can i get a mortgage with extremely bad credit?

Answer 1

There are several options available for you. The first and foremost question is what are you considering bad credit?

-Credit Score - There are lenders who will help you finance this home with a credit score down to 500
-Have you owned a home before - first time home buyers may qualify for discounted or below market rates providing they meet income and credit guidelines.
-Location - Where is the property located?
-Reserves - The amount of money you have in your bank account after buying the home.
-Income - Is it verifiable

You need to start by knowing what your credit scores are for all 3 of the credit bureaus (equifax, experian and trans union). This will give you a base to start shopping for financing.

As you are applying for financing you have 30 days to "shop" for a loan. During this time the credit inquires are not supposed to affect your score. This is not always the case.

I recommend you get you score from a site like myFICO.com and shop a few lenders first. Do not let them pull your credit. Send them a copy of your report if they need to see it. Most lenders can get you some estimates without pulling your credit.

Improve your score - Everyone’s situation is different. Some things you can do to improve your score are:
- Pay your bills on time
- Get credit balances below 75%, 50%, 35% of available credit
- Do not open any new accounts or apply for additional credit
- Do not close any accounts
- Dispute errors on your report
For more information on credit go to Fair Isaac's site (they created the credit score) www.myFICO.com


Be careful of a lender quoting you a price a lot lower than the others.

Once you are ready to get into contract on your new home, you will need to have at least one of the lenders pull your credit so they can process your approval.

While you are shopping for your new home do not make major purchases or run up credit card debt. This can have a drastic effect on your score.

~Danke Schoen

[e-mail]

Answer 2

You might be able to. I had some credit problems when I developed multiple sclerosis, and my credit rating really dropped. Four years afterward, my credit was still not great, but I was approved for a mortgage at a very high interest rate. So to answer your question, you still might be able to, but the interest rate may be sky high. And of course you won't be able to get a conventional mortgage from a bank. You'll have to look in the phone book for a mortgage company. If you can borrow the money from a friend or family member, you would be far better off. Good luck to you.

Answer 3

It depends upon how bad "bad credit" is. I've had people with 740 scores and higher tell me they've got rotten credit!

Under 500, you've got to go hard money. Rates of 13 percent and higher, minimum down payment of 25%, probably more.

If you've got a 580 and can prove you make enough money, you can get 100% financing. Maybe as low as 560. Of course the rates could still be better, to say the least.

The better your score, the more of a down payment, and the better documentation of a stable income you have, the less risky your loan and the better the rate. Once you get above 720 score and twenty percent down, and proving your income in the same line of work for two years, that's as good as it gets.

More in depth explanation here:

http://www.danmelson.com/posts/1147465405.shtml

Answer 4

It's a lot harder to do.
You can expect to have to pay a larger down payment and a higher interest rate.
Sometimes a good mortgage broker can help you, but they charge on top of everything else.

Another choice is to get an owner financed house, or even a "rent to own" agreement, where part of your rent is put aside toward the downpayment, so that you can build a downpayment up as you rent the place over a period of several years.

Answer 5

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Answer 6

Read some useful tips on mortgage and credit on this site to help you with it

Answer 7

I am a loan officer who can help determine if you are ready to purchase a home (as far as credit is concerned). How bad is your credit? E-mail me at [e-mail]

Answer 8

Utilize all your resources on the internet also. There are many sites which provide information to help you increase your credit rating. Try this one: http://www.equity-network.info. Lots of good information and articles.

Answer 9

Yes but you will need a very very good down payment 20% an you will pay points out the A===== good luck

Answer 10

There are lenders that will arrange remortgages for people with bad credit rating. But remember that rates will be higher than those offered by other lenders.