2006-09-12 11:30:28 · 13 answers · asked by kt 1 in Business & Finance ➔ Renting & Real Estate
Buying without downpayment
Lender will give you money for sure. Probably charge you a higher interests rate and extra insurance on the loan for not having the good credit.
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. In most area of the U.S., housing price stopped going up as inventory continues to build up. It is normal to see a correction as a boom that lasted for several years.
If you are investing new money in to real estate, this may not be a good time as the potential return on investment is small compare to the high risk of lower home price.
If you are doing a side way move, meaning you are selling one to buy another one, then it is acceptable.
Nothing is absolute, but housing market is very likely undergoing a correction and this is only the beginning. Some say this would be a soft landing (0 to 10%). Some say a big crashing is coming (10 to 20%).
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
2006-09-12 20:54:09 · answer #1 · answered by Price is what you pay for value. 3 · 0⤊ 0⤋
Yes you can.
I work with over 140 lenders, some will finance a person with a 560 score, possibly a little lower.
Lenders will look to see what has caused your credit rating to be poor. Were you a home owner before, and were you late on mortgage payments? How is your payment history now? Have you been on time with car, credit card, or even loan payments on time? Some lenders will overlook old collections; depending what they are.
I have lenders that will finance someone 2yr, 1yr, or even one day out of bankruptcy. But remember that the interest rate will probably be high, anywhere from 11% up.
If you need more info, please email me at mmorganloans@yahoo.com
2006-09-12 20:44:26 · answer #2 · answered by mmorganloans 2 · 0⤊ 0⤋
Absolutely. And as other answerers pointed out you will pay a higher interest rate.
But, depending on the housing prices in your area, it may not matter much. A higher interest rate on a $300,000 loan makes a much bigger difference in monthly payment than a higher interest rate on a $50,000 loan.
Talk to a mortgage professional and find out what you qualify for and what you could expect payments to be. Be honest with yourself. If you can afford the payments, go for it. You can always refinance later. If you know that you can't afford the payments, then ask your mortgage professional what you need to do to improve your credit and qualify for a better interest rate.
2006-09-12 18:40:47 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Sometimes lenders have a minimum credit score that they will allow for buyers. First time home buyers have to have a score of 620 or 640 - that is what my husband and I were told by a mortgage company because we were trying to get the first time buyers loan. If it is extremely bad credit then no, lenders will not risk loaning you the money in the fear of not getting their money back.
2006-09-12 18:37:14 · answer #4 · answered by jewels_of_fire76 2 · 0⤊ 0⤋
Yes, but the difficulty is finding a creditor who will give you the money, some companies will offer you the credits but a hugely inflated interest rate known as the barrier of security, seek advice from your bank before taking out a mortgage from an external creditor.
2006-09-12 18:36:15 · answer #5 · answered by Anonymous · 0⤊ 0⤋
depends how bad and the down payment. i am buying one right now and my credit isnt very good
also if it is old debt it may not be on your credit score anymore i was 30 thousand in debt and only 2900 showed up on it because it was years ago. well good luck there is a totally free credit report site ask someone will tell you it i forget it but i got one.
2006-09-12 18:38:02 · answer #6 · answered by LOLO 3 · 0⤊ 0⤋
I didn't think so, but my client has an aproval letter. I'm working with a lender and the program he has can get you into a home. You really have to want it, but if you can afford the program you can get a house. It will go so low that if you don't qualify with your fico it has a default that will qualify you without one.
I will tell you that you will need a good agent to make it work, and a lot of patience.
If you need a pre-screened agent, please feel free to contact me.
2006-09-12 18:37:57 · answer #7 · answered by Anonymous · 0⤊ 0⤋
YES!!! I can 100% finance any home with any credit. You must make enough money to afford the house and have an acceptable work history. dave.peters@sbcglobal.net
2006-09-16 14:34:10 · answer #8 · answered by Original Credit Guru 3 · 0⤊ 0⤋
Didn't know houses had bad credit lol sorry couldn't resist. :p
2006-09-12 18:33:38 · answer #9 · answered by Julie1977 2 · 0⤊ 0⤋
Why would you want to? It would be cheaper to rent until your credit cleared and you can get a decent rate.
2006-09-12 20:26:09 · answer #10 · answered by Anonymous · 0⤊ 0⤋