morgages???

Question

me and my hubby are thinking about buying a home and this would be our first time.we have bad credit which i know wont help much.i have no clue how to go about it.so i have a few questions and if you could answer and help me in some way that would be great....what type of moragage should i look into as a first time home buyer?is it possible to get a morgage worth more then the price of the house so some remodeling could be done?what company would be best to get a morgage from?thank you for your time!!

Answer 1

Usually what happens in cases of bad credit is that the interest rate is much higher and the loan to value is reduced, and what this means is that a bigger down payment is required. Depending on exactly what your credit situation is, what your debts are and your total monthly payments for you new housing expense (Principal, Interest, Taxes and Insurance) will determine the maximum loan you can get. Here you must be very careful. I have actually seen with my own eyes loans that have been given to low income homeowners where the total housing expense (P,I T,I) left the borrower with exactly $20 a month to live on and pay everything else, an unworkable situation to say the least, and this was APPROVED by the lender!!.

So you must be sure that if you do get a loan like this to make sure this is something you can actually pay. Some lenders like to collect a lot of fees for the mortgage itself and then sit back and wait to get the property through foreclosure. I have seen situations like this and it is not somewhere you want to be.

You could try Countrywide Home Loans www.countrywide.com they have a wide variety of programs available and are a reputable lender.

I used to be a mortgage loan originator in New Jersey.

Answer 2

Contact a Mortgage Broker, There are far too many programs available to you and your Husband. You can -even with bad credit- Get into a home with no money down. You could also get a loan called a rehab loan that will allow you to purchase the home and re-furbish it.
Most of all don't get scared and/or bullied into anything you don't need/want.
I am a Mortgage broker, I may be able to help you.
Even if I can't, information is always free. contact me with any questions.

Answer 3

Right from the gate, it is spelled, 'mortgage'.
It would be best if you both could get your credit cleared up.
I hope someone can explain things to you.
My hubby and I are on our first mortgage because our interest rate got lowered by 8% less. (that's allot!) And we got more money for home improvements also.
Maybe if you call a mortgage co. they will send you some info through the mail.
Good luck.

Answer 4

For poor credit, first time home buying and little down, you might want to look into a FHA loan:

http://www.hud.gov/fha/loans.cfm

However, you might want to look into repairing your credit and get a 80/20 loan. You can negotiate with the seller or your agent to get money at closing for remodeling cost.

To repair your credit, I suggest you guys go to www.equifax.com and pay $39 dollars for something called tri-merge report with credit score. You then can contest any negative information on line and get a response within 30 days. Of course, you can do this for free, thanks to George Bush, at https://www.annualcreditreport.com, but you don't get a credit score and you have to hand type the letters contesting your negative information.

Good Luck and feel free to contact me if you should have any questions.

Regards

Answer 5

let me ask you....is the interest rate whatyou are shopping for or is it the payment? and plus there is tons of programs out there.....no need to panic much....banks have changed much to match up with the economy...