does anyone know of a direction i can go to get aloan for a house when i have bad credit(husband credit that is deceased.)i am responsable for as his widow any help would be appeciated!
2006-06-15 20:45:10 · 3 answers · asked by Anonymous in Home & Garden ➔ Other - Home & Garden
Check out lendingtree.com its a good place to start. At least you can get an idea on what they would offer you. Are you currently maintaining good credit? If so, and if you've been doing it for 6months or longer your credit score will reflect that. Check your credit reports and credit score. If you haven't done so it might be better than you think.
2006-06-15 21:03:41 · answer #1 · answered by Mitch D 2 · 2⤊ 0⤋
When I was seeing about buying a home, from what I understood, the loan and loan amount they will loan you is not so much based on bad credit as it is on the percentage of your income and what debt you owe. Most lenders don't like loaning much over 40% of your income, 50% max. They aren't so much worried about bad credit like as with cars or a credit cards, because with a house loan or mortgage loan, you HAVE to pay them back in FULL. That's not so with other credit debt. (A really good book to read is Suzie Orman's book. I think it is called the Money Book for the Young Fabulous and Broke, it's really good.) They also look at what else you have regularly monthly payments on: car payments, credit card payments, etc. Basically, it's not so much about bad credit as it is whether you can afford the payments. Since your a widow, I imagine your total income has significantly decreased and therefore the amount they will loan you will be much smaller. One suggestion, I don't recommend shopping around from bank to bank to see which one will loan you the most money. There's a reason they come up with that max limit, because they know over that and most people will not be able to make the payments. There are a lot of hidden costs, especially if you decide to build a home. If you build a home, don't forget that the taxes will go up signicantly anywhere from 6 months to a year or so later, raising your payment by quite a bit. The monthly price they quote you is also the price with no amenities added to the house, the base standard version. Also be careful of ARM loans or variable interest loans. ARM's lock in a low rate for X number of years, but after that number of years is up, it can go up by 2% a year, causing a lot of people's houses to get foreclosed on when their payment rises. Good luck, but be careful. Just bought a house myself about 2 years ago.
2006-06-16 02:14:15 · answer #2 · answered by devilishblueyes 7 · 0⤊ 0⤋
If you explain the circumstances to the loan officer, I think they would be more apt to give you a break. However it will be hard to get a loan if your credit is bad.
2006-06-15 21:04:14 · answer #3 · answered by Pete 5 · 0⤊ 0⤋