how can i buy a house no money down and a bad credit score of 477?

Answer 1

You did not say why your credit score was low. Charge-offs, no or late pays are always bad. Perhaps you simply have had no debt to even rate a score. In any case, get a copy of your credit report, see what it says. If charge-offs, and you have some funds, call and negotiate a settlement for a reduced amount, have them issue the agreed to amount in writing to you, then pay it, do the same to the remaining outstanding bad debts. Start with the lowest balance and work up from there.

Do NOT send any money until you have the agreement in writing, and be sure it is as agreed, no hidden meaning or agendas. Never give a collector access to debit your account, they will drain it. Keep paying off the debts until all old debt is paid, and have them also report it to the credit bureau. Require that they send you an acknowledgement of the receipt of payment as agreed, or at least send it requiring a signature to receive it. You can do this yourself you do not need a 3rd party to do this for you. Also write a letter to hte credit reporting bureau, if the info is inaccurate or the reporting company fails to reply within 30 days they must remove the negative report from the bureau file. Further they are required to report when you DO clear up or settle the debt, failign that you can again srite nd threaten with reporting them to the appropriate Fed agency and they will be fined.

Here is a brief Home-Buying Course 101 I do with new buyers adn assuming you get things cleared up:

Min score for FHA loans is 580. As long as you have sufficient income, 2 yrs on the job (a college degree counts if you are using the degree in your job), last 2 yrs tax returns or W-2, last 2 check stubs, last 2-3 months bank accounts statements, no late payments for the last 12 months, no unpaid charge-offs your chances improve to as good as anybodys.

Your payment will be calculated at 29% of your gross pay (before taxes). The max debt will be calculated as 39% of your gross pay, to include any outstanding debt that will not be paid off in less than 10 months like: daycare, child support, student loans, car or credit card payments, basically any reoccuring debt you are paying on including the proposed house payment. They will then calculate the price range of home to seek. FHA requires a 3% down payment and closing costs will average about 3.5% of the loan amount. Your real estate broker can ask the seller to cover that for you out of their sale proceeds or a family member can "gift" you the closing funds. For those getting married they can also do a bridal registry at a local lender. If you are a first time buyer there may be special programs available to assist as well. Demand a fixed rate as adjustable rates will only be going up in the near future as they already are historically low. Special programs for first timers usually are a bit below market anyway if you qualify.

Choose a full licensed real estate broker, one with the highest level of real estate license status your state recognizes to work with in getting your home. They also should have minimally the CRS and GRI designations. Look for the top 3 agents in an office as they usually are go-getters and will do a good job as their track record speaks volumes. They also can recommend lenders if you need one. Do all you can to avoid B-C lenders, that is not in yoru best interest to do a deal just to get a house. Hang out for "A" lenders.

I feel that 100% financing would not be in your best interest, if you get in a bind and must sell you have no cushion until you have been there a few, perhaps several years, and you are even slower to build equity, meaning your wealth. As for building credit scores, pay your outstanding bills in full, pay all bills on time.

There is no real advantage in paying things like your phone bill months in advance. There are advantages in paying off debt early like car payments or credit cards or your home. If you have little to no debt you have real power over your destiny. No worries about making the next payment, no asking for a loan to go on vacation, you pay real money for what you buy, not inflated with interest. And when you do need credit the terms are far more favorable.

Credit tends to be mismanaged in our society. People need to learn to live below their means a bit, as masternig that will in fact allow you to eventually live above many people, debt free. I went broke in 1985 and learned the hard way. Today I have recovered and teach people like you for free to manage their income. My sons are learing this lesson from me as they too work to build their own wealth. Both intend to own their homes free and clear within 10 yrs of buying, and I believe they will make it. I have 40 hrs of finance class and more thant 500 hrs total real estate and finance related education. I do not claim to have all the anwers, but I do try to give good answers. This one works without fail.

Lenders make money loaning money, they just need a reason to lend it. Show them you are a good risk, they know bad things happen to good people, and that somethimes even good people have to learn some hard lessons. Most people fall into one or both of those categories.

Best wishes to you!

