Is it possible to buy a home with really BAD credit?

Question

My husband and I have really bad credit. We both were in previous marriages and that is were it all started. He has a foreclosure on his credit report because his ex decided she wanted to keep the house after they split and then she didn't make the payments so they forclosed on it. This messed him up as well and it shows on his credit report. They almost foreclosed on mine but I was able to sell it before that happened. On my credit report it shows I was late a lot of time. We pay $700.00 a month for rent and that's like throwing money away. We don't know what to do about this. Are mtg companies easy to work with than the bank? I forgot to mention that his first mtg was a VA loan. Will they consider him for a loan again? Does anyone know the answer to this question?

Answer 1

I work for United Lenders Group and I work with over 45 different banking companies so I could get you a mortgage loan no matter how bad your credit is or how much in debt you may be
916-860-0804
keyon

Answer 2

well not sure where you live. But I live in Canada. My husband and I just recently purchased our first home. Like you we also had some troubles on our credit reports. We were able to get a loan through a hugh risk lender. Our intrest rate is higher than a regular bank. we pay 8.25 percent and I think the bank is about 6 percent right now. It is kinda crappy that it is so much higher but it is the only way we could get into the market. Plus after 3 years our bad debts will have fallen off our credit reports and we can take our mortage to another lender for a better intrest rate.
try contacting a lender that will work with Wells Fargo Bank.
Hope this helps, Cheers, Glenda

Answer 3

You need to call a mortgage company and talk to them. I think you'll be surprised. Even people with past bankruptcies can buy houses. The lower your credit score - the worse deal you're going to get. Meaning, you'll pay a higher interest rate or maybe more up front charges.

I recently went through a similar situation. My line of reasoning was that no matter how bad of a deal I got on my home loan it was better than throwing rent money away by the month because I would be building equity. After a few years of making payments on time, you can always refinance and get a good rate. In the end I was thrilled with the deal I actually did get.

Good Luck!

Answer 4

Anything is possible with bad credit, but more likely than not, you'll get screwed. They'll charge an extremely high interest rate that will cost you... Your best bet is to wait awhile, fix your credit up by paying your debts and establishing a history of paying on time, save up money so you can make a big down payment and pay down interest points. Otherwise you'll probably just end up defaulting on the loan and ending up with even worse credit. Its not a short term solution, but I'm in that same boat. Waiting and doing it right is worth it. It sucks, but its worth it. People will always take advantage of a person with poor credit - don't be their victim.

Answer 5

Yes, and yes, and yes.

You can get a home loan much more easily than a car loan. A mortgage company will probably want to go to the FHA for a loan guarantee, but, sure, you can get a home loan.

Get pre-approved. That means, choose your mortgage company first. Tell them everything (they'll find out everything anyway, and it saves time - sometimes months of paperwork if you're honest up front) and you'll be able to lock in on the home you WANT, not the home that someone picks for you.

Once you're pre-approved (they'll send you a letter saying, "we'll loan you up to $[some dollar amount]") you know exactly what you can afford, and can target exactly the home you want. Also, being pre-approved, you can go ahead and make an offer and close the sale without losing the house to another buyer while you scramble around trying to get a loan.

Good luck! - Stuart

Answer 6

It is possible for you to get a home loan, but you really need to show the creditors that you are able to pay your finances by taking out small loans now which will improve your credit score.

There was a similar question asked at http://answers.yahoo.com/question/?qid=20060709190855AAmKlD4 and you should check out the best answer b/c they worked for a mortgage company.


One way or another, virtually every prospective home buyer can find a way to finance his or her purchase. The first step is to get a copy of your credit report and FICO score to check it for accuracy. If there are any errors, correct them with the credit bureaus.
If your credit is less than ideal, the second step is to consider buying a home with a sub-prime mortgage, taking over an existing mortgage, obtaining seller financing, or buying on a lease with option to purchase.

Answer 7

sure http://www.wesayes.com
text from the 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 8

If you have a lot of cash to put as a down payment, you can get a loan. You might need as much as 50% down though.

Otherwise, wait and don't generate any more bad credit. Pay your bills on time. It will take about 7 years to get your credit score back up.

Answer 9

I say you won't be able to get a home loan with your credit as it stands. When my husband and I applied for one, he had charge offs. We had to pay EVERYTHING that was on his credit report. We finally got financed but at a high interest rate. Good Luck!

Answer 10

The person who can answer your question is the one gives the loan. I recommend you go speak to an advisor. It may be possible that you are too high risk, with bad credit, but you need to ask about this, to the right people, to get your answer.