Can you buy a house with bad credit?

Question

My fiancee and I make a combne income of 90,000 a year but we both have terrible terrible credit. Will we ever be able to buy a house?

Answer 1

Quick tips:
Find a good real estate agent that can guide you!
Visit here http://mycreditadvise.com
This is where my wife and I learned what we need to do to raise my credit score form 580 to 720 so that we could purchase our first home.
Good Luck!

Answer 2

Sure. Maybe not today, but in a relatively short time. The key is to bring up your credit score. How? First, start paying your current debts at a regular, consistant rate. You don't have to be debt free, just prove that you will meet the required monthly payments. Then, if possible, start closing some, not all, of your credit accounts. If you appear to be over extended, your credit score won't improve. Finally, have a good down payment in the bank for several months. Keep adding to it at regular intervals. This will give mortgage lenders a history to refer to when looking into your finances.
I divorced at age 45 and had no credit history at all, everything was in my former husband's name. By following the above steps, I was able to buy my own home when I was 48. So, I'm proof that it can be done!

Answer 3

well you could get a co-signer in your situation. Try you and your husband to increase your credit score by at least a 650 and above once you do that then you could qualify for a loan AM sure that there are many programs that Willl fit your needs.You could give a 10% down payment for the price of the house but your interest rate wil be up up up high in the sky.
Jonathan Santos

Answer 4

depends on your definition of terrible terrible credit? if you can get a copy of your credit report, the both of you, and find out what your MIDDLE score is, NOT your highest score. this will give you an idea of what your chances for buying a home are. anything below 500, rent an apartment. anything between 540-590, you'll need at least 10-20% down payment. 640 and above will generally qualify you for a 100% loan.

Answer 5

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

----------------------------------------------------

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 6

Absolutely! You can get financing with any kind of credit now days hun! When buying a house though it is best to find someone local to finance you..... just make sure you do that....

Answer 7

Absolutely, dont let your credit stand in your way, most of the lending companies you see on tv have plans suited for the credit challenged, and don't be afraid to shop around.

Answer 8

There are hundreds of mortgages out there for people w/bad credit...expect a high interest rate and costs, though.

Answer 9

try wells fargo mortgage
678 284 4014
ask for yolanda Rhome

Answer 10

if you bring your credit scores up. if you try now they will want a lot of money down and you will have a large intrest rate.