Is there any way to get a home loan if you have bad credit?

If you have bad credit, is there any way to get a home loan????

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tedabear

Asked by tedabear at 1:09 AM on Jun. 20, 2008 in Home & Garden

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Answers (8)
  • Well it depends on what you mean as "bad credit" you need to check your Fico score with the 3 credit companies determine if everything on there is correct as it may not be..  Contact a realtor and they can guide you through the process because there may be programs for you as a first time home buyer with little or no money down.. Always talk to a realtor and a lender when in doubt..
    michaelsmom2005

    Answer by michaelsmom2005 at 1:14 AM on Jun. 20, 2008

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  • I'm a realtor and basically the only program that is left here in Georgia (not sure where you live...if it's the same), is FHA. You can do what is called "down payment assistance" where they will "add in" the down payment amount to the loan. I would say to definately call a lender. If you need any numbers, I can suggest some people that I have worked with in the past that are trustworthy and hardworkers. My email is cashflowmom@yahoo.com
    cashflowmama

    Answer by cashflowmama at 1:24 AM on Jun. 20, 2008

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  • FHA Loan is the best way to go for you - they only require you put down 3% and nowadays, because of the market being bad, many new home builders (if you're planning to get a totally new home to be built) even sometimes offer incentives to help you with your closing costs. You should talk to some lenders and most likely, they will tell you what options you have depending on your credit.
    ejshemil

    Answer by ejshemil at 1:41 AM on Jun. 20, 2008

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  • Get a copy of your credit report. If there are any past due payments, get them caught up. Also, if there are any collections accounts get those squared away. Most mortgages will be approved if this is done, as long as income, debt-to-income ratio, and employment are adequate.

    You may be offered a sub-prime loan. Be sure to get a FIXED interest rate. Try to avoid extended terms (over 30 years). I worked in the mortgage industry for over 6 years and saw the adjustable rate mortgages (ARMs =) wreak havoc and cause people to lose their homes.
    Caiged

    Answer by Caiged at 1:59 AM on Jun. 20, 2008

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  • if you have bad credit first contact a mortgage broker to discuss your options . They are usually full of great info and can help you get on a plan to fix it up if you have to . I sel realestate and I always tell everyine to talk to the mortgage people first . After that I try to help them dispute things and i keep in touch until they are ready . Good luck
    angeleyesm

    Answer by angeleyesm at 7:08 AM on Jun. 20, 2008

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  • Try NACA -- The Neighbohood Assistance Corporation of America.

    It's a subsidized program.

    https://www.naca.com/index_main.jsp


    nell_brinkley

    Answer by nell_brinkley at 9:13 AM on Jun. 20, 2008

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  • What do you mean by "bad" credit? Do you have a lot of debt already, credit cards, car payments, other loans, medical bills, etc. If so take care of those things FIRST before getting a mortage. Is it just a low credit score do to lack of credit? If so just save your pennies so you have a good down-payment and be sure that your monthly payments is only 25% or less of your take home pay, and go with a fix rate. So, if your monthly take home is $2000 a month, the max monthly payment for a house is $500. That my mean holding off on your "dream" home and getting a fixer-upper. Just talk to a leader and see what you are approved for and ask what that would mean in monthly payments. We got a home $30,000 LESS then we were approved for, because we needed to keep the monthly payments affordable. (25% or less of our take home pay)
    SAHMinIL

    Answer by SAHMinIL at 12:11 PM on Jun. 20, 2008

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  • I work as an operations Manager for a mortgage company. I would be happy to discuss some of this with you if you'd like. There are a lot of things that factor into one ability to be qualified. You can email me at:
    krista@mtgmentors.com
    Good Luck and God bless
    mamakirs

    Answer by mamakirs at 5:46 PM on Jul. 1, 2008

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