Someone in a position for a mortgage with bad credit?

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My rent is more than a house payment would be! To do this with a trusted company where I do not get screwed on the job! HELP!

  1. Reply
    February 23, 2011 at 5:29 pm

    That depends on how bad the credit and whether or not you have a down payment. Having money to put down on the home can usually offset bad credit. You still may pay a higher interest rate (due to credit scores), but you can still be a home owner.

    If you are looking for a 100% LTV loan and you have bad credit you are out of luck. Lenders require a FICO of 680+ for almost all 100% purchases.

  2. Reply
    February 23, 2011 at 6:29 pm

    Try a Fannie Mae loan; they will work with you and treat you fairly. (FHA loan)

  3. Reply
    Renu G
    February 23, 2011 at 6:59 pm

    If you have a bad credit history still the loan market place is full of lenders who are ever willing to offer you a fresh loan. But you should be meeting some conditions laid down by the lenders. Loans for bad credit people are in fact easier to get then they were ever before, thanks mainly to cut-throat competition amongst the lenders. Lenders are giving loans to the bad credit people who have late payments, payment defaults, arrears, county court judgments or any credit problems. These loans are available for any purpose like home improvements, purchasing a new or used car of your choice, for wedding and holiday tour, debt consolidation or for paying child’s tuition fees.

    Every lender in approving loans surely likes to see if the bad credit borrower has sufficient capacity to repay the loan in timely manner. If the borrower earns well, has regular bank balance, has been an employee for some years and has a convincing loan repayment plan in place, then the lenders do not usually hesitate much. So ensure that you have adequate repaying capacity before applying for a loan. Also, you should first check your credit report for any errors. If your credit score is too low then you would be charged a very high rate of interest. So it is advisable to first pay off some easy debts to improved credit score and then you should apply for loan at better rates.

  4. Reply
    February 23, 2011 at 7:22 pm

    ask realtors about first home buyers programs there are programs with local community centers with loans

  5. Reply
    February 23, 2011 at 7:48 pm

    First off…are you sure your rent is more than a house payment. I know you see these ads online that say a 150k loan for 875 per month(or whatever teaser it is) Remember that you have to pay taxes and insurance, and if its 100% financed then mortgage insurance too. All that will run you about another 300 bucks per month on a 150k house. Dont forget you will have to pay sewer and garbage on your new house that you probably dont pay for now which will run another 50 per month or so. So when all is said and done, that 875 payment is really $ 1,225.

    Oh and that $ 875 dollar rate is for someone with good credit. Since you have bad credit say you get a 7% interest loan instead of a 5.75%. That ups your 875$ payment to $ 997.50. So a 150k home will really end up costing you almost $ 1,350 per month.

    Sorry to be the bearer of bad news.

  6. Reply
    Raymond R
    February 23, 2011 at 8:14 pm

    Given the currents in the mortgage market, I cant imagine it although I would say no in any case.

  7. Reply
    February 23, 2011 at 8:59 pm

    It depends on how bad your credit is! Have you checked your credit report lately? Might be a good idea to see just how bad it reallly is. There are companies who will work with not so good credit, my realtor uses a local one here in Missouri, that even works with manufactured homes and not so good credit.

    Of course with not so great credit, the interest rates will be higher…especially if you don’t have a good size down payment.

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