Is it possible for someone with a low credit score to purchase a home?

Answer 1

You will have to do a lot of searching, and be thorough because every loan company is different. Most of the common things you will face are:
1. A down payment usually 5% or more
2. A higher interest rate
3. Not as much selection house-wise
4. Not very many companies are left that will even consider a buyer with a score under 560.

Do as much research as you can to get the best deal possible, try to avoid having your credit checked unless absolutely necessary because every time someone looks at your credit report it drops your score. In the meantime find ways to improve your credit, by either paying off items, or making regular, timely payments.
Good Luck!

Answer 2

Do you want a candid answer?
The banks mortgage companies can all ways find a loans for you. HOWEVER the rates will be sub prime, loans will have more clauses than ....
and probably Adjustable arm (yours) rate.
An 80/20% loan is real popular now and at foreclosure sales.
You need to stop - Get your bills paid in full (2nd, 3rd jobs help), Get emergency funds (car and personal), Get cash for real down payment 10 - 20%. Find a human who knows how to write a mortgage without FICO score.
Don't get a loan P&I + Escrow that equals more than 1 week take home pay on 15 years note fixed. Interest rate are up and house prices are going down - bad time to buy unless you have cash.
If you do I may get to serve you a foreclosure notice like all these other so called 'smart' ex home owners that I serve on.
The banks win with you - they get the house and all your money.
You need to visit DaveRamsey.com to learn what banks do not want you to know

Answer 3

It depends on how low your score is. Some lenders require your credit score to be above a certain number before they will even consider giving you a loan. I know one lender that requires a credit score of at least 700. I have heard of some that will give you a loan with a minimum score of 630, but you will pay a much higher interest rate on your loan.

Answer 4

depends on how low your middle score is. anything below 520, forget about it. 620-660 will qualify you for 100% loan amount and anything below that scorem you will need to make a down payment of at least 10%. if you're in the 520-560 range, you'll need about 20% down. you can get loans with poor credit elsewhere but you'd be in the predatory lending category and that is not worth it no matter how much you want a house.

Answer 5

Yes it is. It might depend on a lot of things. I bought a Townhome but I got an FHA loan and i was able to get it with no money down. All I gave was $1000 for earnest funds but that was returned to me at closing. My highest credit score was 615. I have a 6.75% interest so it is possible. My loan amount was 87,000.

Answer 6

A credit is according to a 12 month activity. in case you and your husband have a visa/credit card, initiate making use of it for gasoline and small merchandise and pay the stability here month. A credit regularly is going up between 5 to 10% consistent with month so after 3 years of activity, your credit could be way up there.

Answer 7

Yes it's available, to the point that my client is going with a no credit score loan.
He has to put in a a bit of cash, and possibly owner finance some, but he will have his house, and while he does that, my lender is repairing his credit.
If theres a will there's a way.

Las Vegas Real estate
http://www.myhomeinvegas.com
The agent that didn't give up on his client when all others did.

Answer 8

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? As housing market continues to slump, it might save you 10% simply by waiting for a few months. Another way to look at it, you can increase profit by 10% when you are ready to sell it.

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

As housing market continues to slump, if you don't plan to delay your plan, please interview several and pick a good realtor or agent.

Bad ones will talk you into buying the largest property at your credit limit. Good ones will find you a good deal (Sellers are offering discount and incentives now).

Try to stay away from Adjustable Mortgage, because 30 year fix mortgage rate is very low right now. There is no reason to use Adjustable loans except fatter commission for loan agents.

Interests only loans are not good iether. Mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn't add to the equity to your house. It simply disappear as your pay it. If you want to use interests only loans, might as well rent, especially during market downturn, because housing price won't appreciate.

Finally, for tax benefits, talk to your CPA or tax accountant. Do not consult finance with realtors or agents. They get commissions when you sign the check!

Good luck!

Good article when you want to put in bid, negotiation.
http://biz.yahoo.com/brn/060909/19463.html

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Different perspective:

It is a myth that renting is always worst off than buying.

Rent vs. Buy as Housing Market Continues to Slump

As housing market slump, it is easier to calculate "Rent vs. Buy" scenario. Because "appreciation" is no longer a factor.

Mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn't add to the equity to your house. It simply disappear as your pay it.

If interests portion of the mortgage payment is roughly equal to rent of equivalent property, then it is a decent buy.

For example, let's buy a $500,000 condo with 0% down and apply interests only loan (just like renting a place). Mortgage payment would be $3250/month. It is a bad buy, because you can enjoy same property for $2000/month.

Please note that I assume the tax benefits from home cancel out fees from home association and property tax. For more accurate calculation, consult with your CPA or accountant. But NOT your realtor, whom will say anything to get the deal to go through.

And again, if you like a particular property, then paying more may be reasonable. You are the only person who can decide how much more premium you are willing to pay.

Answer 9

If you have at least a 550 score and your payments have been on time for at least the last 12 months you can.,

Answer 10

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