how can you buy a house with only a 490 for a credit score, even with 20% down?

Answer 1

With 20% down there should be a few different options out there. Another angle would be to go through your credit report and see if there are any things you can do quick to get your score going the other direction.

If you are in Wisconsin, Minnesota or Florida I can help you.

Answer 2

With a credit score of only 490, you are a high risk for any lender. It's doubtful that you will be able to get a mortgage. You need to spend a year or two getting your credit score higher before you try for a mortgage. And, until you get your score up to the mid-600's, you'll be paying a super high interest rate.

One option open to you, however, is a home on contract or a lease to own option. You make payments to the seller, and they hold the mortgage. You can also try rent-to-own. If you go these routes, make sure you have an attorney review your contract to make sure that you don't get screwed over, and that you understand the terms of the contract.

Answer 3

You can buy a house with NO money down regardless of your score or financial history (obviously your options are limited by having a low score however, you still have options)!
I have personally bought over 27 properties with no money out of pocket and have even taken away over $50K at the closing table. You will need to find out how much you CAN borrow and/or find a flexible seller. In the interim, clean up your credit (get a copy and change what is wrong, and even have your good creditors report that you have paid well). I am an active real estate investor/ rehabber/ wholesaler and I have had my own mortgage company.
An excellent program to get is Carleton Sheets "No Money Down" Program, which is where I started and am amazed that I am still on his infomercial after 7 years!!! He has a special right now of $9.95 to try the course. I don't work for him. I tell you this because it is where I started as an investor. If it works for investors it will definitely work for a person looking to live in the property vs. rehab and rent or rehab and sell. Owner occupied financing is must easier to get than non-owner occupied. Feel free to contact me if I can help.

Answer 4

You probbly will not be abl;e to, but I would look for a land contract or a lease to own, even with your credit bad, if you are able to show 12 months of perfect on time payments ( create a paper trail) you will then be able to get a mortgage. Try metro Finance, they do no credit score mortgages as long as you show a good payment history for 12 months

Hope this helps good luck

Answer 5

We are going through the same deal, well our credit is not that low, but with 20% try going FHA. I don't know the details, but with that much down it shouldn't be too hard. Just gotta have long job history and other positive factors and explanations to why your accounts have went bad or the lack of credit, which ever is your case.

Answer 6

check the company that i have a link for on my profile
just click on my pic
here is some text from their site
"We have over 80 Little-known Banks & Companies that offer Bad Credit Loans, Bad Credit Home Loans, Bad Credit Auto Loans, and Bad Credit Personal loans to people with Bad Credit or even a Bankruptcy. Many require absolutely NO COLLATERAL & NO CO-SIGNERS. Home ownership is not required."

Answer 7

I feel ya man... it's possible, as it was for me. But the only thing I was able to get was the dreaded two loans... on loan just for the interest, and another for the principal. So you can see how you would get screwed. After that 'talk', I decided to up my credit... just pay your cards and stuff on time for at least 6 months, and you'll see a HUGE jump in your score.. trust me.

Answer 8

You need a large downpayment on the house, if you can't you need to improve your credit score, or have a cosigner with good credit.

Answer 9

You can't! That is why you have to pay your bills on time and that is exactly why its important to ALWAYS pay and pay on time and build good credit history. If that is you in this situation, don't you feel stupid for not listening to all these collectors, when they were calling you to try to get their money and kept telling you that this will hurt your credit and you just kept not paying them? Who is laughing now?

Answer 10

It is very easy. find a property whose owner is willing to hold the mortgage for you.