Answer 2

Some owners have rent to own. But, regardless - just start fixing the credit scores and seeing if there are things in your report that are over 10 years old and if there are - INFORM the credit places to remove those old items off. They are not suppose to have them on your credit report after so many years. Also remember anytime you apply for a credit card or credit, points go against your score. Start saving money in the bank...it will be hard to not want to touch it, but if you have enough money down - some places may be willing to work with you. It may be at a higher interest rate, but you can re-apply in a year or so and get a better one, once you start establishing your credit again. Good luck, I'll be crossing my fingers for you.
(I sorta miss just renting at times.) I am starting to hate all the things I find myself having to do around my house.

Answer 3

Lender will give you money for sure. Probably charge you a higher interests rate and extra insurance on the loan for not having the down payment.

Would you consider delaying your plan? Professional investors are careful in choosing each investment that would be near or immediately cash flow positive. With overpriced housing market, that is not possbile.

For example, it costs $500,000 to $550,000 to buy a two bedroom units in Sunnyvale California. Mortgage monthly payment with nothing down is $3500 to $4000 a month with 7% APR. The rent one can collect from such unit would be $2000 a month. Therefore, for each unit you buy, you would lose $1500 a month.

* We assume tax benefits would cancel out with tax and maintenance fee. Please consult your CPA.
**If you have large down payement, the rate may be lowered.

Another important factor to consider, home price may not appreciate as much anymore.

http://money.cnn.com/2006/09/08/real_estate/caught_in_the_bubble/index.htm?postversion=2006090814
http://money.cnn.com/2006/09/05/real_estate/Ofheo_home_prices/index.htm?postversion=2006090514

Answer 4

First you should work on your credit score. Unfortunately, not many mortgage companies will work with you unless you have a score of 580 or more. When you do get to 580 or more you can contact Countrywide or any other loan companies that work with people with not so good credit. Hope this helps.

Answer 5

I found a solution that worked for me. It might work for you too.

I had some pretty serious credit problems…some were not my fault and, I guess, a few were. I listened to the so-called “experts” who said they could fix my credit report and I spent money I didn’t have. I didn’t have any luck trying to get my credit report fixed.

I remember paying for the services that these Credit Repair Companies had to offer. The companies told me that they could have negative items removed from my credit reports without any problem, Yeah, right. This did not happen at all. Most of the companies wanted to charge me a set up fee anywhere from $39 to $299 for their services. Not only did they charge this set up fee, most of them also wanted to charge me from $29 to $49 monthly while they “attempted” to repair my credit report. These companies offered no guarantee that their services would actually work and, believe me, they didn’t.

I was about ready to give up when I found a lady who had been through the same thing and who had found a solution. She figured out how get all the negative items removed from her credit report within 3 months without paying anyone a penny. She developed a fast, easy, step-by-step process that she guarantees will work for everyone. She sells the complete plan with all the help and instructions for $47.00.

I know what you are thinking…”another $47 down the drain,” and that’s kind of what I was thinking too. But, I figured that since she offers a 100% money back guarantee I had nothing to lose.

Well, I tried it and it was amazing. I got all of the negative items removed from my credit report and my credit score went from 553 to 715 in only 3 months. All I can say is that it worked great for me. I suggest you check it out. You can always get your money back if it doesn’t work for you. If it works even half as well for you as it did for me you will never even think about asking for a refund.

The information is on this site: http://clean-credit-secrets.com/

Answer 6

You don't need a co-signer. Just put enough money down so that when you default on the loan (and you will) there will be enough equity for the loaner to make a ton of money off you.

Answer 7

Find out if your state acknoledges squatters rights. In some states like California if you live in a building long enough the state will give it to you if you can show that you have not only maintained the residence.

Answer 8

well friend,
You have to get some one that has good credit help you out and you could get help with any mortgage consultant in your area.. You shoul start by fixing your credit score my friend then your problems will be solved....

Answer 9

"buy on contract".

of course, you have to find someone willing to SELL to you on contract--usually the owner of a rental home is open to this suggestion. It's done all legally with contracts and attorneys etc. and if you default, it goes back to the owner and the money you've paid is considered "rent".

Answer 10

Realistically, you need to have some cash or credit. You are a risk.