $ 597 DMP. Our annual income is about $ 68.000.Palun Help! Plan of debt management before us, we were not late, and much better credit score …. Does it reflect? Or is it strictly based on the score? If the accounts are now standing in GOOS, and now that woud help? I’m sad … my stepmother is a great … He offered to our existing debt credit card zero percent it is to withdraw our credit profile. It would certainly be a part of the loan. The contribution, however, is undoubtedly a gift, and he does not expect repayment.

16 Comments
  1. Reply
    Zork
    February 13, 2011 at 6:25 pm

    Talk to your bank manager.

  2. Reply
    wizjp
    February 13, 2011 at 7:24 pm

    Probably; the time to start fixing credit problems is long before you are ready to buy.

    Will the current owner’s consider a land or contract for deed?

    Put you down payment on the property, make monthly payments for a few years, fix your credit issues with the extra money, then convert to a conventional mortgage and go forward from there?

    Talk to them; if they are interested, hire a good lawyer, draw up a contract for deed and go.

  3. Reply
    Gari
    February 13, 2011 at 8:13 pm

    the drunk husband who is mean to your kids….do you really think someone, anyone would lend you and thatloser even a dime, let alone money for a mortgage…..are youserious?

  4. Reply
    sunshine
    February 13, 2011 at 8:25 pm

    No. There is no mortgage lender willing to give you a loan unless your credit score is 680 or above.
    Read this site and look at the questions from others who bought homes in 2008 and 09 and already lost their homes to foreclosure. There are a lot more expenses to maintaining your own home then renting. First thing to do is get a free credit report at http://annualcreditreport.com
    and clean it up

  5. Reply
    Joe
    February 13, 2011 at 8:39 pm

    God, YES, and do NOT listen to people on here who tell you otherwise. In fact, the very best ways to buy can be by not using credit.

    Go to the free forum at http://www.creonline.com and research creative financing.

  6. Reply
    V
    February 13, 2011 at 9:03 pm

    the best person to talk to is the bank. duh. but these days it’s almost impossible to buy anything without at least a 720 credit score. and if you don’t already have and home equity it’s going to be that much harder. you might be better off putting more down the just 10% but talk to your local bank and see if you can get approved first for a loan.

  7. Reply
    boomn4x42
    February 13, 2011 at 10:02 pm

    It sounds like you still have debt outstanding as you said, “would allow us to begin repairing our credit problems” If you have 10% saved up, the best thing you can do is use that 10% to pay off your existing debt. Once your debt is gone, you can easily rebuild your savings and your credit at the same time.

    Bottom line, 10% and bad credit isn’t going to get you a mortgage….especially if you are still carrying outstanding debt. Focus first on paying off our debt. Focus second on saving for a depost. Focus thrid on repairing your credit report.

  8. Reply
    acermill
    February 13, 2011 at 10:13 pm

    It is simply NOT going to happen until you get BOTH of your credit scores to the 650 range. You MIGHT be considered for a mortgage if you had a downpayment of 50% or more (that mitigates lender loss if you fail to pay). As well, are you figuring in ALL costs for that mortgage payment, including insurance and tax escrows ? There is more to a mortgage payment/home ownership than the base principal and interest amounts.

  9. Reply
    john
    February 13, 2011 at 10:31 pm

    your bank finance manager can answer all your questions and make darn sure you get a fixed rate mortgage, that variable rate will break your back after a couple of years. have a good day.

  10. Reply
    Shredded Cottage Cheese
    February 13, 2011 at 11:25 pm

    the major problem is that your calculations may be WAY off. When you are determining the mortgage payment, what interest rate are you using? If your credit is as hosed as you say it is, then the interest rate will not be the “A” tier rate, but rather something in the sub-prime range, typically 3-5% higher than the advertised rate. This will push up your payment. Some options:

    1. Is there a 1st time buyers program in your community? They typically give higher risk folks a chance.
    2. Would the present owners consider carrying the note? Would they entertain a lease-option?

    keep in mind that just recently Fannie Mae and Freddie Mac, the two government held backers of almost all conventional loans tightened requirements for qualifying for loans in light of all the defaults.

    Also, be VERY careful of any business that offers some pie-in-the-sky answer, guaranteeing to get you some fantastic loan. Lots of these have upfront fees, and when they dont deliver, your $ $ is gone. I’d suggest working with a reputable mortgage lender, not necessarily at a bank, to see if there are any sources of money who will accept a greater risk (remember too that greater risk up front means they expect a bigger return for their investment (= higher interest rate)).

    Good luck.

  11. Reply
    Deeda
    February 14, 2011 at 12:06 am

    I live in TN and anyone with a credit score of 620 and the same job for 2 years can get a FHA loan. Talk to your bank’s mortgage loan agent and she will let you know what you need to do.

  12. Reply
    real estate guy
    February 14, 2011 at 12:28 am

    Talk with a lender. They would be the one that can help. 10% down is good.

  13. Reply
    Honest Chick 2
    February 14, 2011 at 12:48 am

    I don’t think you should be as concerned with the “approval of the loan” as you should be about the interest rate you will get with a bad credit score. That means higher payments per month anyway so. My advice would be to use some of the money to get your balances down or paid off first and make sure you get your accounts current. You can call your creditors and make arrangements and ask them if they can help remove some of those items from your credit report as well (this does not mean that they have to or will do that).

  14. Reply
    itsjustme
    February 14, 2011 at 1:28 am

    With the credit scores you have lissted, I doubt if there is a mortgage institution that will approve the loan. Might want to consider asking the mother-in-law to do the financing, although with your credit background she may not want to take that risk!

  15. Reply
    pagodaboy2001
    February 14, 2011 at 1:53 am

    I would get rid of the debt first. Are your payments to your dmp going to your debts? If you don’t know look into it ASAP some companies are a little shady.

    Look for a mortgage company that does manual underwriting (the way they use to do loans before credit scores) that way you won’t need to worry about your credit score. Just make sure you have a job, your downpayment in a risk free account, pay rent on time and pay bills on time.

  16. Reply
    piiswc
    February 14, 2011 at 2:49 am

    I hate to say this but the more debt you pay off the better chances are that you will qualify for the loan. A larger down payment will help you secure a loan for a house but in today’s market and with your outstanding debt it may be tough to get the loan. Depending on your rent or current mortgage per month bill, and the willingness of your motherinlaw to not be offended, I would suggest paying off your debts with her money instead of buying the house. And I must stress to make sure the $ 40,000 is a gift and not a loan she intends you to pay back. If it is intended to be paid back be sure to draw up a contract with a payment plan with her. Money can drive a wedge between her and you guys.

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