Mortgage w/bad credit?

Question

I saw a question about this w/positive answers, but me and my hubby had no luck. We both had bankruptcy (before we were together), but had good jobs, and our only collection accts. were medical bills or credit cards. We have great cred. with our secured debts, but his score was 565 and mine was 594. We tried for over a year to find someone to finance us even a home less than 50k and had $5000 to pay down---no dice! Nowhere! Most companies wouldn't even give us the time of day because we had filed bankruptcy in previous years. If anyone knows of a miracle company out there please tell me!

Answer 1

I dont know if you qualify or not but check out www.ameridream.org. They offer down payment assistance to low and moderate income families. Even if they cannot help you with the down payment offer, they would be an extremely credible source to help direct you on how to make your goal a reality. They should know who the higher risk lenders would be. Good luck. Just make sure you don't get into more credit trouble by sticking to a realistic price budget and factor in costs for maintenance, tools, supplies, etc. because they sure add up.

Answer 2

I don't know of any specific mortgage companies that would give you credit, but most will give you a mortgage if you have had the bankruptcy for a few years and have established good credit since then. I would call around and see if you can find a mortgage broker who will search the rates and lenders for you. They do cost more in origination fees and you will pay higher interest rates than most, but if this something that you want to do, then you should. If you want to try to go on line and see if you can qualify for a loan, then go to www.eloan.com, or www.lendingtree.com. You might be able to get something of an idea from them. Another thing that you can do is lease with an option to buy or owner finance. Check all those out...

Answer 3

While it is possible you may find a mortgage somewhere your interest rate and fees will likely be horrific, perhaps even negating many of the benefits of home ownership.

My suggestion is that you continue to pay down debt that you have, get collections removed from your credit, and do some research about how to improve your credit score. You may even have to wait until seven years after your bankruptcy before you can buy a home.

Lenders have plenty of business from people with good credit, and few want to get involved with people like you (no offense). You had good jobs, but still ruined your credit, you had bankruptcy yet still have outstanding collections on your credit. Companies see this as a pattern of credit mismanagement and so don't want to take a risk with you.

If you educate yourself on the ways to improve a credit score (there are some great articles out there) and make positive steps to making these adjustments, along with saving up a 20% deposit, you will be well on your way. It make take a few years, but you can get there eventually.

Answer 4

The simple answer is yes. Lenders have tightened up their standards and raised their qualifying credit scores so it would be difficult with low scores/bad credit. Why is your credit bad? Behind on payments? Bankruptcy? Collections? Judgements? Are the problems easy to fix (get caught up on payments) or more difficult (waiting for 2 years to pass after a bankruptcy). But it is relatively easy to raise your scores. Lower your balances on revolving credit (credit cards). Cancel credit accounts you do not use. Have diverse credit (credit cards, student loans, auto loans) and show you can handle those account sby paying them on time. There are many factors that go into a loan approval and good ones can offset bad ones. For example: lets say you have a credit score of 590 - a bit low for a typical conventional mortgage at todays 30-yr rate of 5.875. However you are putting 10% down on the purchase, you have solid employment history, and you have reserves (IRA's, savings accounts, 401K's, etc.). The low score could be offset by those other factors. It is a bit of a guessing game but a good mortgage broker will be able to tell you if the good outweighs the bad. If not, what terms are you looking at now and how long do you need to wait to get a better rate (and what do you need to do to enhance you chances of a better rate).

Answer 5

Your situation sounds just like my husband and me. We went through a mortgage broker in Hot Springs Arkansas called DFS Mortgage and Finance. He found a lender for us - Citifinancial. We didn't get a great interest rate, but after 2 years of making payments on time, we were able to refinance with Citifinancial and get a better rate.
My advice to you is to find a smaller mortgage broker and let them help you. You'll have to pay them, too, but it's well worth it to own a home!
Good luck!!

Answer 6

Almost sure that you must find every financial solution at: financial-care.info-

RE Mortgage w/bad credit?

I saw a question about this w/positive answers, but me and my hubby had no luck. We both had bankruptcy (before we were together), but had good jobs, and our only collection accts. ...show more

Answer 7

clarkhoward.com. He knows it all. Especially subjects pertaining to MONEY$$$$ He is very frugal but has alot of clout. GOOD LUCK!!!!

Answer 8

You should try www.lendingtree.com. But, first - fix the credit !!!

Answer 9

try lendingtree.com or other "dot com" companies.