how can i get a home laon for a first time home buyer with realy bad credit and low bocon score?

Answer 1

That depends on how low that score is, below 500 you are pretty much out of luck. But over 500 could be done. You need to find the right lender and most likely will need to enlist the assistance of a professional mortgage broker.

The lender will look not only at your FICO score but also your current obligations to see if you have been consistent in your monthly payments. Also the lender will review your income and assets to verify that you can afford the property and have suitable reserves.

Even if you are able to get a loan you will no doubt be paying a much higher interest rate. If it is your desire to buy now and you are able to secure financing make sure your loan does not have a prepayment penalty. Then work on repairing your credit, one of the best ways to improve your credit is on time mortgage payments. So after a year you should be able to refinance into better rates. But you need to pay on time and take the necessary steps to improving your credit score.

Answer 2

Call Guido the loan shark.

Your best bet is to take about a year and repair your credit by paying things on time and so forth. You'll save thousands of dollars in the long run by getting a better interest rate. There are some good books out there on how to repair your credit.

As far as getting a mortgage or home loan, I've had good luck with LendingTree.com.

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 or 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

Answer 4

There are several options. Depending on down payment, if the owner will hod a second mortgage or what I have been able to to do for many of my clients to to find competitive banks.
Feel free to contact me via the information below.
Jenold Freeman
C.E.O. Justgetaloan.net
[e-mail]
866 530 7300
Dont forget to log onto www.justgetaloan.net Americas home for real estate financing needs. For the best in rates, loan programs and service. Remember no matter what the situation; Can't we all just get a loan?

Answer 5

I went with Owner-financed, agreeing to some sweat equity. Had a lawyer look over the sales contract. I feel better off than doing things that way instead of setting off all the alarms at the credit companies. It is a buyer's market.

Answer 6

Rent to own fix in lower price with long time for purchase and agree to partial pay to an ESCROW acct for down payment when the time set becomes due. You have a down and maybe fha depending on how bad you credit is. In the meantime your paying your credit obligations down past the halfway point and calling creditors for arrangements. Good Luck!

Answer 7

"how can you get a home loan for a first time home buyer"? You sound like you're posing as a real estate agent, but if you were one you would know that there are many programs out there for first time buyers. Ask your realtor.

Answer 8

Go to several mortgage companies before you make a decision because they will give you a large interest rate. Sometimes, if you have outstanding debts, they will give you a chance to pay off the bills to improve your credit.

Answer 9

try to get more than one lender,or better yet, try to get a first time home buyers grant.

Answer 10

Agree to a high interest rate.